First Solar, Inc. (FSLR), American Eagle Outfitters (AEO), Abercrombie & Fitch Co. (ANF): Stocks to Get on Your Watchlist

On the other hand, we have Chinese solar manufacturers like Trina Solar, which are seeing sales buoyed by China’s pledge to introduce 35 GW of solar production by 2015. Trina Solar was able, in its most recent quarter, to boost its full-year production guidance to 2.3 GW to 2.4 GW which is about 15% higher than its previous estimates at the midpoint. Despite getting a lot closer to breakeven, it still needs to improve margins by more than five percentage points according to Foolish solar guru Travis Hoium, which is no easy task with increasing global competition, ongoing high panel supply, and nearly $1.2 billion in debt on its balance sheet .

In other words, I can understand the optimism surrounding these less-bad results, but in reality we’re still looking at a company that hasn’t even hit breakeven status yet that’s rallied more than 350% off its 52-week lows. That seems incredibly steep and almost utopian for a company that’s yet to prove it can compete with other global solar producers. If this rally continues higher, Trina Solar could make for an intriguing short-sale candidate.

The article 3 Stocks to Get on Your Watchlist originally appeared on Fool.com.

Fool contributor Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong.

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