In our Motley Fool CAPS
community, nearly 88% of the 1,114 investors rating the company are
bullish, so there's no shortage of reasons why Canadian Solar will
thrive, three of which I've highlighted below.
But here at The Motley Fool, we're all for looking at both the good
and bad sides of an investment. Once you're done with this article, you
can read the case against two-star Canadian Solar, weigh in with your own comments below, or rate Canadian Solar yourself in CAPS.
1. Global expansion
Europe continued to
be Canadian Solar's most important market in terms of sales in the
second quarter, but looking ahead, the company sees increasing
opportunity in other parts of the world. It strengthened its
relationship with LG to build solar power projects in South Korea, and
also set up a subsidiary in Japan to begin tapping that market. And CAPS members like the company's growing presence in China, where others like LDK Solar (NYSE: LDK), First Solar (Nasdaq: FSLR), and Evergreen Solar (Nasdaq: ESLR) have been looking to grow.
2. Gaining market share
Big growth in
orders in its second quarter helped Canadian Solar gain market share
over a crowded field of competitors. Despite challenging market
conditions in an uncertain environment that has peer Suntech Power (NYSE: STP)
lowering its shipping guidance, Canadian Solar expects the momentum to
continue and raised its own shipment outlook for the full year.
3. Improving efficiency
While JA Solar (Nasdaq: JASO) and ReneSola (NYSE: SOL) struggled with weak margins
in the second quarter, Canadian Solar reported a solid second quarter
with big improvement to its margins over the previous quarter. It was
helped by a lean operating structure, significantly reduced costs, and
a huge uptick in orders, which the company attributes to its
differentiation as an efficient and competitively priced supplier.
To see details of what CAPS members are saying now about Canadian Solar, just click on over to Motley Fool CAPS and have a look, or add your thoughts directly to this story in the comments box below.
And don't forget to check out the CAPS clouds hanging over Canadian Solar's stock.
© 2009 UCLICK, L.L.C.
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