Yingli Green Energy Shares Plunged Temporarily: 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 photovoltaic products manufacturer Yingli Green Energy (NYS: YGE) are whipsawing wildly for a second day in a row following an analyst downgrade. Shares dropped 10% earlier in the trading session but have rallied to be down only 3% at the moment.

So what: Following yesterday's positive comments from Deutsche Bank analyst Vishal Shah that rallied the entire solar suppliers sector, it's not surprising to see Yingli giving back some of its gains. Then again, Lazard Capital downgrading the stock to neutral from a buy is definitely playing a part in today's drop.

Now what: Analyst upgrades and downgrades are great if you happen to be on the right side of the trade, but they are almost always short-term movements that we can ignore. Today's downgrade shouldn't change your investing thesis on Yingli, and it definitely hasn't changed my opinion that investors would be better off waiting out the solar sector's woes on the sidelines.

Craving more input? Start by adding Yingli Green Energy to your free and personalized watchlist so you can keep up on the latest news with the company.

At the time thisarticle was published Fool contributor Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong. 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.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.