Read the latest interims.......just make sure that you are sitting down.

Aha, the reason for the rising (finally unearthed on another BB).

2007 Production Capacity Expansion

RENESOLA LTD

PRODUCTION CAPACITY EXPANSION UPDATE


ReneSola Ltd ("ReneSola" or the "Company") (AIM: SOLA), a leading manufacturer
of solar wafers for the photovoltaic industry, is pleased to announce a
significant uplift to its planned 2007 production capacity expansion.

2007 Production Capacity Expansion Revision

On 10 October 2006 the Company announced that the planned production capacity
for the end of 2007 had been increased from 125 MW to 180 MW through the
addition of multicrystalline furnaces and wire saws.

Since that time, ReneSola has received letters of intent, primarily from
existing customers, to purchase additional monocrystalline wafers that far
exceed the existing monocrystalline wafer production capacity. In order to
meet this demand, the Company has increased the planned 2007 capacity expansion
with the addition of a further 85 MW of monocrystalline furnaces. Total
production capacity by the end of 2007 is therefore now planned to be 265 MW.

ReneSola has commenced the negotiation of sales contracts with customers for
the delivery of the anticipated output of approximately 50 MW of wafers during
2007 from the additional monocrystalline furnaces. The Directors expect that
approximately 75 per cent. of these sales will be effected under tolling
arrangements where the customer supplies the silicon feedstock to ReneSola for
processing into solar wafers. This will significantly reduce the Company's
working capital requirement.

ReneSola has signed a contract and paid a deposit for the purchase of the first
batch of 48 monocrystalline furnaces from Beijing Oriental Keyun Crystal
Technologies Co. Ltd., which supplied all of the Company's existing
monocrystalline furnaces. These furnaces are expected to be delivered in
February and March 2007. The remaining 48 furnaces are planned to be delivered
during the second quarter of 2007.

In tandem with the planned addition of monocrystalline furnaces, the Company
has signed a contract with NTC of Japan to purchase a further 25 wire saws,
which are scheduled to be delivered during the first half of 2007.

The facility of 10,400m2 currently under construction adjacent to existing
facilities will be used to house the new monocrystalline furnaces and wire
saws. The facility is expected to be finished in early February 2007. The new
multicrystalline furnaces purchased from ALD Vacuum Technologies GmbH of
Germany and the wire saws purchased from Meyer Burger AG of Switzerland will be
located in the next phase of facilities on which construction is expected to
begin before the end of 2006.

The Company is currently in negotiations with a Chinese bank which has
indicated that it will provide facilities consisting of a term loan to finance
the instalment payments of the capital expenditure and a revolving credit line
to finance the working capital requirements.


For further information, please contact:



In China:

Charles Bai, CFO
ReneSola Ltd
Tel: +86 573 477 3061, +86 573 477 3058
Email: charles.bai@renesola.com

In the UK:

Charles Ryland/Suzanne Brocks/Catherine Breen
Buchanan Communications
Tel: +44 20 7466 5000

Tim Feather
Hanson Westhouse LLP
Tel: +44 113 246 2610
Email: tim.feather@hansonwesthouse.com





END

"Total production capacity by the end of 2007 is therefore now planned to be 265 MW." !!!!!!!

This is more than double original planned capacity and almost 50% more than the 180MW announced a month or two ago.

The future looks bright!

PDYOR, etc.

The future looks -Fantastic!! This is my best purchase ever!

LOL - congrats, MP - and thanks again to you and WhatU for pointing it out to the rest of us!!

Well, I have my free float and it looks set to rise nicely. Could easily double from here by mid-2007; FY results for the forthcoming financial year could mean 700p a share.

Look out for CCH and EIIB-I'm building my holdings as I feel they will eventually get noticed. EPY is also doing well for me-huge markets and simple business to understand. sorry for O/T chat.

Thank you, MP, I shall take a look. Don't worry about O/T - to me it's only irritating when people start posting a load of info or argument when they could easily say "meet me on the other thread".

Incredible: SOLA Bid: 270p Offer: 271p Change: 41.5

And judging by the 1p spread, the MM's are still trying to encourage buyers.

Looks excellent & many thanks ST :-)

:o) I'm glad you're glad, Silver.

A nice little flourish to end the week: SOLA Bid: 268p Offer: 274p Change: 4

hoping for a strongish pullback sometime soon so I can go in for more 8-)

I am surprised more MoneyAM people aren`t in SOLA, even now they still look cheap and they are almost a bagger for me.

Not selling any of mine yet and will buy more on any dip.

Interesting post from well known private investor Paul Scott over on the TMF site..

Hi,

Cootuk2 asked ...

Given recent RNS about production expansion and historical profit margins, what puts you off?


Although this question wasn't directed at me, I'm going to stick in my tuppence-worth anyway !

A fellow investor put me onto Renesola, and gave me a detailed briefing about it over the telephone, following which I DMOR up to a point - i.e. didn't spend a huge amount of time on it, just enough to form the view that it's not for me.

It's difficult to work out why this share repels me. Every instinct tells me not to go near it. Reasons ?

1) Chinese business ethics - without wishing to Libel 1 billion people, it has to be said that the Chinese have a pretty dire reputation for business ethics, so personally I probably would not invest in any Chinese company, regardless of its apparent appeal.

2) Political risk - the West probably relies too heavily on China now for manufacturing most of our consumer goods. But whilst Bush is in the White House, anything can happen. It's only a matter of time before the US & China run into a major conflict, IMO. Maybe not military, but certainly economic conflict.

3) The regular newsflow about ever-larger increases in production capacity by Renesola just strike me as being a bit suspicious. Yes, it does sound too good to be true.

4) The story has been very well promoted, and is now widely known about in the investing community. So there's a seemingly endless flow of investors prepared to take the stock higher - until it eventually crashes of course, as it will (IMO). This has all the hallmarks of a bubble.

5) My contact on this didn't seem to think that Renesola had any particular Patent rights over their processes to make solar panels from recycled silicon. So my worry is that, seeing Renesola making spectacular profit growth, competitors will be attracted into the same space until the growth stops.

6) Sustainability of profits & growth. This is the big question mark really, and links in with point 5 above.


It may well be the case that Renesola turns out to be a spectacular investment from here, before it eventually comes down to earth with a bump. The market can & does regularly take growth stocks up to crazy valuations, so the bulls of this stock might well end up laughing at those of us who don't want to touch Renesola. I just hope people top-slice on the way up & are out completely by the time the tide turns.

All just IMHO.

Regards, Paul.

IMO he is correct in most of what he says, but there is no disputing that many of us have made a good profit so far out of SOLA, so I see no reason not to invest in the short term. But, keep locking in profit as the sp cannot continue to go up like this forever.

SOLA Bid: 280p Offer: 285p Change: 11.5

Harry .... don't disagree, but having taken a profit a few weeks ago, have just bought back in at quite a lot more than what i sold out at, though that too is now in the money

Harry .... don't disagree, but having taken a profit a few weeks ago, have just bought back in at quite a lot more than what i sold out at, though that too is now in the money

I also took profit a couple of weeks ago. Will wait for a dip & have another go, but think 285p is a bit steep at the mo.

Vertical take-off this morning:

SOLA Bid: 307p Offer: 312p Change: 21.5

Renesola DO NOT make solar panels.
They make the cells that go to make up solar panels.