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

For 'cynic', you might know another poster called "gastrader" on a a rival site, here is the latest text from SCSW



SCSW finish their article with "Given the growth rate we can see the shares testing 300p in short order. Still a buy"

That's 60% upside from where we are now. Given the influence of SCSW on PIs, I think that statement is enough to get this testing 200 on Monday. We shall see. :-)

Anyway, here is the whole article for those that are interested:


Renesola gapped higher following a trading statement which said roll-out of its mono crystalline furnaces has been completed ahead of schedule and all 90 furnaces are operational (this was expected by the end of 2006). The companys commissioning of wire saws to slice the silicon ingots into wafers is also progressing ahead of schedule, with the first saw already operational, four additional saws being installed and the remaining 17 saws should be delivered by the end of 2006. Renesola also said it has entered into long-term sales contracts with three solar module producers. Over 90% of capacity for 2007 is now pre-sold. Broker Ambrian forecasts sales of US$90m and profit of US$22.6m this year, almost US$4m ahead of the forecast we included last month.

Given the growth rate we can see the shares testing 300p in short order. Still a buy.

SCSW, have also added sola to their portfolio, the only for this month, if you look at the learned folk on the rival site, supplies should NOT be a problem.

could side with either argument ...... if FTSE manages to consolidate above 6000, it is quite likely to climb quite sharply and perhaps take SOLA with it ..... while i would accept that 200 or even a little more is far from impossible in that scenario, my own view is that "testing 300p in short order" is more than a trifle optimistic.

The folling is an extract from another poster on a rival site

Gas Trader - 6 Oct'06 - 10:53 - 4849 of 5055
,,,,, only listen to those who are telling you to buy when they are offloading...
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
Without selling a single share and borrowing to buy more, I have been vociferous in telling PIs that I expect earnings of 14c with the next results and 19C for Q4, then 46C for Q1 07 - That is to say 7.6p,10.3p, and 24.9p for Q3 and the two consecutive quarters. That points to a minimum of 70p for the rolling year ahead. With nil tax charge that points to a PE of under 3 and huge current undervaluation.

I am not normally malicious but I look forward, with near certainty, to the humiliation for this loud mouth unless he disappoints me by closing his position. Others who may be astonished by the view I am taking might like to see the numbers on which my own forecasts are based

.....................Q1..........Q2.............Q3.........Q4 .........Q1/'07
Ovens installed 16 36 av for Q3...54 90 90+15 Multi/C
wafer slicers 1 av for Q3....3 5 24
SALES $17.1m $24.1m F $36.0m F$60.0m $90.om
gross margin 25.7% 31.7% F 34% F36% 38%
gross profit $1.736m $5.6m F$14.6m F$21.6mF F$47.30m
selling expenses $0.083m $0.112m F$0.170m F$0.240m F $0.330m
Admin $0.193m $0.387m F$0.550 F$0.730m F $0.910m
OPERATING PROFIT $1.532m $5.200m F13.880m F$19.630m F 46.060m

the above figures include an extra sales yield of 10% on the part or whole volume of ingots sliced in house, as well as a $0.40 per wafer reduced from cost of sales where appropriate. In Q1 that adds $9,000,000 to sales and reduces COS by $5,000,000.

After the Q3 results I and others foolhardy enough to attempt forecasting will be able to to calibrate their own efficiency and adjust Q4 and owards. Q2 '07 should by then be visible. The outcome will depend on whether further ovens and wafer slicers have been ordered for delivery before April.

Very lively this morning !!!

SCSW have a target of 300p in their latest update.

Ian

Morning all,

Based on SCSW's figures, 300p would be a PE of just over 25 times earnings - and this would drop considerably fo 2008 based on SOLA's intention to increase capacity by a further 50% (to 125 MW) in 2007.

Seems reachable to me.

FWIW I don't think that supply of silicon should be too big a problem given that SOLA is able to recycle waste silicon from other applications. If supply was to get tight then I think I'd take the view that I would cross that bridge as I come to it. The main thing for me with this stock at present is to profit from the rise that the earnings figures over the next 18 months or so are sure to produce.

