Why Yingli Green Energy Hold. Co. Ltd. Shares Popped Today

Is Yingli Green Energy's jump meaningful? Or just another movement?

May 21, 2014 at 4:19PM

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 Yingli Green Energy Hold. Co. Ltd. (NYSE:YGE) jumped more than 12% Wednesday after the Chinese solar specialist announced trial production of a new technology.

So what: Yingli Green Energy today announced that, with the help of equipment provided by Formula E s.r.l. and installed in one of its module workshops, it has begun trial production of monocrystalline silicon modules with N-type Metal-Wrap-Through, or "N-MWT," technology. Formula E designed and produced the manufacturing equipment as part of the two companies' strategic collaboration agreement.

Yingli states N-MWT technology "reduces power loss in the module encapsulation process and improves cell efficiency by reducing the amount of metal applied to each solar cell, which exposes more of the solar cell's surface area to sunlight than with traditional monocrystalline technologies."

Now what: Remember this is still in a pilot production line, so N-MWT shouldn't be considered a near-term catalyst to drive Yingli's top and bottom lines. Down the road, however, this new tech could effectively differentiate Yingli's offerings from increasingly steep competition in the solar space. 

Separately, Yingli shares are also likely benefiting from a broader climb in solar stocks resulting from Trina Solar's stellar first-quarter earnings today. Yingli, for its part, hasn't scheduled its own first-quarter release, but should be set to report within the next few weeks.

For now, I still prefer avoiding the practice of trading around earnings, so don't mind waiting until Yingli's report to make a more informed decision. But last quarter, management did say they expect to hit "breakeven through the end of Q2 and start to make a profit from early Q3." If Yingli shows adequate progress toward that goal, shares could certainly rise more from here.

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4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

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David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.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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