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

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


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 -...
Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details