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Canadian Solar Slides on Low Forecast and Yieldco Indecision

Canadian Solar Inc. dropped the most in two months after the company issued a lower-than-expected sales forecast for the year and said it’s still on the fence about forming a yieldco to buy some of its $2.5 billion in power projects.

Canadian Solar slumped 13 percent to $18.89 at the close in New York, the most since Jan. 7 and extending its loss for the year to 35 percent.

Canadian Solar, like other clean energy companies, is struggling to figure out what to do with its wind and solar farms now that investors have become leery about forming separate holding companies, called yieldcos, to buy and operate the assets.

The company is considering a variety of options, including selling some projects or securitizing the assets’ revenue. Or, if investors change their minds, Canadian Solar may proceed with the yieldco plan that was first announced in mid-2014.

“We will remain flexible on how to modify these assets in order to maximize shareholder return,” Canadian Solar Chief Chairman Shawn Qu said in a call with...


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