According to their site, Canadian Solar Inc. (CSIQ) is scheduled to report earnings tomorrow morning. The stock is hitting a new all-time high ahead of this report but a look over the table below shows that this has the potential to be a very volatile situation.

This data, courtesy of Thomson Financial, shows that Canadian Solar has displayed some very wild action after earnings. The most recent report in March saw a sharp gain that was reversed the following week but then re-established a few weeks later. Meanwhile, the report in November saw a strong initial rally that carried through for several weeks.

As discussed last week, this is a stock that has a heavy level of short interest. Data from by our Quantified Analysis department shows that 33% of Canadian Solar's float is sold short.

The other interesting aspect is the opinion on the Street. According to Thomson Financial, the average 12-month price target for CSIQ is 26.58. In other words, the target is more than 20% below the current price.

At this point the stock appears to be performing better than both the Street and short sellers expected. The question is whether the company can put up the numbers tomorrow to back up the price performance.

Chart Courtesy of Thomson Financial