Canadian Solar Inc. (NASDAQ: CSIQ)
Canadian Solar Inc. (CSIQ), a solar power company on Tuesday announced the completed sale of their Illumination Solar Plant to an affiliate of DIF Infrastructure III (DIF). The sale was valued at $48.4 million. Canadian Solar also announced that it has secured an additional $80 million in a term loan with Credit Suisse. Bringing the total amount borrowed to $180 million. All this news is coming off of the Paris Climate Conference Agreement which will ensure increased demand for renewable energy sources in the future. Which has proved a big boon to the whole solar sector.
Canadian Solar Inc. CEO Comments
Comments regarding sale of Solar Plant:
Dr. Shawn Qu, Chairman and Chief Executive Officer of Canadian Solar, commented,
“We are pleased to announce the sale of Illumination LP to DIF. This marks the third transaction closed between Canadian Solar and DIF, and we thank them for their continued partnership.” PR Newswire
Comments regarding term loan from Credit Suisse:
“We are pleased with the positive outcome of this transaction and we appreciate the confidence of the lenders in our business,” said Dr. Shawn Qu, Chairman and Chief Executive Officer of Canadian Solar. “The buildout of our high value solar project pipeline in the U.S. as well as other markets is proceeding according to plan, positioning us well to create lasting value for our shareholders in the quarters ahead.” PR Newswire
CSIQ Technical Analysis
CSIQ gapped up in price yesterday to $27.00, up from the prior day’s close of $25.40, which is a 6% increase on the favorable news. Taking a look at the daily chart, we can see the last time CSIQ traded above this price level was on July 29th, when it traded at $27.21. Taking a closer look at the daily chart, we can see that CSIQ has been on an overall upswing dating back to September 28th when it traded at $15.50. The next significant resistance level for the stock should be at $30. With the positive news for the whole solar sector coming from the Paris Climate Conference Agreement, I would expect the $30 price level to be tested. CSIQ has a float of 42.55 million shares and was trading 1.5 times the normal daily trading volume. CSIQ did open at its pre market highs. For trading purposes, my entry point would have been $27.10 looking for a run to $29. My stop loss would have been $26.90, fearing anything below that and the stock would start to fill in the gap up.
Company Profile
Canadian Solar Inc., together with its subsidiaries, designs, develops, manufactures, and sells solar wafers, cells, and solar power products worldwide. The company operates in two segments, Module and Energy. Its products include various solar modules that are used in residential, commercial, and industrial solar power generation systems. The company also provides specialty solar products consisting of Andes Solar Home System, an off-grid solar system, designed to provide an economical source of electricity to homes and communities without access to grid; and Maple Solar System, a clean energy solution for families, as well as solar system kits, which are a ready-to-install packages, such as inverters, racking system, and other accessories. In addition, it develops, builds, and sells solar power projects; performs the engineering, procurement, and construction (EPC) work for the solar projects; and offers operation and maintenance services that include inspection, repair, and replacement of plant equipment, site management, and administrative support services. The company sells its products under the CanadianSolar and CSI brand names. It offers its products to distributors, system integrators, project developers, and installers/EPC companies. Canadian Solar Inc. was founded in 2001 and is based in West Guelph, Canada. Yahoo Finance
