{"id":56117,"date":"2021-03-05T01:32:54","date_gmt":"2021-03-05T09:32:54","guid":{"rendered":"https:\/\/drduru.com\/onetwentytwo\/?p=56117"},"modified":"2021-03-05T01:33:28","modified_gmt":"2021-03-05T09:33:28","slug":"renesola-finally-broke-the-bank","status":"publish","type":"post","link":"https:\/\/drduru.com\/onetwentytwo\/2021\/03\/05\/renesola-finally-broke-the-bank\/","title":{"rendered":"ReneSola Finally Broke the Bank"},"content":{"rendered":"\n

ReneSola (SOL) is down 64.9% from its near 10-year high set in January. The company celebrated that high by announcing a secondary stock offering<\/a>…its fifth in 4 months. SOL came back stronger and better from the first four secondaries of the series. The fifth secondary stock offering finally broke the bank<\/a> (meaning ReneSola overwhelmed the capacity of investors to absorb the supply of new shares).<\/p>\n\n\n\n

\"\"\/
ReneSola (SOL) ended the day with a 12.1% loss as part of a larger 64.9% pullback from a near 10-year high.<\/em><\/strong><\/figcaption><\/figure><\/div>\n\n\n\n

The table below lists the results of each of the last 5 secondary stock offerings. I cannot recall a time ever seeing a company reach for the till this often and this frequently. The first secondary occurred while SOL was still trading in the low single digits: the stock traded below $1 just 4 months prior. SOL promptly lost 11.8% the next day but fully recovered in 9 trading days. SOL dropped in the wake of the next two secondaries only to recover in less time. The rebounds were so predictably strong that SOL actually rallied<\/strong> in the immediate wake of the fourth secondary: traders decided to get an early start on the rebound. ReneSola took the cue and less than three weeks later, the company went to the till again….and this time broke the bank with a massive $250M take.<\/p>\n\n\n\n

Date<\/strong> (links to the SEC filing)<\/td>Share Count<\/strong><\/td>Share Price<\/strong><\/td>Gross Value<\/strong><\/td>Stock Reaction next day<\/strong><\/td>Count of trading days to full recovery<\/strong><\/td><\/tr>
9\/23\/20<\/a><\/td>             2,500,000<\/td> $         2.00<\/td> $        5,000,000<\/td>-11.8%<\/td>9<\/td><\/tr>
10\/12\/20<\/a><\/td>             1,538,462<\/td> $         3.25<\/td> $        5,000,000<\/td>-18.3%<\/td>3<\/td><\/tr>
12\/23\/20<\/a><\/td>             2,105,000<\/td>\u00a0$\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 9.50<\/td> $      20,000,000<\/td>-19.2%<\/td>2<\/td><\/tr>
1\/7\/21<\/a><\/td>             2,500,000<\/td> $       16.00<\/td> $      40,000,000<\/td>7.0%<\/td>n\/a<\/td><\/tr>
1\/25\/21<\/a><\/td>           10,000,000<\/td> $       25.00<\/td> $    250,000,000<\/td>-21.9%<\/td>n\/a<\/td><\/tr><\/tbody><\/table>
The results of secondary stock offerings from Rensola (SOL) .<\/em><\/strong><\/figcaption><\/figure>\n\n\n\n