Georgi Kamburov

Solar Power, Inc. (OTCMKTS:SOPW) Finish The Week On Record Volume

by Georgi Kamburov October 7, 2013
SOPWchart.pngJust before the weekend the stock of Solar Power, Inc. (OTCMKTS:SOPW, SOPW message board) received an unexpected boost and surged by more than 33% to arrive at $0.25 per share. In early trading everything seemed normal but in the afternoon traders went into a frenzy and shifted around 3.5 million shares in just a couple of hours. In comparison the previous Friday session saw only 2176 shares being traded.

As it name shows SOPW is a photovoltaic solar developer and 71% of its stock is owned by LDK Solar Co., Ltd. The company has fallen on hard times and even the NYSE-listed LDK has suffered some setback as the whole green energy industry was beset by difficulties. Even after the recent climb SOPW is still more than 60% down from its pps from early 2012. For the second quarter of 2013 they posted the following financial results:

  • $172 thousand cash
  • $75 million total current assets
  • $105 million total current liabilities
  • $4.1 million revenues
  • $6.8 million net loss

Although on their own the numbers aren't that bad for a pennystock company comparing them with last year's results truly shows how bad the situation really is. Revenues are down by 88% form $24 million, working capital has shifted from positive $60 million at December 2011 to negative $30 million. They are in a dire need for fresh funds but have almost used all of their 250 million authorized common shares with 198 million outstanding.

SOPW also owe the substantial sum of $47.6 million to their parent company but for now LDK have decided to not demand repayment. That however may not be the case with Cathay Bank. SOPW were supposed to repay the $7 million loan by September 30.

Last week the whole industry finally got a breath of fresh air when China announced a tax break for solar products and more specifically a 50% refund on value-added taxes. The use of caution and doing your own due diligence is as necessary as ever PCWTchart1.pngif you are contemplating investing in a green energy company.

The latest Awesome Penny Stocks pick - Pacific Clean Water Technologies, Inc. f/k/a Unseen Solar, Inc. (OTCMKTS:PCWT) finally managed to move upwards after 4 days of losses. They added 12% and are currently trading for $0.24. On the other hand shareholders of Swingplane Ventures, Inc. (OTCBB:SWVI) had little to be happy about when the stock crashed by 39% and returned to 4 cent per share.

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