Canadian Solar IPO has turned into a disaster (CSIQ)

The free fall continues for Canadian Solar Inc. (Nasdaq: CSIQ) as the stock went down another 11.68% to close the day at $10.59. The stock is down almost 30% from its IPO price of $15. The stock went up to $16.73 on its opening day before starting its free fall .
I am not sure what is going on behind the scenes here.
The underwriters were:
IPO Underwriters (Source: IPOHome)
- Deutsche Bank – Joint Lead Manager
- Lehman Brothers – Joint Lead Manager
- CIBC World Markets – Co Manager
- Piper Jaffray – Co Manager
The decline could also be because of the following reasons:
- The company is not profitable
- They only make Solar Panels.
- They buy solar cells from other manufacturers and assemble solar panels.
- As basically a solar panel assembler they don’t have any distinct advantages.
- Probably the worst solar stock out there among STP, SPWR, ESLR, FSLR, WFR among others.
- Five largest customer accounted for 91.2% of revenues for six months ended June 30, 2006.
- Competition seems to be increasing in the solar sector almost daily.
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