Will ReneSola Ltd. Shares Rise to $5?

Does this analyst make a good case? Or is it just more noise from Wall Street?

Mar 25, 2014 at 10:11AM

While Fools should generally take the opinion of Wall Street with a grain of salt, it's not a bad idea to take a closer look at particularly stock-shaking upgrades and downgrades -- just in case their reasoning behind the call makes sense.

What: Shares of solar products company ReneSola (NYSE:SOL) climbed 4% in pre-market trading Tuesday after strong quarterly results prompted a upgrade from neutral to buy from Roth Capital.

So what: Along with the upgrade, analyst Philip Shen boosted his price target to $5 (from $3.80), representing about 30% worth of upside to yesterday's close. So while momentum traders might be turned off by the stock's sluggishness over the past several months, Shen's call could reflect a growing sense on Wall Street that ReneSola's prospects are now too cheap to pass up.

Now what: According to Roth, ReneSola's risk/reward trade-off is quite attractive at this point. "We believe the integration into poly differentiates SOL by allowing the company to preserve (and potentially even expand) GMs in an environment where spot poly pricing increases to $25/kg, which we now view as a realistic scenario," said Shen. "Additionally, we like SOL's differentiated OEM approach to capacity expansion as it requires less capex vs. in-house expansion and allows for a more nimble manufacturing approach given the fluctuating state of global tariffs." Of course, given ReneSola's still highly volatile and speculative nature, only the most risk-tolerant of investors should consider buying into that bullishness. 

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4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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