E Sunday Update

After our shortened last week, again we have news that I want to share which I think is more important than a mid month update on our performance—particularly since last week ended in the red again.

*First off is Max Deml from Vienna with a new solar small cap he just added to his Photovoltaik Index after two other stocks exited. He only lets 30 companies into this index, and most of them are local European trades we cannot join in. But today there is an ADR, so I am telling you about ReneSola Global Ltd.

The company, which makes LEDs, solar energy parks, silicon, wafers, and modules issued 2.5 mn new shares on Jan. 11, at $16/share, raising $59.6 mn. Note that each ADR equals 10 local shares.

Also note that the stock trades at $33.55 after the issue or double what it got for the new shares and had a market cap of $2 bn (euros 1.65 bn).

The parent company is American, out of Stamford CT, NYSE-listed as ReneSol (ticker SOL) but its head office is in Luxembourg, a European tax haven. It has the ability to build for solvent utilities and commercial companies. It also does supply chain management and just-in-time energy collection, storage, and logistics. It also provides guarantees and after-sales service and parts.

Since it listed in 2008, ReneSola has shipped or supported 12 gigaWatts of solar products, to customers in 40 countries. It signed a RMB 2 bn cooperation agreement with China late in Nov. via a jv called Renesola Energy Nantong Co. Ltd, joining its China based Renesola Yinxing.with Zhongnan Industry, in the Hainan area, where it will manufacture solar pv products. It has subs all over the world, like in Romania where it just sold its solar parks under a build-transfer deal.

It has cash flow but is no earnings yet but expects to turn the corner this year earning 31¢/sh. Ir has a highly volatile trading history having in the past year traded at $35.77, its high, and (hold your hat) 85¢. As with our play on geothermal (Ormat, ORA, sold down) it gets investors in part because they want to tick all the boxes in green energy. I think that I will wait for a lower price before jumping on board but I am an old skeptic. Max is an enthusiast. While this is not GameStop (GME), it comes close.

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