Thursday, April 22, 2010

FSLR Analysis and Update Post Earnings and PFF ratio Explanation ..

Thursday morning before market open breaking news:
*DJ First Solar Raised To Buy From Hold By Deutsche Bank - >FSLR
*DJ First Solar Raised To Outperform From Neutral By Baird
POTC vehemently disagrees with Deutsche Bank and Baird's positive outlooks on FSLR.

POTC sent a follow-up e-mail to all subscribers advising to buy 3.5% of your trading portfolio after FSLR rises the day after earnings, that advice turned out to be excellent when we look back, congrats to all and thanks for the e-mails. Many more good calls are ahead of us. Please tell a friend or family member about our GS short call as well as our short BIDU call at $710 above. PFF ratio involves dozens of hours of conference call rewinds, technical, fundamental, and political/policy analysis (where applicable), and often times hidden psychological facts analysts overlook due to heavy workloads or a monolithic buy and hold mindset.

RIMM was a perfect example of analysts "falling in love" with a heavyweight type of stock, the 5th Commandment teaches us to never behave that way. Then we witnessed their frustrations as they raised price targets after RIMM missed the quarter. BIDU was an example in the opposite direction, and POTC was correct in both cases. The 6th Commandment states, "never accept excuses from management", except for Goldman's Ms. Jankowski, most of the analysts went in and stayed bullish on RIMM.

BIDU was an excellent PFF ratio candidate in that many analysts and talking heads missed gaping technical, fundamental, and political facts in our professional blogging opinion (iopbo).

CNBC's, Fast Money program, Tim Seymour recommended selling BIDU ahead of their last earnings report, and we recommended the $460 calls when shares were at $430. Pete Najarian was bullish on RIMM ahead of earnings as well, both lost money and our PFF ratio trade alerts proved correct. Credit to Tim Seymour on RIMM though, he was negative ahead of the Q4 report and remains negative.

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