Yingli Green Energy Shares Popped Again: 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 Yingli Green Energy (NYS: YGE) continued its wild ride again today (its third 10%-plus move in one week), jumping 14% at one point, following positive comments about the solar sector from Maxim Group analyst Aaron Chew.

So what: Mr. Chew forecast 30 gigawatts of demand for solar in China in 2012; but, despite his bullish forecast for the sector to improve upon severely depressed 2011 levels, he doesn't see a quick return to profitability. He also anticipates that pricing will stabilize even though there is still an oversupply of panels in Europe. Yingli was one of the few bright spots in Mr. Chew's note, in which he mentioned it as a long-term survivor along with Trina Solar (NYS: TSL) . He gave Yingli an edge because it owns its own polysilicon plant, and Trina got the nod because of its strong cash position.

Now what:  The push-pull nature of these analyst comments over the past week are almost getting comical. As I've been saying for the past few days, these comments are usually short-lived events and they shouldn't change your investment thesis on Yingli. I, once again, am not being lured in by today's pop and would rather see these companies turning a profit before I put any of my money to work in the solar sector.

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

At the time this article was published Fool contributorSean Williamshas no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen nameTMFUltraLong, track every pick he makes under the screen nameTrackUltraLong, and check him out on Twitter, where he goes by the handle@TMFUltraLong. Try any of our Foolish newsletter servicesfree 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 adisclosure policy.

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