20 Jan | Buckle Up For a Renesola Ride
It’s been a hair-raising start to 2010 for Renseola – our manufacturer of solar wafers and solar power products – but no-one said investing in China-based alternative energy AIM shares was gonna be easy!
January started with an optimistic bang sending SOLA.L skyrocketing from it’s Christmas break price of 145 pence up to 190 pence in the space of a week. That’s a 23.6% gain! Why? Good question.
That first full week of 2010 trading only bought news of a failed acquisition. Renesola’s plans to purchase Dynamic Green Energy Limited fell through due to a lack of relevant Government agency approvals.
Despite what I construed to be negative news, the RNS remained upbeat and finished with this optimistic flurry from ReneSola’s Chief Executive Officer, Li Xianshou:
Despite the termination of the Jiawei acquisition, ReneSola’s downstream strategy remains intact and we continue to witness impressive organic growth in our JC Solar cell and module business.
We are still in a strong position to leverage our wafer manufacturing capabilities and deep customer relationships to quickly expand our downstream business. We expect to see significant top-line and bottom-line growth from our downstream business in 2010.
After peaking just shy of the magical £2 level, Renesola has given back most of the gains it made early in January. There’s been a little negative press out of Germany where the government plans to cut solar power incentives more deeply and sooner than expected but besides that, I put the drop down to the natural ebbs of flows of this volatile firecracker of a share. With results due late Feb, expect more turbulent times to come.
Thanks again for dropping by.