Historically, tumultuous times offer some of
the best opportunities to buy stocks, and the market's
recent mess surely qualifies. There's much debate about which
companies hold the best prospects, but many investors think
solar cell maker
Canadian Solar (Nasdaq: CSIQ) is one of
them.
In our
Motley Fool CAPScommunity, 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 againsttwo-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 marginsin 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
nowabout Canadian Solar, just click on over to
Motley Fool CAPSand 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 overCanadian Solar's stock.
This article was originally published as
3 Reasons to Buy Canadian Solar Todayon
Fool.com
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