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.Fool contributor Travis Hoium has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not 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.