Can Canadian Solar Inc. (NASDAQ:CSIQ) Do Better in 2017?

Canadian Solar Inc. (NASDAQ:CSIQ)

Canadian Solar Inc. (NASDAQ:CSIQ), like many other solar companies, had a tough year in 2016.  Can 2017 be better?

Canadian Solar is due to report its 4Q16 earnings on March 9, which might provide clues about how 2017 could turn out to be for the company. In 2016, the company struggled with tepid demand for solar panels because of a shortage of incentives to solar buyers from governments. Additionally, oversupply of panels led prices lower, making it difficult for panel manufacturers to meet their growth projections.

As a result, Canadian Solar Inc. (NASDAQ:CSIQ) posted downbeat earnings for 3Q16, its most recent quarterly report. Revenue of $657.3 million came short of consensus estimate by $28 million. Furthermore, the revenue declined 23% from a year earlier. Soft demand for panels and weak pricing environment contributed to the revenue shortfall.

That led Canadian Solar Inc. (NASDAQ:CSIQ) to report EPS of $0.27, barely in-line with the consensus estimate.

The troubles in the solar industry in 2016 were also responsible for the nearly 60% drop Canadian Solar’s share price in the year. However, in what signals a positive start to 2017, shares of Canadian Solar Inc. (NASDAQ:CSIQ) are already up more than 25% so far this year. The stock rose nearly 9% to $15.36 in the last session.

Hope for a better 2017

The gains in the stock seem to stem from investors growing more optimistic that 2017 will be a better year for Canadian Solar Inc. (NASDAQ:CSIQ). Part of the reason for optimism comes from expectations that Canadian Solar will find good market for the various projects it has earmarked for sale.

Instead of creating a yieldco, Canadian Solar said it would monetize about $2 billion worth of project assets. It has sold several projects already, including recent sale of three utility-scale solar farms to a unit of Fengate Real Asset Investments. The transaction involving the three solar farms was valued at more than $195 million. Canadian Solar said gains from the transaction will be reflected in its 1Q17 results.

But Canadian Solar Inc. (NASDAQ:CSIQ) has more assets to monetize. About $1.2 billion worth of project assets remain to be sold.

The sale of the assets will yield cash that Canadian Solar can funnel to more growth in 2017 or distribute to shareholders. The cash injection from assets monetization would also ease pressure on Canadian Solar in case recovery in solar industry remains slow in 2017.

Industry growth

Though 2016 was a tough year for solar companies, solar power industry is expected to continue growing thanks to regulatory requirements around greenhouse emissions. Falling panel prices is also expected to encourage uptake of solar power system, leading to more demand for Canadian Solar Inc. (NASDAQ:CSIQ) products and projects.

Canadian Solar Inc. (NASDAQ:CSIQ) has several projects in the pipeline.

2/21/2017
Ticker Symbol CSIQ
Last Price a/o, 4:02PM EST  $                       15.36
Average Volume (mlns)                    1.27
Market Cap (mlns)  $                  837.89
Sales (mlns) $3.30
Shares Outstanding (mlns) 54.55
Share Float (mlns) 45.25
Shortable Yes
Optionable Yes
Inside Ownership 31.00%
Short Float 12.31%
Short Interest Ratio 4.4
Quarterly Return 31.51%
YTD Return 26.11%
Year Return -26.86%

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

About the author: Monica Gray has an undergraduate degree in Accounting and an MBA – earned with Honors. She has six years of experience in the financial markets and has been a securities analyst for the past two years.

Southcross Energy Partners, L.P. (NYSE:SXE) Shares Pushing Back Against Analysts

Southcross Energy Partners, L.P. (NYSE:SXE)

Southcross Energy Partners, L.P. (NYSE:SXE) shares are up over 15% on heavy volumes. SXE ended yesterday’s trading at $2.26 but hit a high today of $2.74 – a 20% move. The uptick came in conjunction with volumes nearing 880k thousand shares – average daily volumes are under $200k.

Dallas, TX-based Southcross Energy Partners, L.P. (NYSE:SXE) is a master limited partnership that provides natural gas gathering, processing, treating, compression and transportation services and NGL fractionation and transportation services. It also sources, purchases, transports and sells natural gas and NGLs. Its assets are located in South Texas, Mississippi and Alabama and include two gas processing plants, one fractionation plant and approximately 3,100 miles of pipeline.

Southcross Energy Partners, L.P. (NYSE:SXE) did not fare well in 2015. SXE shares dropped from just over $20 to less than $1. In 2016, four notable financial firms downgraded the shares. However for the past quarter, SXE is up over 66%; for the past year SXE is up 276%; and for year-to-date SXE shares are up over 67%.

