Stockchase Opinions

Jim Cramer - Mad Money Canadian Solar Inc. CSIQ-Q DON'T BUY Mar 22, 2021

He's cool on the solar energy space and predicts some of these names will not last.
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TOP PICK
Chinese-based solar panel manufacturer. Want to participate in the new Ontario feed-in tariff program and have a new Kitchener head office. With feed-in declines this industry is growing very effectively so solar is doing fine and this is a good company.
PAST TOP PICK
(A Top Pick Jan 15/10. Down 51.18%.) Got stopped out after he rode it up and it dropped sharply.
COMMENT

Solar panel manufacturer. A Canadian company with operations in Canada, but is basically a US company. They get a lot of their product out of China. However, there are a lot of strange cross currents. Very difficult to get information on this company. Very volatile.

DON'T BUY
They got hit hard when China when big into green tech a decade ago and flooded the market with solar panels. CSIQ was one of the big solar panel-makers. They also spun off their renewable energy assets. This stock is completely ethical, but the price of panels plunging hurts this stock.
DON'T BUY
Great job building out best-in-class solar panels. Issue is competition from China. Biden administration has suspended tariffs for 2 years, so facing more competition. He'd prefer BLX or NPI, which will benefit from price competition.
BUY ON WEAKNESS
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

Canadian Solar shipments rose 62% to 8.2 gigawatts of modules in 2Q, reaching the midpoint of guidance, and could rise more than 40% to 30-35 GW for the year due to global demand. Sales were roughly flat in 2Q at $2.4 billion, affected by pricing pressure that could also crimp 3Q sales despite guidance calling for higher volumes. Yet full-year guidance ($9-$9.5 billion) is still probably achievable. Gross margin expanded to 18.6% in 2Q vs. 16% a year earlier, yet was flat sequentially. The company's battery rollout, which has a robust utility-scale pipeline of about $2.1 billion in 2Q, could ramp up further as management expects annual production capacity to grow to 10 gigawatt-hours (GWh) from 2.5 GWh by year-end. For the quarter EPS of $2.39 beat estimates of $152, and sales of $2.36B missed estimates of $2.47B. 
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Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

TOP PICK
Stockchase Research Editor: Michael O'Reilly

Trading at 5x earnings, under book value and with an 18% ROE, CSIQ is a TOP PICK.  The 22 year old Guelph Ontario solar manufacturer recently reported earnings that doubled over year ago levels and a 39% increase in revenues.  We recommend a stop-loss at $21, looking to achieve $41 -- upside potential of 49%.  Yield 0%  

(Analysts’ price target is $41.08)
premium

This is a Panic-proof Portfolio opinion which is available only for Premium members

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

PAST TOP PICK
(A Top Pick Sep 12/23, Down 22.3%)Stockchase Research Editor: Michael O'Reilly

Our PAST TOP PICK with CSIQ has triggered its stop at $21.  To remain disciplined, we recommend covering the position at this time.

DON'T BUY

Lots of news and noise. Solar is not as green or as efficient as everybody thought. Massive demand coming on the power grid as AI, data storage, and population grow. Chart tells him that people are just as enthusiastic about that sector as he is, which is not very. Can't endorse the sector.