PDYOR, etc.

http://moneyam.uk-wire.com/cgi-bin/articles/20061010070000P6004.html

A very bullish production update this morning. A significant increase in planned production:


2007 Production Capacity Expansion

The planned expansion of the Company's production capacity has been revised
from 125 MW by the end of 2007 to a target of 180 MW to address the strong
market demand for solar wafers. To supplement ReneSola's existing 90
monocrystalline furnaces, it is planned that 100 MW of new production capacity
will be provided by multicrystalline furnaces. The Company will then have a
balanced product output to better meet the market demand. In tandem with the
capacity increase, the Company plans to install an additional 24 wire saws to
slice the ingots from the increased production capacity into wafers. The
capacity expansion will be financed through a combination of the proceeds of
the Company's recent flotation and operating cash flow.

That SCSW target of 300p is only the start !!!!!!!!

Ian

onwards and upwards! This little gem has hardly been noticed by the big boys yet glad we're in early.

Fantastic news! - great post, Ian, thanks!

So the expected production ramp-up by year-end 2007 compared with year-end 2006 has increased from 56% to 225%. And the best bit is, we still haven't seen the company post a full year's results for its planned full capacity for this year of 80MW, so there is a lot more growth to come.

I like the sound of 300p, which could now easily be realised by the end of this year, however, by my reckoning a price of 8 a share could be on the cards over 18 months.

PDYOR, etc.

Quarterly results due in mid-November? I can't wait . . . .

Nice rise this afternoon: SOLA Bid: 210p Offer: 214p Change: 11.5 2.3 mil shares traded.

Had a feeling it wasn't going to stick at 200p for long.

If its good enough for SCSW then its good enough for me , editor has a holding in it too I believe.

At this rate it will be at 3.00 by mid Nov.
If only IQE had done me as well.

i agree that this is a very interesting stock indeed, but don't forget that neither markets nor stocks rise (or fall) in a straight line ....... Both Dow and FTSE are now overbought and are due for a correction, albeit that that may only be for a day or two ..... If that happens, i would not be surprised to see some quite heavy profit taking in SOLA, which could then present a buying opportunity

cynic - are you waiting to get in, holding or/& waiting for the drop?
I am holding, but happy to take profit & buy again if your prediction is accurate.

confess i took a profit a couple of weeks back as i did not want to stretch myself, and had my eye on a couple of others that happened to do well for me - SHP and FTSE ..... I am now out of those too, and also TLW which is close to a quite strong resistance ...... So, i now have ample funds in hand as and when needed, and more to the point have managed to be prudent for a change.

Good to hear a success story for a change (fed up with oil dusters!).
The tricky bit is now knowing when the bounce will come, but a trailing stop should allow for that.

I think it's possible to get a little too tied up with charts on some stocks. SOLA is growing and producing profits at an alarming rate and I wouldn't trust myself to time things correctly if i was trading the stock. As it is, I have been in for two months and am up 51%. The good news is going to keep flowing for a while, so I see no reason why the SP rise shouldn't continue.

SOUL* ..... you were absolutely right when you brought this company to my attention, and i agree the company looks great ...... only really took profits as they had gone a little sleepy and i had my beady eyes (correctly for a change!) on a couple of other things.

As i said, if there is some decent profit taking, which is far from impossible within the next couple of weeks, then i shall be buying in again.

The following was posted on the other side and allegedly summarises a 'buy' note by Credit Suisse. Haven't read the original material myself, but the other lot are going mad for it.

matt9991 - 12 Oct'06 - 19:26 - 6164 of 6499


Summary paragraph from cs note

China based Renesola listed on London's AIM board in August, this year, at 79 pence. Currently trading at 200 pence, we think its worth at least 300 pence (50% upside). Its competitive advantages include proprietary technology, scale and cheap labour. Not only did the original investors not sell into the IPO, but some increased their stake at IPO price. The company is increasing capacity at a phenominal pace and has already pre sold for 2007 90% of current installed capacity. Credit suisse's research team does not formally cover the stock but our back of the envelope calculations indicate that the company is likely to make NPAT of US$50mn in 2007 ( from an estimated us$18mn in 2006) and us$100mn in 2008. At the current price of 200 pence, this puts the stok on a p/e of 7x for 2007 and just 3.5x for 2008. Next catalyst: 3q results to be announced mid-november.

Please excuse spelling. My 10 month old has been hiting me with her drink bottle.

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