ReneSola Ltd (NYSE:SOL)

CAPS Rating: 1 out of 5

ReneSola Ltd (ReneSola) is a manufacturer of solar wafers, which are thin sheets of crystalline silicon material primarily used in the production of solar cells.

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101 Outperform
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Wall Street

7 Outperform
3 Underperform
 

Top SOL Bull/Bear Pitches

The best Bull and Bear pitches based on recency and number of recommendations.

uclatommy (< 20)
Submitted November 19, 2011

Current investors are scared that Europe will cut back incentive programs for solar energy due to the debt crisis. Demand for solar energy will fall in the short term. However, in the longer term, energy prices from traditional sources will… More

jed71 (99.85)
Submitted March 14, 2017

When I am negative a particular industry or sector, I try to look for the worst players within that industry to red thumb. While this might seem like an obvious tactic, more often than not, I find good investors going negative on an entire industry… More

SOL VS S&P 500 (SPY)

Recent Community Commentary

Read the most recent pitches from players about SOL.

Recs

0
Member Avatar SmartAce (99.94) Submitted: 8/22/2017 1:45:58 PM : Underperform Start Price: $2.58 SOL Score: -17.98

What moisturizer do bullfighters use?
Olay.

Recs

5
Member Avatar jed71 (99.85) Submitted: 3/14/2017 11:29:25 AM : Underperform Start Price: $2.44 SOL Score: -21.61

When I am negative a particular industry or sector, I try to look for the worst players within that industry to red thumb. While this might seem like an obvious tactic, more often than not, I find good investors going negative on an entire industry rather than selectively playing the high-debt / low margin / weakest players within that industry. I have personally been able to increase my gains by being more selective as many times my timing for down thumbs is not perfect or the industry recovers over a period of time.

Solar is one I have been negative on for quite some time. I have gone over the reasons for my negativity on several other pitches so I don’t want to spend a bunch of time rehashing. In summary, I think the efficiencies of solar are rather poor and I think carbon based energy, which is very cheap right now, is very attractive to those who are more cost conscious. In addition, the margins for solar power are incredibly thin, and if not for the subsidies in the US, I don’t believe there’d be much of a market for solar power.

This company is in a weak industry and its one of the worst from a financial and execution perspective. Revenues have been declining for the past few years and gross margins are very thin. It’s also a Chinese firm which gives me less hope that they have shareholders’ interests in mind, especially US ADR holders. The risk factors in the most recent 20-F seem to put additional pressure on this firm’s already precarious position. One interesting section:

“Our financial leverage may hamper our ability to expand and may materially affect our results of operations. Our borrowing levels and the tightening of credit generally in the industry in the PRC may adversely impact our ability to obtain new financing. We have relied on short-term and long-term borrowings and capital markets financing to fund a portion of our capital requirements and expect to continue to do so in the future. We have significant borrowings from commercial banks in China, which consist primarily of short-term borrowings. As of December 31, 2015, we had short-term borrowings of $668.8 million, of which $415.8 million was attributable to trade financing. As of December 31, 2015, we also had long-term borrowings of $38.8 million. Our working capital deficit was $477.3 million and $466.1 million as of December 31, 2014, and 2015, respectively.”

I’d be way less concerned if this borrowing was long term debt. It scares me to no end that this company has to reborrow money every 12 month or so to cover its debt. Further,

As of December 31, 2015, several factors have raised substantial doubts about our ability to continue as a going concern for the foreseeable future, including: (i) we incurred a net loss of $5.1 million for the year ended December 31, 2015, (ii) as of December 31, 2015, our current liabilities exceeded our current assets by $466.1 million, and (iii) there was a put option held by the convertible bond holders, whereby on March 15, 2016 they could require us to repurchase for cash all or any portion of their notes at a price equal to 100% of the principle amount plus any accrued and unpaid interest. As of December 31, 2015, the convertible notes payable balance was $26.1 million. We subsequently repurchased all of the outstanding convertible notes in the first quarter of 2016. These factors could adversely affect our ability to meet our ongoing financing needs as well as to obtain third party financing, which is subject to a number of uncertainties, including our future financial condition, operations and reputation, general market conditions in our industry and economic, political and other conditions in China and elsewhere. For example, weakening global economic conditions and macroeconomic factors in the PRC, such as credit tightening policies implemented by the Chinese government, may negatively impact our ability to obtain financing in a timely manner or on commercially acceptable terms.”

Good grief. Current liabilities exceed current assets by $466MM!!!! That is crazy. Anyone who owns shares here has a death wish. Any changes to their ability to receive financing in the PRC, and this company will be toast. Remember that they have most of their debt in short term notes, which is incredibly dangerous. Also, the rights of the ADR holders here are very limited, so if you are trading or holding shares long here, I would be very careful.

Recs

0
Member Avatar DigitalDisco (87.54) Submitted: 2/10/2017 12:57:24 PM : Underperform Start Price: $3.10 SOL Score: +8.99

reverse split

Leaderboard

Find the members with the highest scoring picks in SOL.

Score Leader

360stockscom

360stockscom (23.09) Score: +298.30

The Score Leader is the player with the highest score across all their picks in SOL.

