Don't know the answer but that was one of the factors in Goldman establishing the effect of the Yuan devaluation on companies such as Trina. For Trina, they determined an increase of profit equal to 5.6% for every 1 percent decrease in the value of the Yuan. 3 to 4 % decrease in the Yuan this week bodes well. I'm assuming that 5.6% took into account the denomination of debt, manufacturing and export cost changes and I'm hopiing it also included foreign currency effects on sales to China.
Goldman says Trina profits will rise 5.6% for every percentage drop in the Yuan:
As dust starts to settle, we want to know how a cheaper yuan impact the earnings of Chinese companies. Does China Southern Airlines deserve losing 14% of its market value?
Goldman Sachs provided us with a list.
Two mining companies Zhaojin Mining Industry (1818.Hong Kong) and Zijin Mining (2899.Hong Kong) will benefit quite a bit from a cheaper yuan. Goldman estimates that for every percentage depreciation in yuan versus the dollar, Zhaojin and Zijing will see their earnings rise by 8.7% and 8.3%. Yesterday, Zhaojin and Zijing rose 5.7% and 8.5% respectively.
Solar company Trina Solar (TSL) is also a major beneficiary. Its earnings will rise by 5.6% for every percentage drop in yuan.
The tariffs apparently are retroactive, otherwise a reduction for the 2012 case would be meaningless. So, a positive for the 2012, a negative for recent and going forward. Will those be recognized this (3rd quarter) when CSIQ became aware or for past quarters? Thanks.
Sometimes love is blind, you just do what feels right, and CSIQ going to 45 and beyond feels right. You know it too but you're too stuborn to admit it. We're not selling so why don't you short away. LOL
Here's the deal, you believe what you believe and we believe what we believe. Let's leave it at that and invest accordingly. Go ahead and short all you want, I don't care what you do. I'll see you at 50 before 30 on the stock price, however.
Were you not smart enough to cover already? You know, hard headedness will make you go broke. 40 soon, if not today, then beyond.
Or the opposite. SPWR has a PE of 31.53 (per Ameritrade) and CSIQ has a PE of 8. If SPWR acquired CSIQ for $75 a share, in theory CSIQ's $4 earnings would add another $51 value per share to SPWR. That would be value added to SPWR of 6.78 Billion at a cost of $4.18 Billion acquistion cost. Would neatly manufacture $2.6 Billion in value by the combination alone.
Actually, understanding the yieldco strategy, I thought FSLR's drop was unwarranted and I picked up a few thousand shares of FSLR at $56.57 BE and I'm quite happy with the prospects. I see a $10 rise in the next 6 weeks to go along with my CSIQ where I see a $5 rise in the same timeframe.
Baba is going to test 50's 60's before it rises again. That's my reluctance on buying Yhoo. Plus, the Spinco does nothing to solve the tax issue, the tax carries over to Spinco. Smoke and mirrors.
Good morning Sport, how's your morning looking? I suppose you are going to tell us that you covered in premarket at $34.20? I would expect that from an astute trader like yourself.
Said my last buy was 19.53. My average was in mid 20s. Held them down to the 18's bottom and continued to hold 10K shares until 30s and started layering out. I did OK. It may pull back some at which time I will buy back for the ride to $45.
OK Sport, lol. My last buy on CSIQ was at $19.53. I did take some profits today but still holding a few thousand shares. Will buy back on any dip sport.
Short away! Just let us know when you short so we can hold your feet to the fire as things get hotter and hotter for you.