StockOpine's avatar
$40.8m follower assets
Any thoughts on $CSIQ?
$369 billion of the Inflation Reduction Act of 2022 ("IRA") are authorized for spending on energy and climate change. IRA makes Renewable companies good candidates to capitalize on this law.

While analyzing $CSIQ, we noted from Glassdoor that ratings were low and the most recent comments negatively criticized management, HR and how the company is managed through China headquarters.

Additionally, on a SEC filing dated 9 June 2022, Shareholder Association for Research & Education ("SHARE") urged shareholders to vote Against 3 of its directors (however they were reelected in 22 June 2022) due to non responsiveness on calling the Board of Directors to oversee a third-party assessment of the effectiveness of the Company’s policies and procedures in protecting against forced labour, including in the Xinjiang Uyghur Autonomous Region.

Such findings are cause for concern for the Company's Culture and Leadership.

Does anyone have more insights on $CSIQ that he/she can share?
Young Money Capital's avatar
Actually used to own $CSIQ. Couldn’t get behind energy ever being a good industry (low differentiation). Especially a small cap with no economies of scale.
StockOpine's avatar
@youngmoneycapital what was the reason you sold? The truth is difficult to identify a moat in such companies as energy is somehow commoditized.
Young Money Capital's avatar
@stockopine tbh I was a much weaker investor when I bought initially than I am now. I sold because of the realization of lack of differentiation and realizing the importance of differentiation. This was prob 4-5 years ago.
StockOpine's avatar
@youngmoneycapital makes sense. Thank you for sharing your thoughts!
The Hippie Investor's avatar
Good info. I used to own. Sold bc industrial manufacturing is a tough low margin business, and I’d rather own $FSLR which to hit on YoungMoney’s critique is differentiated and has a moat in the U.S.
StockOpine's avatar
@the_hippie_investor $FSLR looks kind of pricey although it could be one of the key beneficiaries of IRA. What is the strength of their moat?
The Hippie Investor's avatar
@stockopine It is pricey now. Probably a better entry point coming. I started a small position when it was beaten down. Holding now but actually trimmed a little today bc of the big run. It’s moat is 1. that it’s the largest manufacturer of industrial solar panels in the U.S. and has the largest market share of these big projects which are long term and also growing. Their manufacturing centers are on US soil which is important given the push for more U.S. based renewable energy manufacturing, supply chain issues, and pushback against Chinese manufacturers. 2. They are the main provider (maybe only, have to check again) of a specific type of thin film solar panel that some have argued is a superior more efficient panel for larger solar farms than competitors. You’ll have to take that part w a grain of salt as it’s not my area of expertise.
Cheers!
StockOpine's avatar
@the_hippie_investor thank you for your insights. We will wait for a better entry point at this time.

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