Top
Pick
Member Name Member
Rating
Start
Date
Call Time
Frame
Start
Price
Stock
Gain
Index
Gain
Score Commentary
360stockscom 23.09 3/26/2009 Underperform NS $18.15 -82.37% +215.93% +298.30 0 Comment
unstoppablepeon 22.11 10/27/2008 Underperform NS $24.50 -86.94% +208.12% +295.05 0 Comment
CDrews2002 25.24 10/28/2008 Underperform NS $25.50 -87.45% +203.49% +290.94 0 Comment
ChargePositif 42.89 11/19/2008 Underperform NS $15.50 -79.35% +210.20% +289.56 0 Comment
Traveller43 20.55 1/12/2009 Underperform NS $24.05 -86.69% +197.56% +284.25 0 Comment
Traveller412 < 20 12/15/2008 Underperform 1Y $16.35 -80.43% +199.37% +279.80 0 Comment
tban 85.24 5/19/2009 Underperform NS $19.00 -83.16% +186.54% +269.69 0 Comment
Jun006 < 20 7/15/2010 Underperform 3M $37.40 -91.44% +136.40% +227.85 0 Comment
nsboise1 74.98 9/23/2010 Underperform 1Y $55.10 -94.19% +130.92% +225.11 0 Comment
GodlySage 42.87 7/29/2010 Underperform NS $38.50 -91.69% +132.93% +224.62 0 Comment

Wall Street

See what the Wall Street professionals think, according to their public statements and filings.

Player Name Player
Rating
Start
Date
Call Time
Frame
Start
Price
Stock
Gain
S&P
Gain
Score End Date Commentary
TrackRothCapital 72.46 3/25/2014 Outperform NS $20.15 -35.98% +3.25% -39.23 5/30/2014 @ $12.90 0 Comment
TrackCreditSuiss 90.71 10/18/2013 Outperform NS $27.35 -88.30% +49.41% -137.71 0 Comment
TrackCreditSuiss 90.71 5/24/2013 Underperform NS $11.60 +133.41% +5.11% -128.30 10/17/2013 @ $27.08 0 Comment
TrackZacks < 20 9/14/2012 Outperform 3M $8.00 -16.25% -5.85% -10.40 11/12/2012 @ $6.70 1 Comment
TrackZacks < 20 8/27/2012 Underperform 3M $8.05 -0.62% +4.07% +4.69 9/14/2012 @ $8.00 1 Comment
TrackZacks < 20 11/28/2011 Underperform 3M $9.25 -20.54% +13.13% +33.67 7/16/2012 @ $7.35 1 Comment
TrackZacks < 20 8/10/2011 Underperform 3M $0.00 0% 0% 0 9/14/2011 @ $14.35 1 Comment
TrackGoldmanSach 76.80 7/28/2011 Underperform 5Y $23.00 -86.09% +97.49% +183.58 1 Comment
TrackZacks < 20 4/29/2011 Outperform 3M $45.90 -64.81% -17.69% -47.12 8/11/2011 @ $16.15 1 Comment
TrackBreanMurray 79.79 3/31/2011 Outperform NS $51.85 -54.19% -3.06% -51.13 6/28/2011 @ $23.75 0 Comment
TrackGoldmanSach 76.80 12/29/2010 Outperform 5Y $42.65 +38.22% +5.59% +32.62 2/28/2011 @ $58.95 1 Comment
TrackAurigaUSA 61.35 12/1/2010 Outperform NS $43.25 -92.60% +116.11% -208.71 0 Comment
TrackBarclaysCap 90.72 8/18/2010 Outperform NS $41.75 -92.34% +136.75% -229.08 0 Comment
TrackZacks < 20 8/9/2010 Outperform 3M $41.55 +17.81% +17.58% +0.23 4/8/2011 @ $48.95 1 Comment
TrackGoldmanSach 76.80 7/8/2010 Underperform 5Y $34.90 +28.08% +17.01% -11.07 12/27/2010 @ $44.70 1 Comment
TrackDeutscheSec 88.48 3/4/2010 Outperform NS $27.55 -88.38% +131.00% -219.39 0 Comment
TrackPiperJaff 85.10 8/14/2009 Underperform NS $26.75 -88.04% +157.75% +245.78 0 Comment
TrackCreditSuiss 90.71 8/14/2009 Outperform NS $26.75 -57.20% +63.59% -120.79 5/23/2013 @ $11.45 0 Comment
TrackOppenheimer 69.01 7/10/2009 Outperform NS $23.25 -86.24% +197.54% -283.78 0 Comment
TrackZacks < 20 12/18/2008 Underperform 3M $16.70 -18.86% -15.16% +3.70 2/24/2009 @ $13.55 1 Comment
TrackZacks < 20 6/26/2008 Outperform 3M $86.70 -55.02% -22.92% -32.10 10/20/2008 @ $39.00 1 Comment
TrackCharlesPayn < 20 5/16/2008 Outperform 3M $130.20 -97.54% +88.82% -186.36 0 Comment
TrackDeutscheSec 88.48 5/15/2008 Outperform NS $119.30 -89.23% -45.71% -43.52 11/21/2008 @ $12.85 0 Comment
TrackLazardCapit 77.25 3/10/2008 Outperform NS $46.30 -93.09% +110.17% -203.26 0 Comment
TrackJimCramer 85.14 2/13/2008 Underperform 3W $64.75 -95.06% +98.52% +193.58 0 Comment

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