• 3 minutes Shale Oil Fiasco
  • 7 minutes "Leaked" request by some Democrats that they were asking Nancy to coordinate censure instead of impeachment.
  • 12 minutes Trump's China Strategy: Death By a Thousand Paper Cuts
  • 16 minutes Global Debt Worries. How Will This End?
  • 5 hours DUMB IT DOWN-IMPEACHMENT
  • 3 hours Everything you think you know about economics is WRONG!
  • 8 hours Greta named Time Magazine "Person of the Year"
  • 2 hours POTUS Trump signs the HK Bill
  • 13 hours Forget The Hype, Aramco Shares May be Valued At Zero Next Year
  • 2 hours Tories on course to win majority
  • 2 hours Winter Storms Hitting Continental US
  • 12 hours americavchina.com
  • 18 mins WTO is effectively neutered. Trump *already* won the trade war against China and WTO is helpless to intervene
  • 24 hours Can Renewable Natural Gas Compete With Diesel?
  • 13 hours Aramco Raises $25.6B in World's Biggest IPO

Time To Get Back Into Canadian Solar

Longtime, regular readers with the memory of an elephant may remember an article that I wrote in May of last year. That piece suggested that even though solar power stocks had fairly consistently failed to live up to expectations, the ridiculously low valuations at the time made a couple of them worth buying. One of those suggestions was Canadian Solar (CSIQ).

In that article, as is my wont, I also suggested parameters for the trade; a stop loss just below $20, which was never reached, and a price target of $37, which, as it happens, was actually about 10 percent away from the top and represented a profit of over 50% in just over three months. Most of the time, when a trade idea is that successful the sensible thing to do is to walk away from the stock and never look at it again. In this case, though I will make an exception.

There are two basic reasons for this exception, one fundamental and one technical.

As always, fundamentals come first. Part of the reason for the initial pick was that it seemed that CSIQ was seriously undervalued for a company with good growth prospects. Even my optimistic expectations for growth, however, have since been proven to be way too pessimistic. Over the last year, Canadian Solar have reported revenues that represent an 89% annual growth rate! As is usually the case in this industry, margins have been tight, but growth like that cannot, you would think, be ignored by the market.

You would think that, but you would…




Oilprice - The No. 1 Source for Oil & Energy News