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

and judging by today's market reaction, south will almost cetainly be the next direction ...... if you do not intend to hold long term, then it might be deemed wise to exit now, as if selling gets the remotest momentum, it is likely to be sudden and vicious.

there we go...

PTH look at debtor days.

gf

Afraid I'm not much good on fundamentals, but they seem to owe an awful lot of money, have an awful lot of stock, already have one(?) bank loan and are trotting back, cap in hand once more; and that after just raising $120m. The administrative expenses ($2m) seem exceptionally low for a company of this size, generating this turnover. I know Far East labour is cheap, but what about the fat cats sitting at the top, I'm sure they are not on minimum wage.

pth

PTH's charts are much better and more sophisticated than mine, but herebelow is an easy to read large scale chart ..... 25+50 dma are swiftly converging at about 515 and ought to lend some decent support .... however, if this level is broken, then as PT says, there is no floor until about 450

Looks as though this could go, small volume for now though.

Go? Up, down, sideways, nowhere?

down, I was meaning

Ah. That's what I thought, but was hoping you might have an insight in to why the opposite should happen! :o)

Had a look at December balance sheet and it frightens me. If my arithmetic correct, then sales in final quarter were just over $35M and gross margin just under $9M (25%). Third quarter sales were $28.3M and gross margin $8.5M (30%). Trade Debtors figure risen from $32.3M end of Sept to $34.5M end of December, so they look to be collecting in slightly faster - they need to because stock levels end Sept $25.5M risen to $44.5M by end of Dec. Add in investment in property/plant etc of $17M in final quarter and it is easy to see why they needed the convertible issue as a temporary measure to help the cash drain. Combination of rapidly rising stocks and severe drop in gross margin makes me steer clear of this one for the time being. Always DYOR.

debt book of 90/120 days is downright scary .... if terms are the customary 30 days from date of invoice, then there are some serious credit control questions to be asked ..... it is something of a truism that once a debt is more than 90 days overdue, it becomes progrssively harder to collect ...... and how much of this debt is actually (say) 180+ days overdue, implying potential bad debt?

Cynic - Difficult to gauge days outstanding when sales growing so quickly, but on the face of it year end debtors roughly equal to final quarter 2006 sales i.e.about 90 days. Don't think this is too unusual in Far East (willing to stand corrected by someone in the current know, six years since I was last involved). As above, gross margin and stock of more concern IMHO.

Shorters need to be very quick on their feet here, as their opportunity will probably only last a few days before the brokers' reccs from Monday's CC arrive. The rate at which Renesola is expanding capacity, production and sales is throwing off the normal effects of inventory and debtor settlement.

I see the advanced ramping force has arrived from the other side. I was having a read of the ADVFN thread last night, the shorters on MAM got a few mentions - LoL

No doubt the Broker loons of certain houses will puff this one up again come monday and after, but the fact is and Ive maintained this all along that the company as a piss poor balance sheet and doesnt seem able to generate cash.

Yep its growing like topsy, but its the management of that growth that investors need to look into rather than the froth created by the paid broker houses.

Well we're bang on 515p and all the ducks lined up in a row....

goldfinger "...and doesnt seem able to generate cash."

I think you might mean free cash. They are throwing off cash like billyho but they are spending it on property construction, saws (top quality stuff from Switzerland) and furnaces. It's coming in fast and going out fast on production capability because demand is so strong. I can understand anyone feeling frightened about the pace of things here. It will be too hot for many.

Alleyne - you are looking through rose tinted spectacles. Generation of cash imo (and I suspect GF and most others) is taken to mean cash produced from operating activities i.e before any capex on property, equipment etc. Free cash is after those things. In the 6 months to June 2006 Sola had operating cash surplus of $6.5M. In the three months to Sept, that changed to operating cash outflow of $7M and if my maths is correct (numbers a bit trickier to work out) in last three months of last year that operating cash outflow was 13.7M. Glad I am not a holder (had considered it a month or two back, but decided to wait). Not a shorter either, not my style.

partridge, we're saying exactly the same thing about cashflow. I can see why you are concerned about the movement of cash and understand completely why you are not in. I can assure you there are no rose-tints on my nose. I would not dream of calling you a shorter and have not done so. Good luck with your investments in other areas.

Fair comment Alleyne - I will now watch with interest over next few weeks!