Why Canadian Solar's Shares Popped

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Canadian Solar (NASDAQ: CSIQ  ) jumped 13% today after signing a deal to expand manufacturing.

So what: The company agreed to partner with Samsung Renewable Energy to build a solar manufacturing facility in London, Ontario. The plant will begin construction in 2013 and will supply modules to plants like Samsung's 100 MW projects in Haldimand County and Kingston and Loyalist Township.  

Now what: This is a really great partnership for Canadian Solar and helps solidify it as one of the best manufacturers in China. Not a lot of details have been released about the financial impact this will have on Canadian Solar, and with the company reporting losses each quarter, I'm still leery, but strategically, this looks like a good move. Hopefully this will help push the company into profitability later this year or early next year on the back of higher utilization rates and stabilizing prices in the solar industry.

Interested in more info on Canadian Solar? Add it to your watchlist by clicking here.


Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2511959, ~/Articles/ArticleHandler.aspx, 10/1/2014 3:06:31 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement