Why ReneSola Shares Shined
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of solar manufacturer ReneSola climbed 10% today after announcing a deal with Thailand-based solar and wind farm developer Energy Absolute.
So what: The stock has rebounded awesomely over the past few months on better-than-expected shipments, and today's deal -- ReneSola will provide 63MW of its Virtus II modules to Energy Absolute between August and October -- only reinforces that trend.The contract win also suggests that ReneSola's modules are rather well suited for the high temperatures and tropical conditions of Southeast Asia, giving investors plenty of good vibes over its growth potential going forward.
Now what:I'd expect demand to stay healthy over the short term. "We have been a leading provider of PV products in Southeast Asia since last year," said ReneSola CEO Xianshou Li. "As we look ahead, we hope to generate additional business in the emerging solar markets of Southeast Asia." Of course, given that ReneSola's profitability remains a huge question mark even amid higher sales, only the least risk-averse of Fools should even consider buying into those prospects.
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The article Why ReneSola Shares Shined originally appeared on Fool.com.Fool contributor Brian Pacampara and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.