jbde

Canadian Solar Swoons, Despite Beat and Raise

Let's see, hmmm.
Stock was up 16% the day before [8/12] - due to supplier LDK's report
Ended on high of the day [8/13] after its report
Moving higher today [8/14] they said several times in confernece call that they purposely understate projections
Since i bought in at 26.47 on 8/5 - I like this kind of pounding
My target - 35 in this move [1 to 2 weeks], I hold 1440 shares.

CSIQ has low gross margins compared to rest of industry as they purchase doped cells from others - thus their value added is less.
While they build out polysci and cell doping lines, they have strongly ramped module lines and filling most of the capacity with components from suppliers. They said they will always have extra module capicity in order to meet dmeand spikes of customers by buying fininshed cells from suppliers. As they ramp polysci production and begin to rely more on their own wafers and doping, their margins will continue to expand as the percentage of in house cells increases over those purchased. Is such a balanced approach reasonable? It is more conservative, but also more stable as they can adjust module production to meet demand.