Aug 19, 2021 (WallStreetPR via Comtex) -- The solar energy industry continues to represent one of the most promising long-term investment opportunities according to many analysts as capital flows into funds dedicated to allocating toward sustainable energy solutions.
However, many of the stocks in the space have become crowded over the past couple years, especially in the run up to the Biden presidency last fall, with fund managers assuming a major shift in policy to aid in the expansion of the solar space.
That has left many potentially interesting opportunities behind as everyone chases the top group, with retail investors augmenting that momentum for a select few players.
For investors looking for a speculative opportunity, this is an interesting spot to look. Undervalued and underappreciated solar names may be overlooked gems with real prospects, especially as trillions flow into the industry from government and ESG funds.
That could imply some interesting things ahead for stocks like ReneSola Ltd. /zigman2/quotes/208672473/composite SOL +1.79% , Maxeon Solar Technologies Ltd /zigman2/quotes/220015328/composite MAXN +1.39% , Green Stream Holdings Inc /zigman2/quotes/202347924/delayed GSFI -36.36% , Sunworks Inc /zigman2/quotes/208800639/composite SUNW -5.47% , Ascent Solar Technologies, Inc. /zigman2/quotes/208952191/composite ASTI -0.45% , and Sunnova Energy International Inc /zigman2/quotes/213414922/composite NOVA -0.58% .
ReneSola Ltd. /zigman2/quotes/208672473/composite SOL +1.79% engages in the manufacture of solar wafers and modules. It operates through the following segments: Wafer, Cell and Module, and Solar Power Projects.
The Wafer segment includes manufacture and sales of monocrystalline and multicrystalline solar wafers and processing services. The Cell and Module segment involves in the manufacture and sale of PV cells and modules. The Solar Power Projects segment offers solar power project development, EPC services, and electricity.
ReneSola Ltd. /zigman2/quotes/208672473/composite SOL +1.79% recently announced the signing of a strategic partnership agreement with Emeren, a London, United Kingdom-based project developer specialized in the development of renewable energy power plants in Europe and other international markets, to co-develop ground-mounted solar projects in Italy, with a pipeline of several transactions scheduled for 2021. As part of the agreement, ReneSola Power and Emeren will develop projects in a broad range of sizes across the country, with a target of reaching 110 MW shovel-ready projects by 2022. The two companies expect the collaboration to further strengthen their presence in the Italian market.
Mr. Josef Kastner, CEO of ReneSola Power European Region, commented, "We are excited to work together with Emeren. ReneSola Power is committed to accelerating solar development in Europe, and together with Emeren, we expect to bring a range of high-quality projects to the Italian market, enabling further growth in the region."
Even in light of this news, SOL has had a rough past week of trading action, with shares sinking something like -15% in that time. That said, chart support is nearby, and we may be in the process of constructing a nice setup for some movement back the other way. Over the past month, shares of the stock have suffered from clear selling pressure, dropping by roughly -16%.
ReneSola Ltd. /zigman2/quotes/208672473/composite SOL +1.79% managed to rope in revenues totaling $22.8M in overall sales during the company's most recently reported quarterly financial data - a figure that represents a rate of top line growth of 7.6%, as compared to year-ago data in comparable terms. In addition, the company has a strong balance sheet, with cash levels exceeding current liabilities ($301M against $51.1M).
Green Stream Holdings Inc /zigman2/quotes/202347924/delayed GSFI -36.36% is a unique player in the space, given its focus on community solar energy systems and rooftop solar powered greenhouses that stand to maximize systemic efficiency from many angles.
This is a potentially ideal solution to urban waste - which includes space, water, energy, and air. If there's one thing the ESG crowd can get behind, it's sustainability. And waste is the enemy of sustainability. Smart solutions that eliminated wasted energy, water, space, and air seem right up the ESG alley.
Green Stream Holdings Inc /zigman2/quotes/202347924/delayed GSFI -36.36% announced last monththat it is launching its plan on using the solar green houses to create micro grids in urban areas. In fact, it has already made big progress in this direction with surveys underway at specific sites.
CEO James DiPrima stated: "We are targeting high energy cost urban areas we overlay our footprint on another potentially wasted resource hiding in plain sight in cities across the nation: empty rooftops, overpasses, and canopies.Our Solar Greenhouses take under-utilized space and turns them into sustainable inner city farms, harnessing collected solar energy and runoff water to become an oasis for healthy produce.
The stock has been moving under the radar and hasn't gotten much attention, which is so often the case for OTC names. But it has tangible catalysts moving forward and may be worth a look, especially if the tape starts to show signs of accumulation.