Chinese solar wafer manufacturer ReneSola (SOL) today announced that its Board has authorized a $100m share repurchase program, stating the stock is undervalued. This follows a similar announcement by JA Solar on August18th regarding its own $100m share repurchase program.
ReneSola’s shares were down 66% this year as of Friday’s close. Emphasizing the company’s belief that the stock is undervalued, Mr. Xianshou Li, ReneSola’s chief executive officer and director, made the following statement:
“At present, we believe our shares are undervalued. Despite relatively weak capital markets and a challenging solar market, we are confident in the long-term prospects of our business and the industry as a whole. With a healthy cash position, we believe the share repurchase program will generate value for our shareholders while we leverage our new Virtus wafer technology, our increasing in-house polysilicon production and our strong leadership position in wafer production to capitalize on new opportunities.”
You can ready the full press statement here. In a further sign that the Board thinks that the company’s stock price is significantly undervalued they also adopted a shareholder rights program which triggers if a person or group acquires 15% or more of the company’s stock with voting rights.
Disclosure: I have no position in SOL. I am long JASO.
