3SOF

$19 shouldn't be too far.

No, 19 wasn't that far off.   

This is unbelievable!

Solar Sees Increased Attention
on Energy Bill
Tuesday's session saw continued talk of Fed rate cuts, financials
seeing increased selling pressure, speculation regarding
gaming consolidation, and solar names on the rise again. This
alternate energy sector saw a barrage of news from many located
in the China market which spilled over into a sympathy
related rally for the whole space.
Solarfun Power Holding Company Limited (SOLF) began the rally when shares gained over 39%
following news that the Company had reached an agreement with Good Energies Inc., a renewable
energy investor, to sell some 66.7 million ordinary shares and 281,011 American Depository
Shares to the investor. Included in the investment were almost 50% of the shares held by
SOLF's chairman and CEO, Yonghua Lu. It was noted that Lu would retain a 16.1% stake in the
Company. The deal effectively raises Good Energies' holdings to 34.7% from only 6.3% of the
Company before the deal. It also will allow Good Energies to have additional control of the board
of directors.
The deal left some investors worrying about the CEO's faith in the Company. There aren't many
instances of CEO's liquidating 50% of their holdings. Even rarer was the security gaining over
40%.
Canadian Solar Inc. (CSIQ) also was in on the action as speculation circulated of a potential
partnership circulated the floors. The Company has been highlighted a few times with their growing
top line and more recently by raising $75 million in a 144A private placement. Shares gained
some 17% on the day with over 5 million shares traded.
LDK Solar Co Ltd (LDK) shares saw a 31% increase on Tuesday. The Company had become
embattled in an inventory disagreement with a former employee. Shares had seen their price fall
from highs of over $75 in late September to lows in the $26 area in late November. On November
15th the Company announced guidance for sales of $165 to $170 million. Earnings were
expected to be between 37c and 41c.
No official news had been reported over the past few days but a story circulated that noted the
Company had raised some $700 million in debt and had retained all of their customers throughout
the inventory discrepancy. The Company earlier had noted that the investigation into inventories
reporting had continued. They were expected to announce their findings in early December. With
that on the horizon, the shares could see additional attention.
Also contributing to the heightened attention to the sector was the proposed energy bill. The
legislation was seen as a negative catalyst last month as news that the Democrats were proposing
a stripping out of alternative energy tax cuts to gain favor of the Republicans to override any
presidential veto. With the bill possibly being on the agenda in the coming days, investors would
certainly be wise to watch many in the solar area.

Solar Sees Increased Attention
on Energy Bill
Tuesday's session saw continued talk of Fed rate cuts, financials
seeing increased selling pressure, speculation regarding
gaming consolidation, and solar names on the rise again. This
alternate energy sector saw a barrage of news from many located
in the China market which spilled over into a sympathy
related rally for the whole space.
Solarfun Power Holding Company Limited (SOLF) began the rally when shares gained over 39%
following news that the Company had reached an agreement with Good Energies Inc., a renewable
energy investor, to sell some 66.7 million ordinary shares and 281,011 American Depository
Shares to the investor. Included in the investment were almost 50% of the shares held by
SOLF's chairman and CEO, Yonghua Lu. It was noted that Lu would retain a 16.1% stake in the
Company. The deal effectively raises Good Energies' holdings to 34.7% from only 6.3% of the
Company before the deal. It also will allow Good Energies to have additional control of the board
of directors.
The deal left some investors worrying about the CEO's faith in the Company. There aren't many
instances of CEO's liquidating 50% of their holdings. Even rarer was the security gaining over
40%.
Canadian Solar Inc. (CSIQ) also was in on the action as speculation circulated of a potential
partnership circulated the floors. The Company has been highlighted a few times with their growing
top line and more recently by raising $75 million in a 144A private placement. Shares gained
some 17% on the day with over 5 million shares traded.
LDK Solar Co Ltd (LDK) shares saw a 31% increase on Tuesday. The Company had become
embattled in an inventory disagreement with a former employee. Shares had seen their price fall
from highs of over $75 in late September to lows in the $26 area in late November. On November
15th the Company announced guidance for sales of $165 to $170 million. Earnings were
expected to be between 37c and 41c.
No official news had been reported over the past few days but a story circulated that noted the
Company had raised some $700 million in debt and had retained all of their customers throughout
the inventory discrepancy. The Company earlier had noted that the investigation into inventories
reporting had continued. They were expected to announce their findings in early December. With
that on the horizon, the shares could see additional attention.
Also contributing to the heightened attention to the sector was the proposed energy bill. The
legislation was seen as a negative catalyst last month as news that the Democrats were proposing
a stripping out of alternative energy tax cuts to gain favor of the Republicans to override any
presidential veto. With the bill possibly being on the agenda in the coming days, investors would
certainly be wise to watch many in the solar area.

