ReneSola (NYSE:SOL) falls on good news, and when it finally reacts positively to incredible quarterly earnings, the stock starts selling off within an hour.
Want a more logical solar cell stock? Check out Suntech Holdings (NYSE:STP). Suntech is a Chinese solar cell company that just announced great second quarter earnings (see conference call transcript). They’re not as good as ReneSola’s, which nearly tripled its earnings for the quarter, but Suntech did see a 57.9% rise in profits year over year. And it beat analysts’ estimates by nearly 30%.
Even better, Suntech’s factories are contracted to capacity for the production of solar cells through the rest of 2008, and possibly all of 2009 (The company isn’t saying, "yes" or "no" to that one, but it has hinted that it’s not seeing any problems getting customers for the next year and a half.).
STP was up 12% on the news.