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Zacks Bull and Bear of the Day Highlights: Canadian Solar, Charlotte Russe, Skechers, eBay and Celanese
Tuesday, October 07, 2008 6:57 AM
Symbols: CE, CHIC, CSIQ, EBAY, SKX
(Source: Business Wire)trackingZacks Equity Research highlights Canadian Solar, Inc. (Nasdaq: CSIQ) as the Bull of the Day and Charlotte Russe Holdings (Nasdaq: CHIC) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Skechers (NYSE: SKX), eBay (Nasdaq: EBAY) and Celanese (NYSE: CE).

Full analysis of all these stocks is available at http://at.zacks.com/?id=2676.

Here is a synopsis of all five stocks:

Bull of the Day: Canadian Solar, Inc. (Nasdaq: CSIQ)

Canadian Solar engages in the design, development, manufacture, and sale of solar module products (ranging from 5-watt to 300-watt and using both polycrystalline and monocrystalline solar cells) that convert sunlight into electricity for various uses. The company was incorporated by Dr. Shawn Qu in Canada in 2001. In the People's Republic of China, the company has three manufacturing facilities located at Suzhou, Changshu and Luoyang.

CSIQ's bullishness has been boosted by improving company fundamentals, higher revenue guidance, capital expansion funds generated through follow-on offerings, and volatility in the price of oil. Going forward, on the back of solar panel sales growth in various global markets, extension of product lines, material cost savings through the company's more vertically-integrated production structure, higher captive generation of solar cells, long-term supply agreements, and a silicon reclamation program should, collectively, generate significant earnings growth.

So, with a predominantly bullish outlook, we maintain our BUY recommendation on CSIQ with a six-month target price of $29.50. Price appreciation to our near-term valuation target represents 94.3% upside potential.

Bear of the Day: Charlotte Russe Holdings (Nasdaq: CHIC)

Charlotte Russe is a mall-based specialty apparel retailer, which carries both branded and private-label merchandise, targeting women in their teens and twenties. The retailer offers a broad assortment of fashionable merchandise.

We reiterate our Sell rating on Charlotte Russe shares. In July, the company reported soft results for the fiscal third quarter and issued disappointing guidance for the fiscal fourth quarter. Economic conditions have worsened in the last two months, which has added to Charlotte Russe's problems.

We are again reducing our estimates. Our fiscal 2008 EPS estimate goes from $1.18 to $1.16, and our fiscal 2009 EPS from $1.00 to $0.94. CHIC shares may look cheap at these levels, but we expect further deterioration in its business. Our estimates are well below the consensus view, and we expect consensus estimates to continue falling over the next few months.


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