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.
So what: The China Development Bank is giving Yingli Green Energy a $110 million one-year loan and a $55 million three-year loan to use for working capital and raw material needs. This adds to $2.5 billion of debt already on the balance sheet and doesn't bring the company any closer to profitability.
Now what: Chinese state-run banks are now in position to pick winners and losers in the solar industry. The reason Yingli and Trina jumped today is that investors are speculating that they'll be able to outlast others in the industry. I'm still not buying this pop, because both companies are losing money, and adding more debt doesn't help their problems.
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Fool contributor Travis Hoium 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.