Buy Alert: January 6, 2014

Marcus Haber | January 6, 2014

Buy Alert: January 6, 2014

Trade Details

Buy First Solar (FSLR) February $60 Calls for $1.40 or better

Why?

FSLR shares dropped nearly 10% today on a downgrade from Goldman Sachs. Apparently, the analyst at Goldman doesn’t believe the company has enough exposure to the rooftop solar panel market, which is experiencing rapid growth.

I don’t buy it. It’s true that First Solar is more focused on utilities, but that’s where the big money projects are. And, the company has been performing extremely well of late. 2014 is going to be a big year for solar, and FSLR is one of the undisputed leaders.

After today’s plunge, the shares have become very attractive to bargain hunters. I believe investors will jump into FSLR ahead of next month’s earnings. Let’s grab the February $60 calls here ahead of the crowd.