Zacks_Analysts' Blog : ReneSola Integrates Upstream - Analyst Blog

The 3,000MT polysilicon facility successfully commenced trial production from the first phase in mid-July. The second and equal phase is expected to reach mechanical completion in September 2009.

ReneSola is engaged in the manufacture and sale of solar wafers and related products. Initially, the company also used to sell solar modules. However, in April 2006, the company discontinued the sale of solar modules and concentrated on solar wafers instead. Even in solar wafers, the company moved from its initial focus on manufacturing monocrystalline to producing multicrystalline wafers in the third quarter of 2007.

ReneSola is expected to release its earnings on Aug 17, before markets open. The Zacks Consensus Estimate calls for a loss of 6 cents per share.

The solar space has been battered recently due to bearish markets and a lack of financing. Hopes of rejuvenation surfaced only last week with players like SunPower Corporation (SPWRA), which returned to profitability.

However, the picture will become clear when ReneSola's peers, such as JA Solar Holdings (JASO) and Pacific Ethanol (PEIX), release their numbers in mid-August.

We maintain our cautious HOLD rating on SOL.