There are many who bemoan Renesola for all it's flaws, but if there's one thing that's true - this stock is a traders dream. The arc and breadth of the stock's price movements can be utterly breathtaking as it sits at the heart of many investors long term radars - standing astride the twin investment themes of alternate energy and China.. but catch the wrong side of the trade and you can be devastated... and herein lies the art.
Renesola came to AIM priced at something around 80p and proceeded to confound everyone's expectations partly through terrific performance, and partly through sheer dreaming... hitting heights about £6 within less than 8 months... but then the reality started to bite. The company needs a huge amount of financing to implement it's strategy and will always be at the mercy of sentiment especially in this credit crunch. But they've recently secured further financing from 2 of the biggest chinese banks and are still raising their output numbers.
I haven't held SOLA for almost a year, but with the recent volatility in the stock bringing it and all it's solar wafer friends down to extremely low valuations... one has to wonder... this bust will separate the wheat from the chaff in the solar industry - it's going to be a ride.
