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Why Canadian Solar Shares Popped

By Travis Hoium - Jan 2, 2014 at 3:15PM

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Is this meaningful or just another movement?

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 (CSIQ -3.55%) jumped 14% today after the company announced the sale of a solar power plant.

So what: The company completed the sale of the Mississippi Mills facility to TransCanada (TRP 0.60%) for C$61.0 million, or $57.4 million. This is a 10-megawatt plant and the fourth of nine projects totaling 86 megawatts that will be built for TransCanada for C$500 million.  

Now what: This is a nice step forward, but it's also business as usual for Canadian Solar right now. The company is a large project builder, especially in Canada, and these sales should be expected from time to time. The stock jump was assisted by a sharp rise in most solar stocks today, so don't read too much into Canadian Solar's pop.

Fool contributor Travis Hoium has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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Stocks Mentioned

Canadian Solar Inc. Stock Quote
Canadian Solar Inc.
CSIQ
$39.93 (-3.55%) $-1.47
TC Energy Corporation Stock Quote
TC Energy Corporation
TRP
$50.57 (0.60%) $0.30

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