Why China Ming Yang Wind Power's Shares Jumped
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 wind turbine maker China Ming Yang Wind Power Group jumped as much as 17% after reporting earnings.
So what: Total revenue in the first quarter was up 98% to $129.7 million, and comprehensive income was $3.8 million, or $0.03 per share. This result is a swing back to profit for the company, and it looks like demand is picking up quickly this year.
Now what: Management is seeing a strong recovery in China, and with an 8.7% market share in 2012, it's poised to take advantage of the growth. The company is also seeing greater demand for 2.0 MW systems, versus the 1.5 MW turbines that sold in the past. The wind business can be very volatile, and while this quarter's profit is good, I won't be buying into the stock, given the up-and-down nature of earnings.
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The article Why China Ming Yang Wind Power's Shares Jumped originally appeared on Fool.com.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.