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

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!

Alleyene... I stand by my earlier post....

goldfinger - 27 Apr 2007 10:52 - 945 of 997
Well after wading through all the puffery at the top of the accounts if one looks at the cash flow statement theres nothing there that as changed from quater three.

Cash outflow on working operations of just over 14 million. And a ever rising inventory.

Little wonder they need further banking arrangements on top of the bond issue.

Some across the road are not looking at the finer detail. ENDS.

Remember its cash that counts.

GF, but you've been singing the same song since 150. A quite appalling call if you ask me.

well i haven't though i accept that it took some persausion to get me into this stock intially ..... having done very well when it was on its way up, and being told i was an ass or was for banking my profits when i did, i am now short at 544 and very glad to be so, with a target perhaps of +/-450

Morning All.

Cynner, I thought you might still be short - and smiling at current price: SOLA Bid: 491.5p Offer: 495.75p Change: -14.75

My Dad and I got out at 530-ish a couple of months ago - seems we did the right thing, but I'd be interested to see when this one gets backon the upswig.

Good luck to all.

Cynner? Sinner?? ..... either way lol!! ..... am indeed very happily short and expect to stay that way for a bit ... chart below indicates some possible support at 480, as appeared to be the case this morning; once through there, then certainly another 40p drop on the cards

For me the 440p is the place to test for the real support at 400p

oh dear! I'm very relieved I switched some into TMC and VIY yesterday--I still have a sizeable holding though. It's difficult to buy many online so I suspect good news is coming soon and the mms are holding onto stock. only my opinion ever the optimist!!