Trina Solar Falls to Record Low on Shipment Estimate Cut
Stock Chart for Trina Solar Ltd (TSL)
Trina Solar Ltd. (TSL), the renewable energy company that’s declared a loss for the last four quarters, fell to a record low in New York as investors sold the stock in response to a cut in its preliminary shipment estimates.
Trina’s American depositary receipts, equivalent to 50 ordinary shares, declined 19 percent to $2.63 at the close, the lowest since public trading began in 2006. Trading volume was more than double the three-month average. The Bloomberg Global Large Solar Index (BISOLAR) fell 5.3 percent to its lowest level.
“Clearly someone’s dumping the stock, and usually when you see this type of heavy, heavy selling, my interpretation is that it’s a big seller or two,” Aaron Chew, an analyst at Maxim Group LLC in New York, said by phone today. The sell-off of the Changzhou, China-based company is “a delayed reaction” to Trina’s Nov. 12 statement on third-quarter estimates, he said.
Trina cut its estimate for third-quarter shipments 20 percent to as much as 385 megawatts from as much as 480 megawatts. The company blamed a supply-demand imbalance and “irrational pricing practices” by competitors. Trina is scheduled to release third-quarter results Nov. 20.
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