Why Canadian Solar Stock Just Dropped 10%
Shares of solar module maker Canadian Solar (NASDAQ: CSIQ) were down 9.6% at 10:40 a.m. EDT on Thursday, and the company has only itself to blame. After today's sell-off, the stock has given up every bit of gain it has accrued since GLJ Research initiated coverage of it with a buy rating two weeks ago.
So what did Canadian Solar do to cause today's sell-off? Yesterday, after the close of trading, the company announced it will float $200 million worth of convertible senior notes due in 2025 (i.e., debt convertible into common stock).
Canadian Solar said it plans to use the money to fund "general corporate purposes, which may include the expansion of manufacturing capacity, development of solar power projects and working capital."
Source Fool.com
