July 01, 2009  | about: FSLR / KWT / TAN

FSLR projects gross margins to erode slowly over time.

The risks to FSLR's business (and all of solar) will continue
increasing as the industry struggles to establish the transition
markets. We should expect this in any market that requires major
increases in capital investment and integrated and coordinated
infrastructures crossing many political boundaries. FSLR acknowledged
that it needs a convergence of economic and political forces to build
upon its current success. FSLR has a first-class handle on its
technology and manufacturing processes, and the company should remain
unrivaled for quite some time. However, there are many external forces
that are largely out of its control but critical to extending further
this technical prowess into market prowess.