Why Canadian Solar's 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 10% today after the company announced a major supply agreement.
So what: Canadian Solar will supply 91 MW of modules by the end of the year to Soleq Solar for a solar power plant in Thailand. This is a big development because the company is trying to reduce reliance on Europe and with growth in Japan last quarter and now Thailand in the remainder of 2013, the company is in a better position than many competitors.
Now what: We don't know what the pricing of modules will be, but Canadian Solar has been among the most aggressive Chinese solar companies in expanding beyond the traditional sales channels. That allows the company to have knowledge in major projects, like this one, that few low-cost suppliers can provide. Canadian Solar is in the best strategic position of the Chinese solar module suppliers and today's announcement is a step toward turning that into a profit.
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The article Why Canadian Solar's Shares Jumped originally appeared on Fool.com.Fool contributor Travis Hoium has no position in any stocks mentioned, and neither does The Motley Fool. 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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