Renesola - Chinese Solar Panel/Silicon Recycling

Hi,

A profit warning you say . And where did you get this idea from.

Given that Renesola have all the polysilicon required for the production in 2006/7 that there customers have increased there requirments (and will be supplying polysilicon as well as some prepayments) that the production capacity has increased dramaticly.

The margins will rise due to in house wafer slicing.

I feel a unexpected profit INCREASE is on the cards for the EOY results which will further commit those insti's sitting on the sidelines waiting to see if the EOY figures deliver.

When SOLA issue a trading update confirming the additional orders from customers and then the EOY figures the SP will rise.

The recent little price fluctuations which show strong support around the 400-420 mark will seem small, on the first release the SP could reach 550 and then with the confirmation of JTCOD's predictions for 2006 will send the SP closer to the 650 mark.

There are many like my self who have funds ready to buy in at sub 400 but even if it drift down to these levels any news will push the SP upwards.

It will be very interesting to see if we have a sudden amount of heavy buying from instis who will be keen to start the new year with some solid growth.

This company offers good economics,clear goals and high margins all of which are clear to see.

In my opinion we will only see a sufdden drop if they announce any production problems or constraints due to shortage of the polysilicon for 2008 by whicxh time the SP will be closer to the 800 target in any case.

The management team know the bussiness and for me they have dealt with the last massive expansion very well, they have been at the forfront of reproccesing and have a huge advantage over there rivals. Even if others try to follow Renesola it will take at least 1-2yrs to catch up and by then Renesola will be even stronger.

They are pushing forward with the R&D department to make further gains in both production and processing , they have also shown a great deal of sense when using the additional mono furnaces to cope with the extra demand and given that the new multi furnaces were not due to be delivered for a few months have moved with further expansion and have already agreed to purchase the secon new building.

I dont know what some people require out of a investment but in my book Renesola gives me a lot of confidence, as ever there are outside risks but so far they have met all of my requirments and I will continue to invest and support this expading company.

But please feel free to let us all know if you feel I have missed anything.

As ever DYOR

Russian.