Solar Power, Inc. (OTCMKTS:SOPW) Regaining Some Lost Value
[[tagnumber 0]][[tagnumber 1]]Solar Power, Inc. (OTCMKTS:SOPW) has been climbing the charts for months now, gaining nearly 1000% since the start of July. The company is regularly issuing optimistic press releases and the investors are thrilled in the opportunity it is providing them.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]More recently, however, things turned bad and the company experienced several sessions in the red. After the steady climb we saw since the beginning of the month [[tagnumber 6]]SOPW [[tagnumber 7]]began to drop as this week of trading started, losing 10% of its value in Monday’s session on quite the volume.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]Tuesday went a little slower, but the ticker still recorded $1.9 million in daily dollar volume while dropping a mere 0.79% in price and remaining above the $2 per share mark at $2.50. Wednesday, however, went way different.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]On Wednesday [[tagnumber 6]]SOPW [[tagnumber 7]]experienced one of the most intense sessions recently as it slashed away a serious 33.60% of its value crashing down to $1.66 at the final bell, while a massive 1.73 million shares generated $3.5 million in dollar volume, despite seemingly positive news.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]As we mentioned in our previous articles, [[tagnumber 6]]SOPW [[tagnumber 7]]most recently announced that it has entered into a framework agreement for the acquisition of 100% of [[tagnumber 6]]Shanghai All–Zip Roofing System Group Co., Ltd.[[tagnumber 7]] for roughly 330 million yuan, or $54 million.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]Unfortunately, whole of the payment will be made by issuance of shares at a price of $2.38 per share. After a simple calculation you will see that this will increase the outstanding shares of [[tagnumber 6]]SOPW [[tagnumber 7]]by around [[tagnumber 6]]22.68 million[[tagnumber 7]] causing further dilution.[[tagnumber 2]] [[tagnumber 0]][[tagnumber 36]][[tagnumber 37]][[tagnumber 2]] [[tagnumber 0]]Still, the ticker has been trying to recover and recorded an 11.45% gain during yesterday’s session, closing at $1.85. The total amount of shares that was traded was large once again and the 1.36 million that changed their owners generated $2.33 million in daily dollar volume.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]Today’s session has also started rather well and as of the writing of this article [[tagnumber 6]]SOPW [[tagnumber 7]]is sitting 18.38% higher at $2.19, having crossed above the $2 mark once again. That, however, doesn’t mean that you shouldn’t always do your due diligence and weigh out the risks before making an investment decision.[[tagnumber 2]]