The first play with First Solar (FSLR) did not work out, to say the least: stopped out at $115 after an initial buy recommendation at $184.50 on June 2, 2009. Talk about haircuts.

Well, the calculation here is that FSLR is now slightly undervalued at $116, but the qualifiers abound for this play, so attention is advised.

Shares of First Solar (NASDAQ: FSLR) have been pummeled this week, as analysts, starting with Citigroup (NYSE: C), downgrade the stock.

Previously, the stock had enjoyed high ratings, generally in the Buy or Accumulate range. With Citi leading the way, other analysts have followed suit with rating reductions.

Citi cited concerns regarding the amount of solar panel inventory waiting to be absorbed, along with worries about future demand.

By some estimates, only 10% of the solar panels in inventory at the end of the year will be taken up by the anticipated increased demand generated from the adoption of the Obama energy proposals. An additional 20% reduction of inventories is projected to result in 2010.

The market is not distinguishing among the companies in the solar panel manufacturing business. Regardless of the strength of an individual manufacturer, all are being treated with the same lack of enthusiasm by analysts and investors. A closer look at First Solar suggests that this should not be the case.

First Solar is a leading designer and manufacturer of solar modules using thin-film semiconductor technology, which converts sunlight to electricity. Based in Phoenix, Ariz., First Solar has long-term supply contracts with 12 European project developers and systems integrators.

The solar module industry has come into recent criticism for its impact on the environment. Concerns are being raised that the eventual disposal of solar panels will result in the emission of large amounts of greenhouse gasses as the semiconductors disintegrate.

First Solar, however, has established a model for extended producer responsibility, which creates an obligation of the producer to have policies and practice to ensure that the company takes responsibility for environmental consequences from cradle to grave. The company provides the purchaser of its products with a guarantee to take back all its panels at the end of their useful life.

First Solar has received acclaim for building concern for environmental impact into all phases of the manufacturing and recycling of its products.

FSLR stock is trading around $142 per share. Shares had rallied last week to $165 per share on the heels of President-elect Obama's energy proposals. The stock had increased in price by 76% from its 52-week low, and was approaching its 12-month target price of $167.70.

The sell-off of FSLR has been greatly overdone. The company's balance sheet is strong, with a long-term debt-to-equity ratio of 0.10 and a current ratio of 3.23. The 21.84% on equity should also be of comfort to investors.

An additional plus for FSLR is the likelihood of a push to solar energy as part of the job stimulus program of the new administration.

Louis Navellier's PortfolioGrader Pro, which rates Wall Street stocks, rates FSLR a B or Buy.

Jamie Dlugosch is a contributor to NavellierGrowth.com.

Toyota Motor Co.'s (NYSE: TM) Prius hybrid is by far the world's most successful hybrid vehicles, with sales numbering over one million units. In addition to the great gas mileage these gas/electric vehicles provide, could these cars become even more efficient? According to Toyota, that's already in the works.

The Japanese automaker was featured in Japan's Nikkei newspaper yesterday as saying it will begin installing rooftop solar panels on its next-generation Prius vehicles. Starting with the high-end model, these solar panels will be used to power the air conditioning systems of the car. According to the Nikkei report, these solar panel arrangements may start showing up as next spring.

If Toyota can pull this off, it will mark yet another milestone in automotive history: including solar panel technology in a mass-produced car. It could also set off a trend to power automotive subsystems directly from solar power instead of internally generated power from the gas engine/alternator system or the onboard electric motor. Solar power is abundant and free -- why not use it as much as possible?

Now, where are the other automakers with this? General Motors (NYSE: GM)? Ford Motor (NYSE: F)? A show of hands, please.