Newspaper article The Evening Standard (London, England)

Punters under a Cloud as ReneSola Loses Power

Newspaper article The Evening Standard (London, England)

Punters under a Cloud as ReneSola Loses Power

Article excerpt


INVESTORS in ReneSola would like to stick their shares where the sundon't shine after they briefly dropped below 200p today.

Shares of the Shanghai-based company, which makes wafers for solar panels outof old computers, have slumped by more than a quid since last week's profitswarning.

They are certainly well shy of their peak of 639p, reached in February whenthey were being tipped by every man and his dog as the next big stock-marketplay.

When they floated last November, the shares were valued at 79p, and the companywas boasting about a significant increase in production targets for 2007. Then,last week, came the shock news that things were not going according to plan.

The group again downgraded its 2007 guidance of 150 megawatts of productionoutput to between 120 and 125 megawatts.

It blamed delays in deliveries of crucibles for its new furnaces, which haveput back the start date for multi-crystalline production.

This is now expected to make a big dent in full-year numbers. The characterspushing the shares on the way up have been noticeable by their absence on theway down.

ReneSola later reduced the deficit to 4p at 206p with Ambrian Partners tryingto calm things down by saying the shares were oversold.

"This is a great opportunity to invest in a fast-growing solar wafermanufacturer. We recommend investors buy towards our revised target price of400p," it said.

Shares generally staged an impressive turnaround, clawing back early losses.The FTSE 100 index, which had been down almost 46 points at one stage, latersettled 6.9 higher at 6109.1. Turnover remained low, which might explain howthe market could turn on a sixpence in such a short space of time.

The Dow Jones Average rallied 61.90 to 13,103.70 in New York this afternoon .

In London, Whitbread put on 51p to 1609p despite delaying a big cash return toshareholders.

Deutsche Bank has raised its earnings forecast by 10% for the current year andby 6% for 2008. …

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