Nevertheless, the main problem for ReneSola is that it still hasn’t managed even to get gross profit margins above zero. JA Solar Holdings Co., Ltd. (ADR) (NASDAQ:JASO) has been in the same boat recently, with the costs of making its products exceeding its sales even before considering operating expenses and other costs of doing business. Unless ReneSola can get its margins up, then it won’t be able to compete against much better performing U.S. rivals that have seen their prospects soar lately.
In ReneSola’s quarterly report, watch for any signs that the company is getting its revenue up and its costs down. A failure to do so in the near future could endanger the company’s survival in the not-too-distant future.
The article Will ReneSola Survive the Shakeout in Solar? originally appeared on Fool.com and is written by Dan Caplinger.
Motley Fool contributor Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter @DanCaplinger. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.