September 20, 2011
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 Suntech Power (NYSE: STP ) were down by double digits again today, setting a new 52-week low of $3 a share earlier in the trading session.
So what: The drop appears to be a continuation of yesterday's selloff in Chinese solar stocks, which in turn was prompted by news that peer JinkoSolar (NYSE: JKS ) faces a regulatory rebuke for polluting a nearby river and killing fish in the process.
Now what: Mix in a bad quarter for Suntech specifically and the industry generally, and you have a recipe for poor returns. Yet the underlying numbers still appear to be better than anyone thinks. Do you agree? Would you buy at current levels? Please weigh in using the comments box below.
Interested in more info on Suntech Power? Add it to your watchlist.