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 Chinese solar power specialist Yingli Green Energy
So what: A consortium of seven American solar power panel makers just filed a petition with the U.S. Department of Commerce, crying foul over Chinese rivals flooding our market with impossibly cheap panels. Fearing government intervention, investors have dumped Chinese solar stocks in general with Trina Solar
Now what: OK, First Solar's slip came from an analyst downgrade and not directly from the Chinese complaint, but all of these actions come together to underscore just how volatile the solar market is.
Many of these stocks are running close to 52-week lows right now, and Yingli was worth three times more as recently as June. Alleged price wars and international politics aside, nearly every stock in the solar sector is ridiculously affordable today, and buying on these dips makes a ton of sense. Just be prepared for one heck of a thrill ride, and try not to panic-sell to lock in paper losses along the way.
Interested in more info about Yingli Green Energy? Click here to add it to My Watchlist.