ReneSola Ltd. (ADR) (NYSE:SOL) Stock Volatile In Spite Of Financial Turn Around


Dallas, Texas 04/09/2014 (FINANCIALSTRENDS) – Stock of China based semi-conductor major ReneSola Ltd. (ADR)(NYSE:SOL) continues to be volatile ever since it reported its first profits from quarter operations in the past 10 quarters during its 4Q 2013 earnings call on 24th March. The strong earnings resulted in analysts upgrading the stock, but the good news was offset by a steep fall of close to 19.3 percent in the past on month.

The sell off occurred after concerned investors started to approach law firms to investigate if the principal officers were responsible for the company being “selected as one of the respondents in the United States Department of Commerce’s anti-dumping investigation on certain crystalline silicon photovoltaic products from China”.

In the fourth quarter, ReneSola Ltd. (ADR)(NYSE:SOL) reported that its shipments had gone up by 9.2 percent in comparison to sequential previous quarter. Net revenues for the quarter came in at $438.8 million, which translates to a 4.7 percent increase from 3Q14. Gross profits came in at $47.4 million for the quarter, which translates to a 10.8 percent gross margin. Operating income came in at $8.2 million for the quarter, which was well above the $180 million loss it had reported in 3Q13. This translates into a jump of 43 percent in the firm’s operating income.

On the back of the big jump in operational income, Roth Capital announced that it has upgraded the stock of ReneSola Ltd. (ADR)(NYSE:SOL) on the back of positive business drivers like the firms go to market strategy of adding more deals related to “the integration of 6k MT of polysilicon capacity” and incrementally upping the OEM production capacity by tying up with global manufacturing partners. These improvements in operations have helped the firm post improvement in earnings as per analysts at Roth. The rating agency also increased the price target of the stock to $5, which represents a 30 percent premium on its current pricing.