Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of solar manufacturer ReneSola (NYSE: SOL ) climbed 10% today after announcing a deal with Thailand-based solar and wind farm developer Energy Absolute.
So what: The stock has rebounded awesomely over the past few months on better-than-expected shipments, and today's deal -- ReneSola will provide 63MW of its Virtus II modules to Energy Absolute between August and October -- only reinforces that trend. The contract win also suggests that ReneSola's modules are rather well suited for the high temperatures and tropical conditions of Southeast Asia, giving investors plenty of good vibes over its growth potential going forward.
Now what: I'd expect demand to stay healthy over the short term. "We have been a leading provider of PV products in Southeast Asia since last year," said ReneSola CEO Xianshou Li. "As we look ahead, we hope to generate additional business in the emerging solar markets of Southeast Asia." Of course, given that ReneSola's profitability remains a huge question mark even amid higher sales, only the least risk-averse of Fools should even consider buying into those prospects.
There are many different ways to play the energy sector, and The Motley Fool's analysts have uncovered an under-the-radar company that's dominating its industry. This company is a leading provider of equipment and components used in drilling and production operations and is poised to profit in a big way from it. To get the name and detailed analysis of this company that will prosper for years to come, check out the special free report: "The Only Energy Stock You'll Ever Need." Don't miss out on this limited-time offer and your opportunity to discover this company before the market does. Click here to access your report -- it's totally free.