ReneSola LTD (SOL)

This is an excerpt from an article I found on ING Direct done by MarketWatch.

Ken Shreve, markets desk anchor for Investor's Business Daily, went looking among new names to find stocks that might be market leaders going forward.

To that end, based on IBD studies which show that stocks tend to make their biggest gains in their early stages as a public company, Shreve screened the universe of stocks for companies that went through initial public offerings in the last eight years, that have a price above $10 per share, that are within 30% of their 52-week high and that score high on IBD's "composite rating" system.

Shreve came up with 45 stocks, and whittled them down to three names that he believes have exceptional potential to perform during any market rally that might occur in the near future: China solar-wafer maker ReneSola (SOL), Hornbeck Offshore Services (HOS) and Homex Development (HXM) all have the kind of "explosive growth potential" to be leaders during the next rally, Shreve said.

One of my primary complaints about solar stocks is the seemingly endless amount of competition in solar cell manufacturing and the apparent low barriers to entry. When it's difficult to tell one company's operations from the next, it becomes a bit of a crapshoot to pick which will excel and which will fall by the wayside.

ReneSola, however, gets around my complaint by not focusing primarily on manufacturing solar cells, but rather on making the silicon wafers that companies such as Suntech and JA Solar use to make their solar cells. So instead of trying to build the best mousetrap, ReneSola is providing springs to the mousetrap manufacturers. To me, that makes ReneSola a better pick to capitalize on the potential of solar power overall.

http://www.fool.com/investing/general/2009/06/09/great-call-on-conocophillips-whats-next.aspx

This is more of a "don't buy" recommendation than a belief that SOL will necessarily underperform. I believe that buying ReneSola right now is little more than a gamble based on the fact that its price has been higher in the past.

Some apparent strengths of Renesola's are that it is Chinese and a Solar stock. Chinese stocks are probably going to do great in the future, considering the strength of the Chinese economy vs. that of the US, and Solar will in general benefit from Obama. But Chinese Solars are not in a good position right now! There are too many of them, and they are suffering from a lack of demand: http://blogs.barrons.com/techtraderdaily/2008/11/10/china-solar-companies-reportedly-slowing-production/?mod=yahoobarrons

Now look specifically at ReneSola's balance sheet, not on the fool website: http://finance.aol.com/financials/renesola-ltd/sol/nys/balance-sheet

Cash has fallen and inventories have increased, which is exactly what the company doesn't need during a time of less production. They're good at collecting receivables, which I'll give them credit for, but that's not enough. And ReneSola's liabilities increased *more* than their assets did, meaning they essentially lost money.

ReneSola is in an uncertain place in the Chinese Solar market right now. Too much inventory and too little cash means weakness in hard times. SOL might take off in the future, but right now we have no indication of that. I think even minimal attention to this company will give you ample warning before that happens. Rather than lowering risk by buying several Chinese Solar plays, wait and watch-and snap up the companies that prove they have a future. You might miss a 30% gain, but you'll avoid a 90% loss.

I believe they will survive and thrive; this company is transforming before our very eyes. Their previous strategy was as a niche waste silicon wafer producer, now they have shifted over completely into producing the lowest cost silicon wafers possible. They have heavy competition in this area, but they have new cost-effective technologies and a factory coming online in 2009 to drastically reduce costs. They are priced for indefinite negative growth which is astounding. I'm taking a chance.

WHEN YOUR HOT YOUR HOT .... AND WHEN YOUR NOT YOUR NOT... A TREND IS A TREND UNTILL IT ISN'T AND THIS STOCK IS FLYING.. FASTEN YOUR SEATBELTS BABY!

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. The Company and its subsidiaries are engaged in the manufacture and sale of solar wafers and related products, which are integrated into photovoltaic cells, the principal component of crystalline solar panels. ReneSola offers monocrystalline wafers in sizes of 125 millimeter by 125 millimeter with a thickness of 200 microns and 156 millimeter by 156 millimeter with the same thickness at customers’ requests, which are two of the standard specifications used by most solar cell manufacturers. The Company began the production of 156 millimeter by 156 millimeter multicrystalline wafers with a thickness of 220 microns in 2007. Its customers include global manufacturers of solar cells and modules, such as JA Solar Co., Ltd., Motech Industries Inc., Solarfun Power Holding Ltd., Suntech Power Co. Ltd. and Topco Technologies Corp.

Company reports blowout quarter, raises guidance and stock goes straight up. Only thing is it is still under valued and they have a great management team that is cost efficient. I like this company the best in the solar wafer market.

Sol is a buy for anyone looking for a renewable energy play. This company recycles poly silicon, and produces solar wafers. These wafers are sold to other solar companies such as JingAo Solar CO, Solarfun, BP Solar and many others. They are one of the premier manufactures of the solar wafers in China, and are experiencing phenomenal growth.

Currently, I am waiting for a slight pull-back before purchasing additional shares. ReneSola recently announced they will be offering some 9.0mil shares. I expect some pull-back as day traders cash in now before the shares are sold. It would be great to buy this at <$22, but I am happy buying more at $23.50. However, I wouldn't wait longer than one week from today, 6/2/08, to purchase them

Target : 55$

With oil showing no signs of slowing down, we're going to need some alternative energy.

$12 target.

one of my favorite stocks, got in at $17.11, competitive advantage in their manufacturing processes, phenominal growth and low 5 yr expected peg. not many corporate cultures like theirs exist in China yet, they are ahead of the curve and results will follow.

solar

in on a dip

SOLAR

Not-cautious-at-all momentum play. Viva CAPS!

I usually stay away from recent IPOs (especially China IPOs). But, this seems to be a particularly strong solar stock that is in transition. Secondary offering @ $20.50 (including cash-outs by original (pre-IPO) stockholders), provided a reasonable entry point. If the stub price "keeps the faith" after the $20.50 secondary, then I will feel confident about this invstment decision. If not, well ... I still have a lot to learn.

Positive earnings report except for 2008 outlook which was just shy of what the street expected, 2x yoy growth for the quarter, dem in the white house in 2009 with favorable alt energy policy, watch akns too

is the fact that sunpower is doing so great, with the price of gas going thru the roof,solar power is starting to become the main alternative power,plus the fact that sol are signin up new business on a daily basis plus with the china play they are set to take off,

Long term play... will lose some points in the short term, but i don't want to forget to add it. so.... i'll take the hit.