Trina Solar Limited (TSL) Is Not Shining In China

Trina Solar Limited (ADR) (NYSE:TSL), a leading Chinese manufacturer of photovoltaic modules that provides electricity for residential, commercial, and industrial applications throughout the world, recently received a SELL rating from Axiom Capital analyst Gordon Johnson. Despite the company’s positive Q4 results, including quarterly revenue growth around 73% year-over-year to around $525 million, Gordon is not convinced that Trina Solar will complete projects promised in 2014 and is recommending SELL Trina Solar Limited (ADR) (NYSE:TSL) with a $6.00 price target.

Gordon Johnson Trina Solar Limited (ADR) TSL

Trina Solar Limited (ADR) TSL


Gordon argues, “we believe investors are giving TSL credit for projects in ’14 it will likely not sell.” To begin with, “Given TSL does not have permits for its planned 300-350MW of projects in China (which drives the bulk of the EPS/,margin upside in CY14) we do not believe the company will sell more than 50MW of projects in China in CY14.” Gordon also pointed out that, “the company has already shown an inability to accurately predict its ability to sell projects into the Chinese market, underpinned by its failed sale of the Gansu project in C4Q13 (and failed sale, as of 3/7/14, of the project YTD).”


While some investors are abiding by the bull case, Gordon believes that he cannot follow suit saying, “the bull case is predicated on blindly believing management’s ests, as well as buying the stock on a ‘catch up thesis’, which we cannot subscribe to given our focus on fundamentals.”


Gordon is ranked number 2 out of 2436 analysts with a 19.6% average return over S&P-500 and an 83% success rate of recommended stocks.


To continue following Gordon’s recommendations as Trina Solar Limited (ADR) (NYSE:TSL) moves forward with projects in 2014, be sure to download TipRanks and start making informed decisions with advice you can trust.

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2 Comments on "Trina Solar Limited (TSL) Is Not Shining In China"

  1. By now everyone knows Gordon Johnson is an idiot & no one takes him seriously. But in case you don’t know who he is, here’s some history on him:

    He’s the guy who said Chinese solar companies will never make profit because there is too much overcapacity vs demand (~60GW capacity for 36GW demand) and yet companies like JKS, TSL, CSIQ have not only hit full utilization but also announced significant capacity expansion plans.

    He’s the guy who said module ASP will fall in 2nd half of 2013 but instead we saw module ASPs rise continuously from 2nd quarter 2013 onwards.

    He’s the guy who said all Chinese solar companies will go bankrupt & their stock price will be worthless or close to zero and then we saw doubling stock prices for almost all of them in a matter of weeks.

    He’s the guy who said Chinese solar demand will be lower in 2014 due to Chinese govt policy only to be affirmed of a strong Chinese demand by all firms a few days later.

    He’s the guys who cried cried foul On YGE, TSL – EU anti-dumping exemption Press Releases, when clearly everyone agreed they were responding appropriately to EU’s final decision on the matter taken on Dec 5th.

    His records ain’t great when compared to other stock as well. He said TSLA will fail & gave a $50 target, 6 months ago and look what happened to TSLA stock during that time.

    This is another attempt by him & his shortie gang to get drive away genuine investors. Note he is connivingly saying “we do not believe the company will sell more than 50MW of projects in China in CY14”. Of course they are not going to sell any projects because they are building them up on their balance sheet for a possible yieldco in late 2014 or early 2015 (just like JKS). Does this idiot even understand the current trend and success of recently launched NRG yieldco & similar footstep from SUNE?

    This is proof positive that Gordon Johnson’s interest lie in catering to a narrow set of customers who are short & want to manipulate the stock price by spreading fear & rumor mongering tactics in order advance their own narrow agenda. Investors are better served to call him out or just ignore him.

  2. gordon johnson needs to get off this stop, rumors said his hate for tsl came from the daughter of trina solar ceo.
    she refused to date him

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