It’s no stretch to say that the market’s a little bit volatile these days. The Dow staggered further downward, despite another significant drop in the price of oil. Traditionally reliable companies like General Motors are continuing to post record losses, and even some of the world’s strongest banks in the recent crisis are starting to suffer. However, increased inflation on the US dollar, and historically low federal interest rates continue to pressure American businesses and individuals to find investment options to keep their money accruing value over the long term.

There’s also tremendous interest in investing in greener businesses. Aside from the attraction of providing financial backing to industries and firms that coincide with a sustainable world outlook, the environmental sector is widely predicted to be one of the most active over the next few years. And with high oil prices, carbon taxes, and other price increases hitting conventional energy sources, green energy could turn out to be a very profitable investment as well.

But how to tell the next Google from the next theglobe.com? Despite the buzz over the green sector, there are generally very few clean energy companies receiving endorsements from major investment firms. But one company, First Solar, has begun to distinguish itself, bringing in impressive earnings and becoming one of the few solar companies to receive a “buy” rating from investment banking giant Merrill Lynch. 

It’s not hard to see why: First Solar began 2007 trading at $28 a share, and is currently selling at $267, a time period during which the SP 500 actually lost value. Merrill Lynch analysts continue to expect powerful growth from the firm, setting a price objective of $350, and upping earnings-per-share predictions. Like many American firms doing business with Europe, a weak dollar has made it an attractive purchase, especially in countries where governments provide incentives to encourage solar purchases, and sales volumes are outstripping predictions, returning impressive results for the second quarter of 2008.

Far from being a recent green-boom darling, though, First Solar was founded in 1999, and makes thin-film cadmium telluride solar cells. While more efficient photovoltaic technologies exist, the lower cost and larger range of operating conditions more than make up the difference. As a result, the company delivers an industry-best cost-per-watt. While past growth has been impressive, the firm’s investment in a less-cost-intensive production facility in Malaysia, scheduled to go on line at the end of this year, along with long-term foreign and domestic contracts worth nearly 6 billion dollars, establish it as a strong longer-term consideration in a burgeoning industry.

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