Solar energy firm China Sunergy reported a third-quarter net loss of $4.43 million, or 11 cents per American Depositary share, this morning. The results mark a rather tidy reversal from the company's year-ago profit of 11 cents per American Depositary share. Revenue for the recently ended quarter climbed to $49 million from its year-ago sales of $36.8 million.
Despite the less-than-stellar earnings news, shares of CSUN are on the rise today after the company reported that it signed a deal to supply Canadian Solar (CSIQ) with a volume of 25MW of solar cells in 2008. CEO Allen Wang noted that the deal is a positive example of how we are developing our high quality global customer base while further enhancing our brand recognition within the industry.
Unfortunately, today's gains were neatly capped by resistance from CSUN's declining 10-day moving average. The stock is also looking up at a bearish cross of its 10-week and 20-week trendlines, as well as a bulk of out-of-the-money call interest at the December 10 strike. Short sellers have been quick to pile onto the stock's slump; short interest on CSUN increased by more than 200% during the most recent reporting period.