YGE Been On The Move Lately As The Stock Has Risen By 35.54% In The Past Four Weeks, And It Is Currently Trading Well Above Its 20-Day SMA. This Is A Pretty Solid Move Higher!! [Edit orDelete]0 comments
Oct 6, 2013 2:53 AM | about stocks: YGEMore business in China sounds great, except it is also a market prone to price wars. That the second-quarter gross margin stayed firm was a sigh of relief for the analysts:The fact that gross margin on module sales rose 750 bps sequentially while China sales near tripled suggests that China sale will not weigh on margins as some have feared. [Barron's: i.e. China solar industry is not in the mood for a price war.] We note that our checks show module ASPs up ~10% in China YTD.The solar industry is showing clear signs that the supply vs. demand balance is improving, and we expect YGE's gross margin to rise in the quarters ahead.Japan was also a bright spot to firm up Yingli's sales:While not broken out specifically, sales to Japan rose sharply in YGE's "Rest of World" grouping, and the company suggests that Japan could rise to account for 13-15% of revenue in 2H13, a doubling from the 6-7% in 2Q13. Growth in China and Japan will help to offset the decline expected in European shipments in 4Q13; a decline brought on by the EU-China agreement of a shipment quota.So far so good.But looking down the income statement, operating margin (-3.8%) has not improved as much as the analysts had hoped for:With operating expenses growing 22% sequentially on a 23% increase in shipments suggest that the company is having a difficult time getting the extra revenue to fall through to the operating income line.As a result, the bottom-line earnings per share was still in the red and Maxim Group does not expect Yingli Energy to be out of the deep, dark woods in 2014.Yingli has too much debt. The company had to make $36 million interest payments on a $65 million gross profit.The so-called tier-one Chinese solar coYingli Green Energy Hold. Co. Ltd. (ADR)(NYSE:YGE) stock is at $7.11, up +2.45 percent from its previous close of $0.075. The stock opened the session at $0.075 and touched its highest price point at $0.077.Stocks graphical chart shows a bullish trend during its last one month's trading session. It remained positive with +116.77% during previous three months trade. Its recent trading volume was 10.31 million shares in comparison to its usual trading volume of 7.08 million shares. Yingli Green Energy Holding Company Limited is a vertically integrated photovoltaic (PV), product manufacturer worldwide.Can the Rally in Yingli Green Energy Hold. Co. Ltd. (YGE) SYingli Green Energy Hold. Co. Ltd. (YGE) been on the move lately as the stock has risen by 35.54% in the past four weeks, and it is currently trading well above its 20-Day SMA. This is a pretty solid move higher, but the question that has to be on investors' minds right now is; can this trend continue?While there can be no telling for sure, it is certainly encouraging that earnings estimates have risen in the past few weeks on the company, suggesting that sentiment on YGE is moving in the right direction. In fact, the stock currently has a Zacks Rank #2 (Buy), suggesting that the recent run could certainly continue for this in-focus company.As you can see on the chart below from incestorwand.com , you can see that my target is $12 dollars over the year. China is putting more dough is this bad boy than you and I will ever know, but rest assure, just to let you know I have been following this bad boy about 4 years, so I know the ins and outs of its techinal pattern, and trust me when I tell , to this blogpost short,if I were you I would be picking up this stock hand over fist. We are about to see a breakout gentlemen, get in while can!! Have fun, take chances , and make money!Disclosure: I am long YGE.Additional disclosure:www.investorwand.com/recommendations/vie...www.investorwand.com/recommendations/vie.../9152
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