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.
So what: Management priced its direct offering of approximately $70 million in American Depositary Shares (ADS) -- each representing two shares of the company -- at a price of $4.67 per ADS, which is about 15% below yesterday's close of $5.49. Given that wide of a discount, as well as the size of the offering, investors are obviously concerned about the sale's dilutive potential.
Now what: The offering, which will also give investors 35% warrant coverage, with an initial exercise price of $6.04 per ADS, is expected to close on September 16. But, while some of the short-term financing risk has been lifted, the below-market sale serves as yet another reminder of ReneSola's precarious financial position. When you couple the company's ongoing losses with its still-hefty debt load, the stock is probably best left to more speculative types to play with.
Think the days of $100 oil are gone? Think again. In fact, the market is heading in that direction now. But, for investors who are positioned to profit from the return of $100 oil, it can't come soon enough. To help investors get rich off of rising oil prices, our top analysts prepared a free report that reveals three stocks that are bound to soar as oil prices climb higher. To discover the identities of these stocks instantly, access your free report by clicking here now.