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.
Posted on Monday, December 4th, 2006 at 5:33 pm
In Solar Stocks |
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December 5th, 2006 at 7:18 am
It seems quite certain that they will loose money simply because they make only solar panels and the rate of competition increases daily in solar energy sector.
However if you invest in our company, be assured that you would make huge profit due to the fact that we purchase the best panels with the highest efficiency(BOEING-SPECTROLAB panels) and we build PV Power Plants in an area like Greece which has 3.000 hours per year sunshine. In addition to that we sell each KW/h 0,46 euro cent fixed for 20 years and we receive Grant from the EC equivalent to 45% of the total investment.