Abdalla Al-ayrot
Long only, deep value, special situations

A Final Dead Cat Bounce Before The Big Crash In Canadian Solar?

Fundamentals:

Canadian Solar Inc. (NASDAQ:CSIQ) is another troubled solar company that is near financial distress because of the conditions on the solar market. The company is one of the losers in the Jobs Transformation Scheme.

Chart 1: Canadian Solar Net Income and Equity: 2009-2012

The company has been losing money for the last two years, like its peers. The company's equity has shrunken from $534 million to about $301.58 million. The company's net loss is in an up-trend, it keeps increasing. If the company continues to burn money at the current rate, it will have a negative equity by Q2 2014 - Q3 2014.

Chart 2: Canadian Solar Revenue, Shipments and Gross Margin: Q1 2010 -...
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