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 JinkoSolar Holding Co., Ltd. (NYSE: JKS ) fell as much as 11% today on a variety of negative news items.
So what: First, the U.S. Department of Commerce issued a new solar tariff that will add 26.89% to the cost of JinkoSolar's panels in the U.S., likely killing its market here. Then there was the report that SolarWorld has submitted evidence to European Union regulators that claims Chinese companies have been selling panels for below the negotiated minimum price to avoid tariffs on Chinese solar imports. JinkoSolar was specifically called out in the report.
Now what: If tariffs indeed hold up in the U.S. and the European Union finds that JinkoSolar violated the price minimum, it could be devastating for exports to two of the largest solar markets in the world. This saga is far from over, but this is a huge risk for Chinese solar stocks, which have been helped by Chinese state run banks, where the allegations of subsidies comes into play. I think Chinese solar stocks in general are too high a risk and would avoid buying in right now.
Invest in a domestic energy boom
You already know that U.S. energy production is on the rise but did you know that the IRS is encouraging investors to support our growing energy renaissance, offering you a tax loophole to invest in some of America's greatest energy companies. Take advantage of this profitable opportunity by grabbing your brand-new special report, "The IRS Is Daring You to Make This Investment Now!," and you'll learn about the simple strategy to take advantage of a little-known IRS rule. Don't miss out on advice that could help you cut taxes for decades to come. Click here to learn more.