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

There are some chinese mink blanket which are far more superior to cheap cashmere in China.

Err....the news last week was not detailed, and was in fact a "profit warning" all snuggly wrapped up in sweet words.

I said a long time ago this was one to trade, and it has been so far.

A placing is very likely now imo, which is going to dash all those earnings forecasts somewhat. It might leave them better placed longer term, but there could be some shorter term issues now with falling margins and profits not to expectations.

Interesting times ahead.

Papalpower explain how it is profit warning?

Current Trading statement:
Sales $86m
Profit $22-23m
Prod increased from 14MW to 80MW (Prod to increase to 150MW)

In 3rd Quarter Results
Revenue $28.4m
Profits $8.5m
Prod. 13MW
Net Profits $7.9m

There is nothing to compare really from last full year report because there is not one avaliable. The only downside in current pretrade report :

By the end of the fourth quarter of 2006, the Company had completed the
installation of 14 wire saws which slice the ingot output of the furnaces into
wafers. This in-house capability is designed to enhance gross margins, both
through the elimination of third party costs and through the slicing of thinner
wafers, thereby increasing wafer yield per ingot. The initial operation of the
wire saws involved a learning curve for staff, which was made steeper by the
planned reduction in wafer thickness. This resulted in a higher than expected
level of wafers which did not pass ReneSola's quality control standards and
therefore required reprocessing. The Directors strongly believe that rigorous
product quality control is essential in building ReneSola's position in the
market and are pleased to report that good progress has been made in resolving
the issue.

PBT figures.......8.5m......lower than forecast.

This post on TMF explains it.


http://boards.fool.co.uk/Message.asp?mid=10415238

PP,

Absolute nonsense. Ive been following this company since August and the detailed analysis on NFVDA (reversed) is as precise as is possible. Once SOLA's employees are attuned to the new sawing machines you will see a dramatic rise in earnings/wafer which will kick in Q2/07. Its output for the next 18 months is secured on long term contracts. Sales price/wafers is higher than previously expected as per contract with JA SOlar and the MW upgrades are in fact an pre-ordained profit upgrade. On an EPS of 60p for 07 and 120P for 08 the p/e will fall to single digit. Capital expend is being financed through prepayments from sales contracts to the tune of 30% on the total value of each contract, bank loan and cashflow. The Q4 earnings 'minor short fall' is in fact in line with Merrills forecasts. Raw materials are now in place for 2007 and with tolling arrangements in place with its customers you have a visibility of earnings that cannot be matched by many companies on AIM. Deloitte Touche as been appointed as auditors.

The company as only been trading since 2005 and its performance to date as been nothing short of superb. Even if the price falls back to 450-500 it won't stayn there for long. The price fell over 16% on friday. Pray tell me what was the closing price at 4.30pm. More to the point what was the price at 4.00pm? Let me tell you..It turned BLUE and closed -7 points. Profit warning? Bullshit.

In the medium term this stock will touch 10 before summer 07. With sales contract extensions to come and factory and new furnace/saws nearing completion then its a very rosy picture moving forward.

One line comments from do not measure on the richter scale of intense analysis. Very amatuerish and worthy of the bin

F18

Papal power is a good contrarian indicator imo.Im remaining long in a trade and long term.Are you short papal power?

Papalpower
Do you have a link to a broker estimates?

How come your link does not show the whole page with other comments?
There was an interesting article by someone else before the last message you provided.

Guys use this link and read the one above the last.
http://boards.fool.co.uk/Message.asp?mid=10412867&sort=whole

I have no position at present, if you go way back on AFN I have stated long ago when this was 130p it was going to be a great trading stock (the same was posted by me on TMF a long time ago too) and so it has been. Simple fact is, never fall in love with a share. As you'll note they need money, if this does come in a placing then its going to dilute the earnings figures. PBT forecasts were higher, so this is a profit warning as such. The additional margin generation is going to take time, don't expect it to fly in Q1 figures for 07, its not going to, therefore they may be additional PBT shortfall. Present SOLA lives on basically zero tax, the tax rate will increase from this year onwards for three years, which will cut into PAT and therefore earnings.

If you are blinded by love of a share to see the underlying events, be careful. The drop was caused by sellers, the rise back by short terms trading the bounce. This has a large PI following now, which will make it erratic and volatile, and it will remain a trading stock, for ups and downs imo.

Given that many are saying a placing is likely, and this has been a defacto profit warning with PBT lower than forecast, my next position may be short, although it also may be long, that depends on the sentiment this week :)

Excelent post PP.

