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For the last four months the stock of Solar Power, Inc. (OTCMKTS:SOPW<\/a>) has been on fire. At the start of July it was hovering around 25 cents per share while on October 24 it posted its current 52-week high of $2.95. Although it suffered a couple of sizable corrections the company managed to recover some of its losses and as of Friday it is trading at $2.25.<\/p>\n SOPW<\/a>’s <\/strong>activity on the business front mirrors the incredible ascent of its stock. They have been issuing a constant torrent of PR articles announcing new projects, acquisitions and agreements. On October 29 they announced the latest acquisition – Shanghai All-Zip Roofing System Group Co., Ltd. In order to pay the necessary sum of around $54 million Solar Power<\/strong> will use its common shares valued at $2.38 each and this leads us to the major red flag around the company.<\/p>\n If you have been following our articles you would by now know that SOPW<\/a> <\/strong>have been putting their shareholders through a considerable amount of dilution. We warned you that earlier this year they issued 136 million shares at just $0.16 followed by another 92 million priced at $0.27. So far the company has also closed two previously announced private placements – on October 21 they completed a $43.8 million placement while just three days ago they announced the completion of a $48.25 million one. Although the shares sold under these placements were valued at $1.17 and $1.38, respectively, they are still nowhere near the current market price.<\/p>\n Investors should also consider the fact that as of August 19 42% of SOPW<\/a> <\/strong>was owned by LDK Solar Co., Ltd., a company that last month filed for bankruptcy.<\/p>\n Currently Solar Power<\/strong> commands a market of more than $750 million, which may be a bit too much considering their financial results at the end of June. The quarterly report covering the period contained:<\/p>\n • $5.85 million cash
• $17.24 million current assets
• $44.09 million current liabilities
• $9.94 million revenues
• $2.17 million net loss<\/p>\n