Why China Ming Yang Wind Power's Shares Popped
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 China Ming Yang Wind Power Group jumped as much as 24% in early trading after announcing a big contract win.
So what: The company won 87 MW out of a total 100 MW tranche available from Southern Offshore Wind Power Joint Development Company in Guangdong Province, China. Construction of 29 3 MW super compact drive wind turbines will begin next month, and is expected to be completed next year.
Now what: There weren't any financial terms disclosed in the release, but it's safe to say that this is a significant win for a company that lost $48 million last year. Winning a big proportion of the total contract was also a positive, and may be a sign of a new partnership. I'd like to see a consistent profit instead of two quarters of losses before jumping in, so keep an eye on the financial impact of these large projects going forward.
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The article Why China Ming Yang Wind Power's Shares Popped originally appeared on Fool.com.
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