Why ReneSolar Ltd.'s Shares Sank Again Today
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 Ltd. are down 16% today, continuing a drop that began yesterday.
So what: There's continued negativity from a disappointing earnings report yesterday and a $195 million write down from a canceled equipment upgrade. Today, shares continued to fall after Credit Suisse analysts reiterated its underperform rating and said there was little upside in the stock.
Now what: ReneSolar is rightly getting flack for its botched equipment upgrade, but it's not the worst company in China's solar market. Consider that ReneSola has $392.7 million in net debt and a $258.9 million market cap after today's drop. In last quarter alone, revenue was $419.3 million, which means that there's significant upside if the company can increase margins in 2014. For investors looking for a gamble, the drop has made the stock fairly attractive.
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The article Why ReneSolar Ltd.'s Shares Sank Again Today originally appeared on Fool.com.
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