Chinese Solar Stocks Bounce on New Wafer Venture (CSIQ, LDK, JASO, STP, YGE, TSL, JKS)
Shares of Canadian Solar (CSIQ), the Canadian solar firm that mainly operates in China, are soaring 4% after the company announced it formed a joint venture to build a 600 megawatt wafer facility in eastern China with a division of GCL-Poly Energy holdings. The total cost for the first phase of the project will be $77 million and the majority will be financed through debt, while the rest will be financed through registered capital, Reuters reported, citing the company.
Investors seem to like the news as the Chinese Solar Stocks Index is surging 4%. The Index has tumbled almost 15% in the past month.
Canadian Solar said its wafer plant will help it reach two gigawatts of internal solar capacity by the first quarter of next year. Even with that news, Canadian Solar is not the top performer in the Index today. That honor belongs to LDK Solar Company (LDK), which is surging 8%, despite seeing its price target cut to $15 from $21 by Needham. The research firm believes short-term liquidity concerns are overblown and said the risk/reward on the stock is now favorable. Needham reiterated a “buy” rating on LDK.
Investors can track the Chinese Solar Stocks Index for performance trends and a suite of other metrics at tickerspy.com.
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Canadian Solar Inc. (NASDAQ: CSIQ): Q1 Earnings Preview 2011 (Stock Wizard, 5/10/11)
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