CSIQ - Canadian Solar: Too Cheap To Ignore

2024-01-25 13:37:09 ET

Summary

• Canadian Solar operates in a rapidly growing solar power market and trades at an appealing valuation.
• The solar industry's growth does not necessarily translate into stock growth due to commoditization and cyclical nature.
• The company's latest results were disappointing, and guidance was lowered, but the stock remains too cheap to ignore.
• CSIQ trades at a third of the value of its stake in the Chinese subsidiary CSI Solar.

Dear readers,

Canadian Solar Inc. ( CSIQ ) is a solar power company, which manufactures solar panels and energy storage solutions. It's worth a look because it operates in a rapidly growing market and trades at a very appealing valuation. At the same time, however, it's important to assess the risks on this one, because, despite the fact that the company is Canadian-based, I believe it is essentially a Chinese company with several question marks over its governance....

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