The ReneSola Ltd (NYSE: SOL) stock has been in the middle of a rollicking rally over the past two weeks and it is highly likely that the stock is going to be on the radars of many investors over the coming days.
Over the course of those two weeks, the stock has rallied by as high as 60%. To put it into perspective, up until March 1, the stock hit a high of $33.5 a share from only $4 a share in a space of only 3 months. While the rally is noticeable it is also important to note that due to an accumulation of deficit, as much as four-fifths of ReneSola’s $547 worth of common stock has been eroded.
When compared to the company’s equity capital, ReneSola’s profits, as well as revenues, are quite insignificant and that is something that investors could keep in mind when evaluating the stock. Last but not the least, the competition in solar space has also intensified considerably.