Why China Ming Yang Wind's Shares Dropped

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 wind turbine maker China Ming Yang Wind Power Group (NYSE: MY  ) fell as much as 13% in early trading today after the company reported earnings.

So what: Second quarter revenue dropped 33%, to $87.6 million, and total comprehensive loss was up 160%, to $11.3 million. On a per-share basis, the company lost $0.08. 

Now what: Management said it won 396 MW of new orders in the quarter versus shipments of just 161 MW, and expects market share in China to grow. I just don't see any positive trends with this company, or any other company in the wind business, and a growing loss isn't a reason to jump into shares today. I wouldn't be a buyer until it can show a consistent profit, which I don't see any time soon.

Interested in more info on China Ming Yang Wind Power? Add it to your watchlist by clicking here.

Read/Post Comments (1) | Recommend This Article (1)

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 August 30, 2013, at 9:58 AM, rabejatis wrote:

    What' the problem of this author?

    Stocks form Companies in the wind business are the successfully stocks this year!

    Nordex - 200 % plus this year

    Gamesa - 200 % plus this year

    Vestas - over 200 % plus this year.

    Nordex and Gamesa back to profits. But Vestas with 10% net loss rate.

    Ming Yang with 3,5 % net loss in the half year or only a third from 2012.

    Very high book-to-bild rate in Q2 from 2,5.

    Three times mor revenues on the way.

    2011 6,7 % market share - in the first half year 10,2 % from new orders!

    Lover trade receivables and lover debts.

    Miny Yang notice only at on third of the real value. The peer-group like Vestas notice over double!

    The Ming Yang share is a strongest buy!

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2616219, ~/Articles/ArticleHandler.aspx, 5/30/2015 10:48:26 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...