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) jumped as much as 24% in early trading after announcing a big contract win.
So what: The company won 87 MW out of a total 100 MW tranche available from Southern Offshore Wind Power Joint Development Company in Guangdong Province, China. Construction of 29 3 MW super compact drive wind turbines will begin next month, and is expected to be completed next year.
Now what: There weren't any financial terms disclosed in the release, but it's safe to say that this is a significant win for a company that lost $48 million last year. Winning a big proportion of the total contract was also a positive, and may be a sign of a new partnership. I'd like to see a consistent profit instead of two quarters of losses before jumping in, so keep an eye on the financial impact of these large projects going forward.
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