I bought 100k shares in after hours below $1.20. Analysts on the call seemed pretty much satisfied with the company's progress and the August back to school update was VERY encouraging. I am looking for some constructive analyst commentary tomorrow morning and even hoping for some upgrades (but that might be too early).
Given their execution history you shouldn't believe a single word of management's projections. They have always missed their numbers, why should next quarter be any exception ?
Missing each revenue projection by a mile, burning cash like hell and now all of a sudden having to finance their customer's purchases. Even the remaining cash balance and quarterly cash burn are roughly the same here. It will be a tough race to chapter 11 but both will cross that line, no doubt about it.
No, distributions have clearly peaked and they will need to set aside some cash to prepare for 2017 and beyond. But at least they look safe around the current level for a couple of quarters more. Bought some at $8.10 on the undeserved sell off caused by fears over the dividend but sold now at $9.50.
As expected the company does not change its dividend policy as long as cash flows continue to more than cover the distributions. 2016 should see at least another $2 in distributions for unitholders but 2017 will most likely see a signifcant cut as new contracts currently would be cash flow neutral at the very best.
While I generally agree with your view on Chinese takeout offers I would imagine this one is for real and will most likely get done but perhaps not at the originally supposed price point given the severe issues the company's business is experiencing currently.
Given their contracts they might cut back on the distribution slightly but in fact their cash flows should be pretty safe well into 2017. If SDLP does not announce a significant distribution cut tomorrow the shares might move up very meaningfully.
It is a fact that 2/3 of the notes are already history. It is also a fact that the current unrestricted cash balance of Renesola does not cover the remaining $62 mln.
If they borrowed shares from Renesola and are still short those shares the company would be very happy to issue new shares to them for some badly needed cash infusion I guess. But there is NO such position of course.
There's also no lack of availability. Buying 5 million shares over a few weeks wouldn't even double the share price.
Here's my advice:
Take your tax loss and buy one of the Chinese solar leaders. At least you will never have to worry about conspiracies then.
Well, my hometown in fact is near Bremen, Germany and I have never been to Switzerland in my whole life. But I would guess that their investment banking is mainly located in London and New York anyway.
Frankly speaking I think you are an idiot. There are only $62 mln remaining of that convert and I don't believe today's holders are the same that bought the convert initially. It does not matter anyway. In fact the short interest in SOL has been at a six month low as of late (just below 6 mln ADRs) and has never exceeded 8% of the total outstanding shares during the last year.
So if someone got short at $10 he wouldn't care too much if the shares are doubling or even tripling from today's price to get his position covered. But actually this wouldn't be necessary anyway. Any potential hedges against the note have been long dissolved given the share price development over the last four years.
This kind of conspiracy nonsense pops up in every loser discussion on hundreds of message boards. Marketmakers, Investment Banks, Shortsellers, Hedge Fonds... they all are supposedly working against thousands of loser stocks at the same time. It is not that the companies didn't live up to expectations, of course.
This is a tier 3 Chinese solar player with a very weak balance sheet and poor earnings power. Next time the solar maket takes a beating they will be out of business most likely.
No one cares about this company anymore. With an average daily trading volume of just around $600k no major player would enter a position.
Would short the move as the earnings were disappointing, Q3 will come in MUCH weaker and no visibility into Q4 so far. Everyone is hoping for a strong rebound which might happen or not. Conference call nothing to write home about. Sell.
The balance sheet continues to weaken as cash was down a whopping 20% qoq despite accounts receivables being down 33% and inventories up only slightly. On a more positive note the company overall debt decreased slightly and the company lowered their accounts payable by 15%.
On the call the company expected $100 mln in cash inflows from the sale of project assets but these proceeds will have to be used to re-develop the exhausted project pipeline - given the current market I don't think the company will be able to secure cheap outside project financing despite the recent central bank rate cut in China.
Q3 might show positive eps and even sizeable cash flows given the company's guidance for revenues, margins and project sales so trader's might want to position themselves shortly before the next earnings release.
Investors should continue to avoid the shares given their balance sheet, strategy and execution issues. When looking for exposure into Chinese solar names try market leaders like TSL or JKS. Even JASO looks like a good play currently given they buyout offer on the table.
There's nothing to convert if Renesola pays back the notes...
I guess they might be able to pay back the remaining notes by digging deeper into their short term credit lines but this is not a given at all and depends on the market at that time.
There's no need to comment on companies where things are moving in the right direction. The results speak for themselves obviously. And actually I don't know why you seem to be obsessed with that Credit Suisse stuff. That deal was arranged back in 2011 by Barclays and Credit Suisse and that's all about it. It's a convertible deal like many others, so why does anyone still care about it other than about the money to pay it back next year ?
When looking for exposure to the Chinese solar industry there are plenty of companies showing great execution while operating profitably and are trading at very low valuations. TSL, JKS, JASO are some examples here. JASO even has an offer from the chairman on the table for $9.69...
Well, they repurchased a whopping 0.7 mln during the quarter actually :-)
As of today most of their cash is restricted so they wouldn't be able to repay the convert without relying on more short term bank debt. The downstream business needs huge amounts of working capital so things won't get any better from here. Management already threatened on the call to get "more aggressive" with regards to project financing which actually won't make investors feel more comfortable with the shares I guess. They are seemingly always late to each party in their industry and shareholders have been paying the price for many years now. It would be better for the industry if this one ceases to exist going forward.
The company isn't priced for failure at all. Enterprise value stands at an astonishing $1 bln which looks incredibly high given the lack of strategy and execution the company has consistently shown. The convertible note due in 2016 will push the company to the brink of bankruptcy.