First of all, there may be no issues with the SOL panel product but they've already shown there is little growth in the panel market. I am referring to their micro product. I do speak to installers directly as recent as last Friday and they seriously have only heard of Enphase and Power One. There are honest issues with Power One micros in a big way. These issues are clear to anyone who's tried them. Just hearing nothing yet on the Micro Replus.
SOL has always been in China and that clearly was not satisfactory for growth. They know they need to expand well beyond China to succeed. That's why SOL spent the necessary to get approval to sell the Micro Replus in half a dozen countries this year. Any positive analyst reviews are based only on the potential those approvals gave them to expand.
I'm well aware of the Quarterly YOY. That's distribution on certification approval and you know it because it looks nothing like ttm profit which is (-35.7%). Now they have to get these new micros off the distributor shelves. They have to convince installers that they're better than what they're already happy with. They've had approval for quite some time and I'm asking for ANYONE who has seen these replus micros performing on rooftops to cite a link because I haven't heard of one single U.S. or North American system or found one on the web.
With the exception of a possible head and shoulders forming, the chart looks 'okay' back to $6 but no earth shattering bullish patterns.
If it stalls here around $5, then it's head and shoulders back down to $2.
As for the product, I still can't find an installer willing to repeat even a second install of Renesola micros let alone claim product loyalty. PLEASE chime in if you have evidence to the contrary.
Then there's buyout potential. The $1 billion SOL debt gives this one a negative ($-34.00) enterprise value.
Buying the company would mean paying the debt plus paying a share price premium high enough to win the majority board. Why would anyone do either let alone both.
If you want to invest in SOL waiting for profit, you've got a long road ahead with this one.
Nobody thinks about anything beyond next week anymore.