Suntech Power Shares Plunged: What You Need to Know
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 Suntech Power (NYS: STP) fell more than 12% after a consortium of American solar-panel manufacturers filed a petition with the Commerce Department asking to put curbs on cheap imports. Several Chinese solar specialists fell in response, including Suntech and Yingli Green Energy (NYS: YGE) , among others.
So what: This isn't the first time Suntech has taken a beating. Twice last month the company saw its shares decline more than 10% on fears that an environmental rebuke of peer JinkoSolar (NYS: JKS) would affect Suntech as well.
Now what: So many unknowns, so much volatility. About the only thing we do know is that Suntech shares aren't falling because of earnings underperformance -- just the fear (justified or no) that said underperformance is inevitable. Do you agree? Would you buy shares of Suntech Power at current prices? Please weigh in using the comments box below.
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