Why Canadian Solar Shares Jumped
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Canadian Solar jumped as much as 11.5% today after the solar module maker announced a supply deal.
So what: The company announced a deal to provide 84,480 solar modules to National Renewable Energy that will be used to build four utility-scale projects in North Carolina. The projects are intended to total 25.3 megawatts; at $0.65 per watt this would be about $16.4 million in incremental revenue for Canadian Solar.
Now what: Chinese solar stocks are up big today so this is something a rising of the tide for the industry. While I like the project, it's business as usual for Canadian Solar, which also builds projects that generate far more revenue than module supply contracts. I don't think this announcement alone is a reason to change your investment thesis, but Canadian Solar remains among the best Chinese solar companies over the long term.
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Fool contributor Travis Hoium has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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