Suntech Power Shares Plunged: What You Need to Know

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  ) fell more than 12% after a consortium of American solar-panel manufacturers filed a petition with the Commerce Department asking to put curbs on cheap imports. Several Chinese solar specialists fell in response, including Suntech and Yingli Green Energy (NYSE: YGE  ) , among others.

So what: This isn't the first time Suntech has taken a beating. Twice last month the company saw its shares decline more than 10% on fears that an environmental rebuke of peer JinkoSolar (NYSE: JKS  ) would affect Suntech as well.

Now what: So many unknowns, so much volatility. About the only thing we do know is that Suntech shares aren't falling because of earnings underperformance -- just the fear (justified or no) that said underperformance is inevitable. Do you agree? Would you buy shares of Suntech Power at current prices? Please weigh in using the comments box below.

Interested in more information about Suntech Power? Add it to your watchlist.

Fool contributor Tim Beyers is a member of the Motley Fool Rule Breakers stock-picking team. He didn't own shares in any of the companies mentioned at the time of publication. Check out Tim's portfolio holdings and Foolish writings, or connect with him on Google+ or Twitter, where he goes by @milehighfool. You can also get his insights delivered directly to your RSS reader.

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Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On October 31, 2011, at 11:27 PM, fuzzywzhe wrote:

    What a load of crap.

    If you just look at the charts, of various solar Chinese solar companies, for example: GTAT, DQ, JKS, SOL, TSL, LDK, JASO, YGE, STP you can see they've ALL been crushed, months ago.

    And they all have VERY STRONG EARNINGS.

    Nothing happened today that was unusual, that's just a complete lie. Look at the charts of all those. It's nothing to do with tariffs, and everything to do with a corrupt financial system, and an SEC that looks the other way when it comes to naked shorting and god knows what else.

    It's just pure, unadulterated, corruption of our financial system. We have criminals all over and in our financial system, and no regulatory agencies are doing their job. They're all paid to look the other way.

    It's that simple.

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