It’s remarkably weak, which once again has to do with weakness in the sector, rather than any weakness in executing on the part of Trina. It’s curious. So far the averages held. Let’s see the chart:

Again it’s a tight affair. At present, whe’re at 42.5, which seems to be exactly the 50 day moving average. We really cannot think of even a single reason why TSL should sell-off, or move below these averages, apart from what’s happening to the sector.

It’s like playing chess on different boards at the same time. On the TSL board, everything looks fine. In fact, there are people who argue that they actually did earn much more than they reported, because they switched to US$ as their ‘functional’ currency, having to revalue certain non-US$ priced liabilities. Earnings would have been 67 cents, instead of the 52 they announced.

We are puzzled by both arguments, to be honest. First, TSL’s is phrased so byzantine (doing themselves a huge disfavour in the process), that we do not really understand what they mean. Secondly, as a US listed ADR, don’t they have to rebase everything into US dollars anyway?

This guy goes even further, arguing that if they wouldn’t have had to pay $1M in income tax, earnings would have been above 70 cents. Yeah, right. We’re fans of TSL, but one shouldn’t lose sight of reality. Income tax has to be paid, simple as that.

The truth remains though, Trina is severely undervalued.