Lets face it if any other company on the market failed to meet Broker PBT forecasts, it would be hailed as a profit warning and treated as a profit warning by the market.

Sola appears to have got off this time because of an over enthusiastic following and a bullish outlook statement.

Audited results could halt the party.

And I also believe a fund raising round is on the menu, not entirely a bad thing but it depends as to why the funds are needed.

This is an exciting and debatable stock to follow. I hope holders do well out of it.

Very true goldfinger, and also very true that everyone wants everyone else to make money, and as Friday showed, a quick short down paid money, as did a reversal for a long on the bounce.

pp,

'the tax rate will increase from this year on'..absolute and total lie..take a look at AVDNF earnings thread and you will see that this statement is a falsehood. you're spouting crap and baseless nonsense.

'sola basically lives on zero tax'..what a moronic comment..it has sales contracts coming out of its ears with more to come. It is well known in the PV industry that silicon manuf's will only invest capital on the basis that their customers fully intend to place further orders. this is well known.

2007 is the yeat when SOLA will come into its own.

2007 = 60p * pe15 = 900p
2008 = 120p 8 pe 15 = 1800p

f18

fortitude, you really have not done any research have you ???

Take a look at the IPO document from SOLA, its available to read. You'll see they benefit (like many tech start ups) with low tax rates for the initial years, and these steadly rise up to the normal levels.

SOLA will pay tax in financial year 2007, its results to come out soon for 2006 will have no tax.

The admission document is in the link below, please do read it, you may understand more about the company you seem to have fallen blindly in love with.

You'll find reference that, on page 41, the company is exempt from tax in 2005 and 2006 but from 2007 onwards starts paying normalised company tax rates.

You may also find that while the 2007 orders book is fine and its going to grow, 2008 onwards is not.

The major event will be the one year lock in period end, if its all been a flash in the pan, then at that stage the selling will be high as the original holders lock in' expire and they can sell and cash in their profits.

http://www.renesola.com/download/AdmiDoc.pdf




fortitude18 - 19 Feb 2007 07:46 - 685 of 685
pp,

'the tax rate will increase from this year on'..absolute and total lie..take a look at AVDNF earnings thread and you will see that this statement is a falsehood. you're spouting crap and baseless nonsense.

'sola basically lives on zero tax'..what a moronic comment..it has sales contracts coming out of its ears with more to come. It is well known in the PV industry that silicon manuf's will only invest capital on the basis that their customers fully intend to place further orders. this is well known.

2007 is the yeat when SOLA will come into its own.

2007 = 60p * pe15 = 900p
2008 = 120p 8 pe 15 = 1800p

f18

By the way, I am not anti-SOLA, I am trading it up and down, short and long.

However, my advice is make your money before the lock in's expire, as SOLA could well go bang before end of 2007, if the 2008 order book does not come in, they will have lots of capacity and minimal demand end of this year.............

Make the most of it through the first 3 quarters and then be careful from Q4 onwards imo.

You`ve hit a nerve here PP.
I agree totally, a classic trading stock.
Cheers.

PP .... sounds as though you have a similar mentality to me .... mal chance!!

pp,

i cannot allow such baseless and blatant lies go unchallenged. It's not whether you're anti or pro sola it's about having the integrity and decency to post opinions which are based on fact. 'If the order book does not come in'.. they already have contracted orders up to the end of 2008. The company is in negotiations to secure contracts for the extra capacity based LOI's.

You're understanding of this company and the industry in which it operates is not worth the paper it's written on. You're comments regarding this company are simply worthless and not based on fact.

Its people like you who make threads like this a worthless waste of time.

forti ..... why do you get so heated? ..... surely a young chap like you does not suffer from hyper-blood pressure? ...... you may be right that PP's comment is inaccurate, but i would certainly agree that SOLA's volatility makes it a great stock for trading

errr....what about those "tax rate lies" for a starter.........LOL ;)

Enjoy the ride........thats what its all about, no need for the emotion.

When is 'D' day for lock ins PP?.

By the way totaly agree with you about the tax rate. Lets face it, its there in black and white in the admission document.

Lifted this from another B/B..

Evils take on the results...

I see that Renesola (SOLA) has published a full year trading statement saying that pre-tax profits will be $22 million. Now this company does not pay tax but on a normal basis that would be earnings of 7.8 million which puts the stock on an historic PE of 72. Renesola has a thin balance sheet and is not a cash generator. It strikes me that a fund raising is inevitable and the valuation is a joke. I remain short.