On January 9, 2017 Southcross Energy Partners, L.P. (NYSE:SXE) announced a change in leadership. Bruce A. Williamson, currently the Executive Chairman of Holdings and a director of the Southcross general partner, was been named President and Chief Executive Officer of both Holdings and Southcross’ general partner. Mr. Williamson has over 35 years of experience encompassing all facets of the energy value chain with Shell Oil Company, PanEnergy Corporation, Duke Energy, Dynegy, and Cleco Corporation.  He also brings a strong record of accomplishment as a CEO delivering shareholder value through transformation, restructuring, capital allocation, asset transactions and mergers.

Southcross Energy Partners, L.P. (NYSE:SXE) sales dropped from 2014 ($848.5 million) to 2015 ($698.5 million) but are still above levels experienced between 2011 and 2013. Earnings on a per share basis have been negative for the past five years with 2015 reporting a loss of $1.32.

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

2/16/2017
Ticker Symbol SXE
Last Price a/o 3:22 PM EST  $                      2.66
Average Volume                    198,800
Market Cap (mlns)  $                  140.05
Sales (mlns) $554.80
Shares Outstanding (mlns) 61.97
Share Float (mlns) 10.27
Shortable Yes
Optionable Yes
Inside Ownership 0.50%
Short Float 1.40%
Short Interest Ratio 0.72
Quarterly Return 66.18%
YTD Return 67.41%
Year Return 276.67%

Superconductor Technologies Inc. (Nasdaq:SCON) Experiencing Massive Volumes

Superconductor Technologies Inc. (Nasdaq:SCON)

Shares of Austin, TX-based Superconductor Technologies Inc. (Nasdaq:SCON) are up over 30% on over 65 times normal average daily volumes. In November, Superconductor Technologies Inc. (Nasdaq:SCON) shares skyrocketed when the company was awarded $4.5 million for its Next Generation Electric Machines program by the U.S. Department of Energy’s Office of Energy Efficiency and Renewable Energy. Superconductor Technologies Inc. (Nasdaq:SCON) is developing and producing High Temperature Superconductor, or HTS, wire that bears the potential to revolutionize the electric power industry.

Yesterday, Superconductor Technologies Inc. (Nasdaq:SCON) was awarded a U.S. Patent enabled by STI’s superconducting wire manufacturing method. This patented process improves Conductus wire’s performance in the presence of a strong magnetic field. The properties of HTS allow wire to conduct electricity more efficiently from traditional copper wire through cooling power transmission to “critical” temperatures. Superconductor Tech markets its patented HTS technology under the brand name Conductus. HTS has the potential to revolutionize the Smart Grid market of generating and transmitting electricity in the United States.

Jeff Quiram, STI’s President and CEO stated in a press release “This new patent protects the foundation from which we will build high performance wire for our customers. The flexibility provided by our proprietary manufacturing process enables STI to build superconducting wire in very unique ways.”

Sales have declined YoY for Superconductor Technologies Inc. (Nasdaq:SCON). In 2011 and 2012 reported sales were $3.5 million. However, shareholders have seen steady improvement in earnings per share. In 2011, there was a loss of $75.69, followed by narrower losses and in 2015 the loss was $6.55.

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

2/16/2017
Ticker Symbol SCON
Last Price a/o 10:23 AM EST  $                      1.48
Average Volume                1,250,000
Market Cap (mlns)  $                      5.91
Sales (mlns) $0.10
Shares Outstanding (mlns) 5.14
Share Float (mlns) 4.37
Shortable Yes
Optionable No
Inside Ownership 3.10%
Short Float 14.41%
Short Interest Ratio 0.5
Quarterly Return -9.29%
YTD Return -6.50%
Year Return -61.67%

Sky Solar Holdings Ltd. (Nasdaq: SKYS) Report Earnings and Shares Gain 50%+

Sky Solar Holdings, Ltd. – Nasdaq: SKYS

Shares of Sky Solar Holdings (Nasdaq: SKYS) rocketed this morning – at one point trading at double yesterday’s closing price. The Hong Kong based firm announced its financial results for the third quarter of 2016 ended September 30, 2016. Among the Q3 2016 highlights were: total revenue up 93.4% over same period last year; electricity revenue up 58.8% over same period last year; adjusted EBITDA up over 466% over same period last year; and a plethora of solar projects in the pipeline.

Shares of Sky Solar Holdings (Nasdaq: SKYS) ended yesterday at $1.79 but the financial release sent the shares gapping up to open at $2.81 and they reached a high of $3.62 before pulling back below $3. Average volumes for SKYS were posted at just over 37k, but today volumes are already over 6.7 million before lunch.

