Why Yingli Green Energy, Castlight Health, and Fortuna Silver Mines Tumbled Today

Stocks climbed Tuesday on continuing optimism about geopolitical and global economic events, but these three stocks fell sharply despite the positive mood on Wall Street. Find out why here.

Mar 18, 2014 at 8:30PM
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Stocks continued their rebound Tuesday, adding to their gains from Monday in response to having avoided worst-case scenarios over the weekend in the current hotspot of Crimea. Yet even as investors look forward to tomorrow's announcement from the Federal Reserve on its plans for future tapering of quantitative easing, some stocks didn't keep up with the broader market. Yingli Green Energy (NYSE:YGE), Castlight Health (NYSE:CSLT), and Fortuna Silver Mines (NYSE:FSM) all posted sharp declines in Tuesday.

Yingli fell 9% after its earnings report left investors wanting. Even as the Chinese solar company saw huge growth in module-shipment volumes help boost revenue by 28%, Yingli said that it didn't expect to become profitable until the third quarter, which was later than previous guidance. Moreover, investors weren't satisfied with guidance for more than 30% growth in module shipments for 2014, with even 4 to 4.2 gigawatts proving insufficient to convince shareholders that Yingli will survive the Chinese solar shakeout. Falling costs and project opportunities should help, but with so much competition from companies like ReneSola (NYSE:SOL), which soared almost 8% today, Yingli needs to keep executing well in order to get back on its feet.

Castlight Health dropped almost 10% as the newly public cloud-based health-care management software provider came down to earth after its IPO last Friday. The company soared almost 150% on its opening day, but since then, cooling sentiment has sent the stock down by 15%. Even with the declines, Castlight has more than doubled from its $16 offering price, and with the appeal of cloud computing and the timeliness of helping companies control health-care costs, Castlight has plenty of future potential.

Fortuna Silver lost 5.5% Tuesday, bringing its two-day total decline to 19% after the company released its fourth-quarter earnings report. Operating results at Fortuna's San Jose Mine in Mexico soared, with silver production up more than 85% and gold production rising by two-thirds by weight. Yet falling bullion prices ate into the positive impact of greater production on net dollar revenue, and Fortuna also had to take impairment charges due to falling prices as well as to reflect the impact of new mining taxes in Mexico. Silver's drop today didn't help Fortuna, but in order for the company to rebound, it will have to hope for improving silver prices to continue throughout 2014.

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Dan Caplinger and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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