• support@madhedgefundtrader.com
  • Member Login
Mad Hedge Fund Trader
  • Home
  • About
  • Store
  • Luncheons
  • Testimonials
  • Contact Us
  • Click to open the search input field Click to open the search input field Search
  • Menu Menu

October 7, 2010 - The Double Play in First Solar

Diary

Featured Trades: (SOLAR ENERGY), (FSLR), (YGE), (STP)


3) The Double Play in First Solar. There is another angle to the solar play, which I bet you haven't thought of. I have been arguing that companies like First Solar (FSLR) are great proxy for oil, as any price rise in crude raises the breakeven point that alternative power generators must meet to be competitive on a non subsidized basis (click here for 'Solar Energy is Poised to Achieve Cost Parity').

I bet you didn't know that it is a currency play as well. First Solar's primary competitors are Chinese firms, like Suntech Power (STP) and Yingli Green Energy (YGE), whose costs are based in the Yuan. That was not a problem as long as the Yuan was fixed and the global recession caused polysilicon prices to collapse. Those days are now coming to a close. Any appreciation of the Chinese currency feeds directly into their overhead cost. Even just a 5% per year appreciation, the maximum rate which the Chinese government is thought to tolerate, could wipe out the razor thin margins these companies subsist on.

A cheap, long dated call on both oil and the Yuan? Given that I believe that we are in a long term bull market for both, I think you better be accumulating this company on dips. The upside surprises could be explosive.

FSLR07.png


solar07.jpg


baseball-gilesds.jpg

Setting Up for the Double Play in Solar

Share this entry
  • Share on Facebook
  • Share on X
  • Share on WhatsApp
  • Share on Pinterest
  • Share on LinkedIn
  • Share by Mail
https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png 0 0 Mad Hedge Fund Trader https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png Mad Hedge Fund Trader2010-10-07 01:40:542010-10-07 01:40:54October 7, 2010 - The Double Play in First Solar

tastytrade, Inc. (“tastytrade”) has entered into a Marketing Agreement with Mad Hedge Fund Trader (“Marketing Agent”) whereby tastytrade pays compensation to Marketing Agent to recommend tastytrade’s brokerage services. The existence of this Marketing Agreement should not be deemed as an endorsement or recommendation of Marketing Agent by tastytrade and/or any of its affiliated companies. Neither tastytrade nor any of its affiliated companies is responsible for the privacy practices of Marketing Agent or this website. tastytrade does not warrant the accuracy or content of the products or services offered by Marketing Agent or this website. Marketing Agent is independent and is not an affiliate of tastytrade. 

Legal Disclaimer

There is a very high degree of risk involved in trading. Past results are not indicative of future returns. MadHedgeFundTrader.com and all individuals affiliated with this site assume no responsibilities for your trading and investment results. The indicators, strategies, columns, articles and all other features are for educational purposes only and should not be construed as investment advice. Information for futures trading observations are obtained from sources believed to be reliable, but we do not warrant its completeness or accuracy, or warrant any results from the use of the information. Your use of the trading observations is entirely at your own risk and it is your sole responsibility to evaluate the accuracy, completeness and usefulness of the information. You must assess the risk of any trade with your broker and make your own independent decisions regarding any securities mentioned herein. Affiliates of MadHedgeFundTrader.com may have a position or effect transactions in the securities described herein (or options thereon) and/or otherwise employ trading strategies that may be consistent or inconsistent with the provided strategies.

Copyright © 2025. Mad Hedge Fund Trader. All Rights Reserved. support@madhedgefundtrader.com
  • Privacy Policy
  • Disclaimer
  • FAQ
Link to: October 7, 2010 - Wow! Have You Seen Thailand? Link to: October 7, 2010 - Wow! Have You Seen Thailand? October 7, 2010 - Wow! Have You Seen Thailand? Link to: October 7, 2010 - The Heads I Win, Tails You Lose Market Link to: October 7, 2010 - The Heads I Win, Tails You Lose Market October 7, 2010 - The Heads I Win, Tails You Lose Market
Scroll to top