Sometimes stocks are like the weather -- they can change in an instant. Just ask ReneSola ( SOL - Get Report). In announcing its mixed earnings report this morning -- highlighted by slumping revenues and declining inventory values -- the share price went into a downward talespin. But it quickly recovered by midday, shooting into positive territory up 7.3%, or $3.97, only to fall back into the red in after hours.

Based in China, the company manufacturers wafers for solar panels.

The company saw a loss of 22 cents per share, but it also posted a $68 million inventory writedown as a result of a huge drop in the price for raw materials used in their wafers. Average selling price for the wafers was cut nearly in half, from $2.16 per watt in the previous quarter to $1.27 in the first. Excluding the write-down brought EPS to 2 cents based on $2.1 million in net income. It was a solid showing that finished just ahead of analysts' 1-cent projection.

Because of the falling prices and slowing shipments, though, revenues fell to $106.9 million, a 13% decrease from first quarter 2008 and a 32.6% hit from the previous quarter. Analysts projected the company to get to $113 million. Also, in a downstream integration ploy, the company announced the acquisition of JC Solar, a solar cell and module maker.

"As production costs continue to decline, the PV industry is becoming increasingly competitive," CEO Xianshou Li said in a release. "We continue to believe that there will be a recovery in global demand as the year progresses and we remain confident in the long-term prospects of the solar industry."

Maybe so, but the company still gave an underwhelming outlook, saying full-year revenue is likely to fall between $500 million to $550 million. That's below the street projection of $585 million.

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