Sky Solar Holdings is a global independent power producer that develops, owns, and operates solar parks around the world. The company has a broad geographic reach and established solar parks in Asia, South America, Europe, North America, and Africa. Interestingly, Sky Solar Holdings (Nasdaq: SKYS) is technology agnostic and can customize its solar parks based on local environmental and regulatory requirements.

Sky Solar Holdings (Nasdaq: SKYS) sales have been erratic. In 2012 Sky Solar reported sales of $203.8 million however that figure dropped to $47.2 million for 2015. EPS for SKYS shareholders has been no less unpleasant. In 2012 Sky Solar posted an EPS of $0.49, in 2014 that dropped to a loss of $1.72, and in 2015 EPS for SKYS shares was a smaller loss of $0.03.

Two firms follow Sky Solar Holdings. They both rate shares of SKYS as a “Strong Buy” with a price target of $6.50.

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

2/9/2017
Ticker Symbol SKYS
Last Price a/o 11:36 AM EST  $                      2.80
Average Volume                      37,150
Market Cap (mlns)  $      6,716,065.00
Sales (mlns) $48.60
Shares Outstanding (mlns) 47.54
Share Float (mlns) 6.03
Shortable Yes
Optionable No
Inside Ownership 0.00%
Short Float 1.62%
Short Interest Ratio 2.62
Quarterly Return -22.15%
YTD Return -19.65%
Year Return -53.70%

Eco-Stim Energy Solutions (Nasdaq: ESES) Shares Rocket on Massive Volumes

Eco-Stim Energy Solutions, Inc. – Nasdaq: ESES 

Houston, TX-based nano-cap Eco-Stim Energy Solutions Inc. shares are up over 85% on massive volumes. Shares of ESES, traded on the Nasdaq, normally have an average daily volume of just over 55,000 but in early morning trading over 1.4 million shares have traded hands. The catalyst appears to be an announcement that the Eco-Stim has executed a one-year contract, with an option for a second year, with a well-capitalized and established US exploration and production company to expand its pressure pumping operations into one of the fastest growing and most active oil and gas regions in Oklahoma. 

J. Chris Boswell, EcoStim’s President and Chief Executive Officer commented, “We have said for some time that we would not enter the U.S. pressure pumping market without some type of technology advantage, a contract and better market conditions. We now believe we have met these criteria and while the work contemplated under this contract is not expected to be executed solely with the TPU technology, we will utilize this equipment as part of the service offering. In addition, we believe that this region is poised for significant growth and this contract will position the Company in an attractive region with an anchor customer.” 

Eco-Stim’s reported sales were $800k in 2014 and $13.8 million in 2015. ESES shares have not yet produced a positive EPS for shareholders. However, losses have narrowed since 2012 when ESES reported a loss of $2.03 and in 20155 the loss was a smaller $1.36. Two firms follow Eco-Stim and both rate ESES as a “Strong Buy” with a consensus price target of $4. 

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

1/27/2017
Ticker Symbol ESES
Last Price a/o 9:56 AM EST  $                      1.47
Average Volume 55,120
Market Cap $11.4 million
Sales $8.8 million
Shares Outstanding 13.64 million
Share Float 13.18 million
Shortable Yes
Optionable No
Inside Ownership 5.80%
Short Float 0.23%
Short Interest Ratio 0.56
Quarterly Return -57.37%
YTD Return -15.62%
Year Return -64.00%

Magellan Petroleum Corporation (Nasdaq: MPET) Continues Massive 2016 Gains

Magellan Petroleum Corporation – Nasdaq: MPET

Shares of the Magellan Petroleum Corporation were trading in the $5 handle in the first week of December. Today the shares, traded under ticker symbol MPET on the Nasdaq, traded as high as $10.40.

Magellan Petroleum Corporation, based in Denver, CO, is an independent oil and gas exploration and production company focused on CO2-enhanced oil recovery projects in the Rocky Mountain region. Magellan also owns significant exploration acreage in the Weald Basin, onshore UK, and an exploration block, NT/P82, in the Bonaparte Basin, offshore Northern Territory, Australia, which the Company currently plans to farm out and a 1.9% ownership stake in Central Petroleum Limited, a Brisbane, Australia-based junior exploration and production company that operates one of the largest holdings of prospective onshore acreage in Australia.

Magellan Petroleum conducts operations through three wholly owned subsidiaries corresponding to the geographical areas in which the Company operates: Nautilus Poplar LLC in the US, Magellan Petroleum (UK) Limited in the United Kingdom, and Magellan Petroleum Australia Pty Ltd in Australia.

It is noteworthy that MPET traded below $0.25 in January – making the shares one of the Nasdaq’ largest annual gainers for 2016. MPET is followed by two analysts – one rates it a “Buy” and one a “Hold”.

