Yingli Green Energy Shares Dropped: 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 Chinese solar power specialist Yingli Green Energy (NYS: YGE) made investors see more red than green today, falling as much as 12.1% on middling trade volume.

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 (NYS: TSL) and Suntech Power (NYS: STP) losing 11%, but even American-as-apple-pie First Solar (NAS: FSLR) swooned as much as 9%.

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.

At the time this article was published Fool contributor Anders Bylund holds no position in any of the companies mentioned. The Motley Fool owns shares of First Solar. Motley Fool newsletter services have recommended buying shares of First Solar. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinion, but we all believe that considering a diverse range of insights makes us better investors. Check out Anders' holdings and bio, or follow him on Twitter and Google+. We have a disclosure policy.

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