Posts Tagged ‘ReneSola’

Renesola and Another Dear John Letter

Readers of Investor Trader may remember my brief tryst with West China Cement which came to a premature end back in May of this year.

Sadly, growth saw them forget their roots, pull their AIM listing and try to make it in the big city. In this case, the big city being Hong Kong. And as it turns out, the big city has been quite kind witnessing gains in WCC in excess of 20% in the month since they headed east. I was willing to take that one on the chin. Let bygones be bygones and all that. Until……

Until yet another Dear John letter from my broker. This time it’s my beloved Renesola (another Chinese share) that are pulling their AIM listing and heading for another big city, well big apple to use the local parlance, New York. And no, my broker doesn’t trade on the NYSE. You seeing the theme here?

Anyway, to cut a long story short, I can either hunt down a broker that can trade across the pond or I can give up on my Renesola’s and keep my hard-earned in UK listed shares. I’ve got until early November to make my decision.

The spanner in the works is that Renesola is really flying at the minute making the timing all important.

I’ve been in and out of Renesola for years now and it’s the one share that I have consistently profited from. I’ve bought in at under a pound and I’ve sold at over six pounds with lots of buys and sells in between (and always for a profit I might add).

Currently Renesola sits just north of £3.50. Our portfolio holds 1,000 SOLA.L with an average purchase price of £1.12. If we sold today we’d be looking at a triple-bagger, not too bad by any standards, but it’s the forcing of my hand that I find hard to stomach.

So, what to do? Would you be looking at bailing out after a month like the one below?

Watch this space.

A Little Renesola Profit Taking

A few days back I wrote about Renesola testing new recent highs in the lead-up to results and how the situation in Greece threw a bit of spanner into the works. Well results have come and gone, and not bad results at that, but having a bit of a conservative edge about me of late, I took a little profit, realising 400 shares at £2.41 a share for a return before costs of £964. We were averaged into Renesola at £1.12 so we more than doubled our money and we’ve still got 1,000 SOLA’s sitting in our portfolio mix.

There are one or two potential purchases we’ll be looking closely at in the coming days using the stockpile of cash we’re sitting on after our West China Cement sale, so stay tuned. And don’t worry too much about that conservative edge, I’m working on ridding it as a bit of a priority.

Renesola and Happenings in Greece

There’s no doubting anyone holding any sort of UK based portfolio over the past week or two has felt the pinch of what’s been happening in Greece. I, like many, are hoping it’s no more than a blip – albeit a pretty big blip for those on the ground – and with solutions being touted as I type, the markets will rebound in the coming days and weeks.

Now hindsight is a wonderful thing, but when Renesola topped out at a little over £2.50 last week, my finger hovered over the sell button. It hovered but nothing more. It was the run-up to results (due out on May 10th if I’m not mistaken) and often that lead up to an expected good set of results sees the price peak. Then, when the results are confirmed the market has already factored in their healthy goodness and share prices can actually retreat a little. Now, Renesola has been bouncing along between 75 and 225 pence for the past 18 months, so when it breaks those levels I tend to take a bit of a closer look. Hence the finger hover.

Enter the Greece situation and markets across the board stall, despite what they were doing two to three weeks back. What was positive sentiment in the lead up to a results date (in the case of Renesola) has been influenced by macro trends where investors are playing a cautious hand and hanging off on further commitments at best and often liquidating some or all of their portfolios at worst.

In the end I held onto my Renesola. I’m still not confident it was the right thing to do but looking at my portfolio as it stands today, Renesola is battling on – it’s the only splash of blue in a sea of red. Time will tell whether that hover should have been hard click.

Sale – A Little Renesola

Eros International wasn’t the only holding to get a trim following our decision to add OPG Power Ventures to the Investor Trader Radar.

For those of you that have followed Investor Trader over the journey you’ll know that we often buy and sell a little Renesola on the dips and peaks.

And although we believe Rensola’s current surge toward £2 still has a ways to travel, we sold 292 shares for £1.90 for a total return of £554.40.

We were averaged into Renesola at £1.12, so our 292 shares netted a total profit of £227.76 and we’re still holding 1,400 into the bargain.

ReneSola Results

Earlier today ReneSola announced its third quarter results (for the period ending 30th September 2009) and the future is looking pretty rosy for our vertically integrated Chinese manufacturer of solar power products.

Highlights included:

  • Third quarter net revenues exceeded guidance coming in at US$140.9 million, an increase of 70.6% over second quarter net revenue figures of US$82.6 million.
  • Total solar product shipments in the third quarter were a record 146.9 megawatts (MW), an increase of 71% from 85.9 MW in the second quarter of this year.

Mr. Charles Bai, ReneSola’s Chief Financial Officer had this to say:

“We were pleased to see strong improvements in revenues and shipment volumes during the third quarter as we continue to witness strong customer demand and continue to gain market share globally. We are one quarter away from completely working through our high cost inventories. As such, we expect substantial margin improvements and a return to profitabilityin Q1 2010.”

Check out the results in full at the Renesola web site.

On the back of these results, ReneSola’s price is north to the tune of 10.34% as I type, with the New York Stock Exchange (NYSE) due to open any minute. It’ll be interesting to gauge US opinion and the effect it has on price in the two and a half hours to London’s close, and of course, in the coming days.

After the downhill ride SOLA holders have endured for the past couple of months it’s nice to see a little optimism returning. I’m certainly feeling justified in topping up our holding at £1.23 a couple of weeks back now. Let’s just hope that the sun is shining on ReneSola and 2 quid is soon again bobbing up on the horizon.


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Disclaimer: Investor Trader is the blog of a single, personal investor. The owner of this blog is not a citizen of the United Kingdom nor is he based in the United Kingdom and the blog is not hosted in the United Kingdom. The owner has never received any form of compensation for providing investment recommendations and has never in the past been employed in any capacity where he has provided investment recommendations. Investor Trader does not make investment recommendations and no information displayed on its pages should be considered as investment advice. Nothing on Investor Trader should be interpreted as a recommendation or solicitation to buy or sell any securities or investments. All trades are first reported on Investor Trader at least a day or two after the fact (but more often a week or two), never live. Investor Trader is here to journal my attempts to make a few quid from the markets and possibly to entertain you a little into the bargain. Please, please, please, do your own piles of research and if you want good investment advice go out and find someone who does this sort of thing for a living (i.e. not me). Most of my investment decisions are based on gut feelings, hearsay, unfounded rumour and whether or not I like the cut of a company logo. You've been warned!
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