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

12/27/2016
Ticker Symbol MPET
Last Price a/o 4:00 PM EST  $               9.88
Average Volume 135,370
Market Cap $56.09 million
Sales $-
Shares Outstanding 6.09 million
Share Float 4.66 million
Shortable Yes
Optionable No
Inside Ownership 13.10%
Short Float 14.80%
Short Interest Ratio 5.1
Quarterly Return 78.83%
YTD Return 1574.55%
Year Return 1361.90%

Update! ORIG Up 30% Since Covered by SNU

Shares of Ocean Rig UDW LLC are up almost 30% since we first covered the Nasdaq stock on December 6, 2016!

Here is our original story with updated data at the end:

The incoming Trump administration is believed to want to pursue an energy independent America policy. This will mean reversing many Obama-implemented regulations and asking Congress to pass laws that benefit the fossil fuel industry. One small cap Nasdaq stock that may benefit is Ocean Rig UDW LLC.

Ocean Rig UDW LLC, trading under Nasdaq ticker ORIG, is an international offshore drilling contractor providing oilfield services for offshore oil and gas exploration, development, and production drilling, and specializing in the ultra-deepwater and harsh-environment segment of the offshore drilling industry. 

The company owns and operates 13 offshore ultra deepwater drilling units, comprising of 2 ultra deepwater semisubmersible drilling rigs and 11 ultra deepwater drillships, two of which are scheduled to be delivered to the Company during 2017 and one in 2018.

However, with the incoming Trump administration and the new OPEC deal designed to regulate output, it may be time to consider another look at this former high-flier. In 2014, ORIG routinely traded over $15 with and EPS of $1.97. ORIG now trades under $2. Sales increased from $700 million in 2011 to $1.82 billion in 2014. In 2015, Ocean Rig UDW LLC reported sales of just $1.75 billion with earnings per share of $0.57.

Zacks research has recently given it a #1 rating based on their proprietary analytics. This is important because no investment bank analysts have yet upgraded their recommendations for ORIG. Should the investment bank analysts follow suit, we may see a price target more than double its current trading price of below $2.00. Prior to OPEC flooding the market ORIG was given price targets around $30 by bank analysts.

Always perform your own due diligence before making any decisions regarding the buy or sale of any stock.

Ticker Symbol ORIG
Last Price a/o 12:45 EST  $               2.60
Average Volume 2.7 million
Market Cap $160.2 million
Sales 1.87 Billion
Shares Outstanding 72.2 million
Share Float 72.2 million
Shortable Yes
Optionable Yes
Inside Ownership
Short Float 15.80%
Short Interest Ratio 4.16
Quarterly Return 192.11%
YTD Return 36.20%
Year Return 33.73%

Oil Rig UDW (Nasdaq: ORIG) Set to Regain Former Price Levels?

The incoming Trump administration is believed to want to pursue an “energy independent America” policy. This will mean reversing many Obama-implemented regulations and asking Congress to pass laws that benefit the fossil fuel industry. One small cap Nasdaq stock that may benefit is Ocean Rig UDW LLC.

Ocean Rig UDW LLC, trading under Nasdaq ticker ORIG, is an international offshore drilling contractor providing oilfield services for offshore oil and gas exploration, development, and production drilling, and specializing in the ultra-deepwater and harsh-environment segment of the offshore drilling industry. 

Ocean Rig UDW LLC owns and operates 13 offshore ultra deepwater drilling units, comprising of 2 ultra deepwater semisubmersible drilling rigs and 11 ultra deepwater drillships, two of which are scheduled to be delivered to the Company during 2017 and one in 2018.

However, with the incoming Trump administration and the new OPEC deal designed to regulate output, it may be time to consider another look at this former high-flier. In 2014, ORIG routinely traded over $15 with and EPS of $1.97. ORIG now trades under $2. Sales increased from $700 million in 2011 to $1.82 billion in 2014. In 2015, Ocean Rig UDW LLC reported sales of just $1.75 billion with earnings per share of $0.57.

Zacks research has recently given it a #1 rating based on their proprietary analytics. This is important because no investment bank analysts have yet upgraded their recommendations for ORIG. Should the investment bank analysts follow suit, we may see a price target more than double its current trading price of below $2.00. Prior to OPEC flooding the market ORIG was given price targets around $30 by bank analysts.

Always perform your own due diligence before making any decisions regarding the buy or sale of any stock. The below data is provided without any guarantee of its accuracy.

Ticker Symbol ORIG
Price $1.50
Average Volume 2.5 million
Market Cap $146 million
Sales $1.9 Billion
Shares Outstanding 79 million
Share Float 73.5 million
Shortable Yes
Optionable Yes
Inside Ownership unkown
Short Float 15.30%
Short Interest Ratio 4.46
Quarterly Return 139%
YTD Return 14.11%
Year Return 7.50%