Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of China Ming Yang Wind Power Group (NYSE: MY ) rose as much as 10.7% in early trading and remain up 2% as of this writing after announcing plans to withdraw a secondary offering.
So what: The company, which competes with the likes of Vestas Wind Systems (OTC BB: VWDRY.PK) to supply wind turbines to the Chinese market, had planned to raise capital by selling as many as 15 million American depository receipts. Executives now say they'll consider a share repurchase program.
Now what: Investors must've been overjoyed at the news. Extreme dilution out, return of capital in. Only in Vegas are such instantaneous reversals of fortune supposed to occur. In this sense, the news has a "too good to be true" air about it that's become all too common among Chinese small caps. Make sure to read Ming Yang's financial statements before you dive headfirst into this stock.
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