Why Canadian Solar, Ambac Financial, and Maiden Holdings Slumped Today

Thursday was a down day on Wall Street, with major benchmarks falling significantly from recent highs. The Dow Jones Industrials were down by triple digits for much of the session as investors responded to the ongoing wrangling on Capitol Hill over tax reform. With the House plan already having been released, initial reports about the Senate's impending proposal suggest that it takes a very different approach, with considerable chances of less-aggressive changes. Delays in corporate tax cuts and the removal of bracket-simplifying provisions were disappointing to some advocates of reform, and the resulting uncertainty could make it hard for lawmakers to get a plan done by the end of the year. In addition, some stocks had company-specific bad news that hurt their shares. Canadian Solar (NASDAQ: CSIQ), Ambac Financial (NASDAQ: AMBC), and Maiden Holdings (NASDAQ: MHLD) were among the worst performers on the day. Below, we'll look more closely at these stocks to tell you why they did so poorly.

Shares of Canadian Solar dropped 11% after the solar manufacturing specialist reported its third-quarter financial results. The company said that revenue jumped by more than 30% from what it brought in three months ago, with solar module shipments of 1,870 megawatts dramatically outperforming past guidance for between 1,650 and 1,700 megawatts. Earnings were disappointing compared to what those following the stock had expected to see, however, and some investors seemed unsatisfied with efforts to keep raw materials costs down and monetize its operating solar power plants. With the rest of the industry seeing good conditions, Canadian Solar will need to play catch-up quickly in order to bounce back from its sluggish performance.

Image source: Canadian Solar.

Continue reading

Source: Fool.com