NEW YORK (TheStreet) -- Shares of ReneSola Ltd. (SOL) were down 5.93% to $3.17 in trading Thursday. The drop comes after the Chinese solar wafer producer revealed that the U.S. Department of Commerce was investing the company for dumping.
"This investigation may result in certain retroactive tariffs being applied on products shipped to the United States within the investigation scope, including modules with Chinese and Taiwanese cell elements, if the Department finds sharply increased Chinese shipments to the United States from March to the preliminary ruling date," said Xianshou Li, ReneSola CEO. "In the interests of our clients and investors, we are temporarily reducing our U.S. product shipments in question."
"The company intends to fully cooperate with the investigation proceedings and to pursue the best outcome for ReneSola, as well as the industry," ReneSola said in a statement. A preliminary ruling in the investigation is expected in June.
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TheStreet Ratings team rates RENESOLA LTD as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate RENESOLA LTD (SOL) a SELL. This is driven by a few notable weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally high debt management risk, disappointing return on equity, poor profit margins and feeble growth in its earnings per share."