I'm glad to get the Debt offering Price out of the way.   (about 4 million shares of dillution; not too bad.)


Canadian Solar Prices $75M Debt Offer
Wednesday December 5, 10:57 am ET
Canadian Solar Prices $75 Million Debt Offering at Initial Conversion Price of $19.76 a Share

NEW YORK (AP) -- Canadian Solar Inc. has priced an offering of $75 million worth of convertible senior unsecured notes at an initial conversion price of about $19.76 per share, the solar-products maker said Wednesday.

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Canadian Solar will allow the notes to be converted at a rate of 50.6073 shares per $1,000 in notes, which will mature Dec. 15, 2017. The notes will bear interest at an annual rate of 6 percent.

In certain circumstances, Canadian Solar may redeem any or all of the notes on or after Dec. 24, 2012, and holders may require Canadian Solar to repurchase their notes for cash on that date or Dec. 15, 2014. Upon certain changes, including a change in control, Canadian Solar must make an offer to holders to purchase all of their notes.

Canadian Solar will use net proceeds for working capital, general corporate purposes and potential future acquisitions.

Its shares rose 54 cents, or 2.9 percent, to $19.24 in morning trading.

I'm glad to get the Debt offering price out of the way (only about 4 million shares dilution)

Canadian Solar Prices $75M Debt Offer
Wednesday December 5, 10:57 am ET
Canadian Solar Prices $75 Million Debt Offering at Initial Conversion Price of $19.76 a Share

NEW YORK (AP) -- Canadian Solar Inc. has priced an offering of $75 million worth of convertible senior unsecured notes at an initial conversion price of about $19.76 per share, the solar-products maker said Wednesday.

ADVERTISEMENT
Canadian Solar will allow the notes to be converted at a rate of 50.6073 shares per $1,000 in notes, which will mature Dec. 15, 2017. The notes will bear interest at an annual rate of 6 percent.

In certain circumstances, Canadian Solar may redeem any or all of the notes on or after Dec. 24, 2012, and holders may require Canadian Solar to repurchase their notes for cash on that date or Dec. 15, 2014. Upon certain changes, including a change in control, Canadian Solar must make an offer to holders to purchase all of their notes.

Canadian Solar will use net proceeds for working capital, general corporate purposes and potential future acquisitions.

Its shares rose 54 cents, or 2.9 percent, to $19.24 in morning trading.

applauds to everybody for this pick awesome, next entry point is....?

la-onda-

I would say it depends on the sector.  If solar takes a dip, then you will certainly get a much better price..15s or 16s maybe? 

But if solar continues to rally and yesterday didn't mark the end of any trend, then I think CSIQ is one of the leaders.  Compare revs to SOLF, and you'll see if they can improve margins the stock's value will be unlocked a great deal.

Now that I look at it, though, pretty much everyone in the sector is showing weakness and CSIQ has a small gain.  I'd say that is bullish.  CSIQ is certainly justified in a run to the $20s if you ask me.

I've never heard of an offering being above the all time high.  We came out of this beautifully...

I take this as excellent news.  CSIQ up today while every other solar I follow is lower (other than JASO, which is also up marginally).

As I've typed this post, it is actually coming down...looking to hold support at 18.50.  Like this stock though regardless of outcome today.  I'll wait for more of the value to be unlocked.  Would be awesome if the rumors about STP a couple days ago are true.  Don't really know what the rumor involved, but any kind of partnership with a top dog in the industry would be thumbs up.

nice close

CSIQ cream of the crop in the solar industry.  I personally believe it will catch up to SOLF market cap.

this is called "break out"

CSIQ continues to be on fire and is only starting to show overbought.

I think CSIQ will show some weakness when the sector does, but it is so much cheaper than everything else that it should outperform. 

Here's a chart.

CSIQ continues to one of the most volatile and best performers in the solar group.

The #s tell the story.  If the solar sector stays intact the rest of the afternoon, I think CSIQ will make a new all time high.

I bought 1/2 position of CSIQ at $22.50.  Will wait for the 9ema to catch up to price to buy more.  (if it ever does)