2-Star Stocks Poised to Plunge: First Solar?

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Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, solar module maker First Solar (NAS: FSLR) has received a distressing two-star ranking.

With that in mind, let's take a closer look at First Solar's business and see what CAPS investors are saying about the stock right now.

First Solarfacts

Headquarters (founded)Tempe, Ariz. (1999)
Market Cap$1.9 billion
IndustrySpecialized semiconductor
Trailing-12-Month Revenue$2.8 billion
ManagementChairman/Interim CEO Michael Ahearn
CFO Mark Widmar
Return on Equity (average, past 3 years)17.1%
Cash/Debt$671.8 million / $664.1 million
CompetitorsQ-Cells
Sharp
Suntech Power

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 19% of the 3,932 members who have rated First Solar believe the stock will underperform the S&P 500 going forward.

A couple of days ago, one of those bears, All-Star Chemdawg, showed skepticism over management's recent restructuring plan:

[R]earranging deck chairs on the titanic ... how pretty that is ... too bad the solar industry is just a government supported money loser long term. [I wonder] what happens when the government can't afford to subsidize bad businesses? I would hate to put my money on the line for that.

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At the time this article was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of First Solar. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.

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