Why China Ming Yang Wind's Shares Dropped
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 fell as much as 13% in early trading today after the company reported earnings.
So what: Second quarter revenue dropped 33%, to $87.6 million, and total comprehensive loss was up 160%, to $11.3 million. On a per-share basis, the company lost $0.08.
Now what: Management said it won 396 MW of new orders in the quarter versus shipments of just 161 MW, and expects market share in China to grow. I just don't see any positive trends with this company, or any other company in the wind business, and a growing loss isn't a reason to jump into shares today. I wouldn't be a buyer until it can show a consistent profit, which I don't see any time soon.
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The article Why China Ming Yang Wind's Shares Dropped originally appeared on Fool.com.Fool contributor Travis Hoium has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not 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.
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