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Solarfun Earnings Could be the Perfect Trigger for a Short Squeeze

 May 16, 2008 09:04 AM UTC
Return Risk
-62.79% HIGH
Tracked Blogger
Symbol Sentiment Start Return Closed
SOLF Positive 05/16/08 -67.48% --
CSIQ n/a

Graphic_arrow1 Via Long Investment Ideas from Seeking Alpha:  


Virtually all of the solar companies which have reported recently have reported better than expected earnings. <!---->Canadian Solar (CSIQ) trounced their earnings estimates. CSIQ is in a virtually identical segment of the business to Solarfun (SOLF). According to theStreet.com analyses on TD Ameritrade, SOLF has slightly better margins than CSIQ. This would lead one to believe that SOLF is likely to have much better than expected earnings this quarter. With the price of the stock currently sitting on (or near) the trigger point for most short sale buy backs, a move up with earnings might well trigger a big short squeeze. I note the current price of SOLF at this writing is approx. $18.50. Likely most shorts were sold at or below this price.




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