Yingli Green Energy beaten down with many sticks this morning. Understandable after running from 18 last week to 25-plus yesterday. Now trading just below 23, but the rest of the solar sector is in the red. Options expiry could peg shares of YGE to 22.50, but the stock may not stay there for long.
The conference call, loaded with large numbers to the upside, revealed that 70% of polysilicon needs are secure, gross margin (Q4) increased 24%, and '08 gross margins will be close to '07 gross margins. Plus, polysilicon costs continue to be lowest in the industry, and taxes will decline in '08, as well.
Guidance is bullish, which means YGE will rally when the market reverses. Or will the market retest recent lows first? Still holding my YGE shares here.
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