Why China Ming Yang Wind Power Group Ltd'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 China Ming Yang Wind Power Group Ltd dropped 13% today after the company released earnings.
So what: Third-quarter revenue rose 22%, to $157.0 million, and the company lost $11.7 million, or $0.07 per share. Deliveries amounted to 290 MW, and orders taken in the quarter were 296 MW, meaning that growth will be harder to come by in the future.
Now what: At the end of the day, it doesn't look like growth is going to pick up significantly, and China Ming Yang Wind Power Group still isn't making a profit. It's also discouraging to see gross margin fall from 17.4% a year ago, to 13.2% last quarter. I'm definitely not buying this stock here, and don't know if the company will be able to swing to a profit any time soon.
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The article Why China Ming Yang Wind Power Group Ltd'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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