$CSIQ – Canadian Solar Inc. – last closed at 19.03 – Bullish (medium – long term)
Canadian Solar Inc. is a solar power company, which designs, develops and manufactures solar wafers, solar cells and solar power products. The Company’s solar power products include standard solar modules and specialty solar products. It has two segments: module segment and energy segment. Its products include a range of solar modules for use in residential, commercial and industrial solar power generation systems.
The 5.9% ownership of Canadian Solar Inc., by DNB Asset management AS came into light with its 13G disclosure. Canadian Solar has good fundamentals with 50-day moving average price at $25.17 and its 200-day moving average price at $22.72. The company has a market cap of $1.09 billion and a PE ratio of 6.16.
The growth of the Solar industry has surged in the last fiscal year. With the residential market growing 69% year over year, setting a new quarterly record. A U.S. Energy Information Administration (“EIA”) report projects that electricity generation from renewable sources to increase to 18% by 2040 in the country from 13% in 2013. For 2016, EIA expects total renewables used in the electric power sector to increase by 9.5%.
But we shall have to look out for the competition from the renewable energy sources which are now trading at the lower band.