Company Update (NYSE:SOL): ReneSola Ltd. (ADR) Announces Third Quarter 2015 Convertible Bond and Share Repurchases

ReneSola Ltd. (ADR), a leading brand and technology provider of energy-efficient products, announced that during the third quarter of 2015, the Company repurchased $36.0 million notional amount of its convertible notes due on March 15, 2018 with a put option on March 15, 2016. The Company has approximately $26.1 million in convertible bonds outstanding. During the third quarter, the Company also repurchased approximately 807,000 American depositary shares (“ADSs”) following its announcement on September 23, 2015 of the authorization by its Board of Directors of a share repurchase program of up to US$20 million in aggregate value of its outstanding ADSs within the next 12 months.

“For more than a year now, we have maintained a coordinated strategy to shift into downstream projects and services while maintaining an intense focus on financial prudence and balance sheet improvement with a view toward the long-term sustainability of our business,” said Mr. Xianshou Li, ReneSola’s chief executive officer. “This approach has provided us new opportunities to capitalize on our global brand, network and industry expertise to develop and sell projects that generate cash flows to support our business growth and financing requirements.”

“During the third quarter, we recognized some of the fruits from our downstream strategy and substantially reduced our outstanding convertible bonds—a process we began in the fourth quarter of 2014—while kick-starting our $20 million share repurchase program. Despite our accomplishments, we believe the market continues to undervalue ReneSola’s growth prospects, the execution capabilities of our management team and our financial position. While executing on our current project portfolio, we have established a deep pipeline of valuable and high quality projects totaling more than 500 MW that we are developing and that provide us visibility into our cash flows for 2016 and beyond. Going forward, we will continue to build on our downstream strategy, actively manage our balance sheet and utilize our operating cash flows for the benefit of our long-term stakeholders,” added Mr. Li.

The Company might continue to repurchase its convertible bonds and American depositary shares from time to time, subject to market conditions and other strategic considerations. Such purchases will be made in accordance with the applicable laws and subject to any required regulatory approvals. (Original Source)

Shares of Renesola LTD closed yesterday at $0.97. SOL has a 1-year high of $3.10 and a 1-year low of $0.91. The stock’s 50-day moving average is $1.17 and its 200-day moving average is $1.42.

On the ratings front, Renesola has been the subject of a number of recent research reports. In a report issued on August 26, Roth Capital analyst Philip Shen reiterated a Hold rating on SOL, with a price target of $1.16, which implies an upside of 19.3% from current levels. Separately, on August 5, Cowen’s Jeff Osborne upgraded the stock to Buy .

According to, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Philip Shen and Jeff Osborne have a total average return of -17.2% and -14.3% respectively. Shen has a success rate of 20.0% and is ranked #3729 out of 3755 analysts, while Osborne has a success rate of 40.4% and is ranked #3646.

ReneSola Ltd is a manufacturer of solar wafers and producer of solar power products based in China, which are thin sheets of crystalline silicon material made by slicing monocrystalline or multicrystalline ingots.

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