charles graham vanilla spilla seekingalpha john thomas report - yge -buy recommendation

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Page 1: Charles graham vanilla spilla seekingalpha john thomas report - yge -buy recommendation

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Title:YGE Been On The Move Lately As The Stock Has Risen By 35.54% In The Past Four Weeks, And It IsCurrently Trading Well Above Its 20-Day SMA. This Is A Pretty Solid Move Higher!!Edit

Focus ticker:

Ticker SymbolYGE, Edit

Theme tags:yge, china solar stocks, yge bullishEdit

Disclosure:I am long YGE.

Additional disclosure: http://www.investorwand.com/recommendations/viewcompany/5220http://www.investorwand.com/recommendations/viewanalyst/9152

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YGE Been On The Move Lately As The Stock

Has Risen By 35.54% In The Past Four Weeks,

And It Is Currently Trading Well Above Its 20-

Day SMA. This Is A Pretty Solid Move

Higher!! [Edit or Delete]0 comments

Oct 6, 2013 2:53 AM | about stocks: YGE

More business in China sounds great,

Page 2: Charles graham vanilla spilla seekingalpha john thomas report - yge -buy recommendation

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More business in China sounds great,except it is also a market prone to pricewars. That the second-quarter gross marginstayed firm was a sigh of relief for theanalysts:

The fact that gross margin on module salesrose 750 bps sequentially while China salesnear tripled suggests that China sale willnot weigh on margins as some have feared.[Barron's: i.e. China solar industry is notin the mood for a price war.] We notethat our checks show module ASPs up~10% in China YTD.

The solar industry is showingclear signs that the supply vs.demand balance is improving,and we expect YGE's grossmargin to rise in the quartersahead.

Japan was also a bright spot to firm upYingli's sales:

While not broken outspecifically, sales to Japanrose sharply in YGE's "Restof World" grouping, and thecompany suggests that Japancould rise to account for 13-15% of revenue in 2H13, adoubling from the 6-7% in2Q13. Growth in China andJapan will help to offset thedecline expected in Europeanshipments in 4Q13; a declinebrought on by the EU-Chinaagreement of a shipmentquota.

So far so good.

But looking down the income statement,operating margin (-3.8%) has not improvedas much as the analysts had hoped for:

With operating expensesgrowing 22% sequentially ona 23% increase in shipmentssuggest that the company ishaving a difficult time gettingthe extra revenue to fallthrough to the operatingincome line.

As a result, the bottom-line earnings pershare was still in the red and Maxim Groupdoes not expect Yingli Energy to be out ofthe deep, dark woods in 2014.

Page 3: Charles graham vanilla spilla seekingalpha john thomas report - yge -buy recommendation

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the deep, dark woods in 2014.

Yingli has too much debt. The companyhad to make $36 million interest paymentson a $65 million gross profit.

The so-called tier-one Chinese solarcoYingli Green Energy Hold. Co. Ltd. (ADR)(NYSE:YGE) stock is at $7.11, up +2.45percent from its previous close of $0.075.The stock opened the session at $0.075and touched its highest price point at$0.077.

Stocks graphical chart shows a bullishtrend during its last one month's tradingsession. It remained positive with +116.77%during previous three months trade. Itsrecent trading volume was 10.31 millionshares in comparison to its usual tradingvolume of 7.08 million shares. Yingli GreenEnergy Holding Company Limited is avertically integrated photovoltaic (PV),product manufacturer worldwide.

Can the Rally in Yingli Green Energy Hold.Co. Ltd. (YGE) S

Yingli Green Energy Hold. Co. Ltd.(YGE) been on the move lately as thestock has risen by 35.54% in the past fourweeks, and it is currently trading well aboveits 20-Day SMA. This is a pretty solid movehigher, but the question that has to be oninvestors' minds right now is; can this trendcontinue?

While there can be no telling for sure, it iscertainly encouraging that earningsestimates have risen in the past few weekson the company, suggesting that sentimenton YGE is moving in the right direction. Infact, the stock currently has a Zacks Rank#2 (Buy), suggesting that the recent runcould certainly continue for this in-focuscompany.

As you can see on the chart below fromincestorwand.com , you can see that mytarget is $12 dollars over the year. China isputting more dough is this bad boy than youand I will ever know, but rest assure, just tolet you know I have been following this badboy about 4 years, so I know the ins andouts of its techinal pattern, and trust mewhen I tell , to this blogpost short,if I wereyou I would be picking up this stock handover fist. We are about to see a breakoutgentlemen, get in while can!! Have fun, take

Page 4: Charles graham vanilla spilla seekingalpha john thomas report - yge -buy recommendation

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gentlemen, get in while can!! Have fun, takechances , and make money!

Analyst?ResearchFirm?

Signal?SignalDate?

InitialPrice?

PriceTarget

VishalShah

DeutscheBankSecurities

BuySep27, '13

6.73

CharlesGraham

Unaffiliated BuySep26, '13

6.10 12.00

AdamKrop

ArdourCapitalInvestments

BuyAug30, '13

4.30

SatyaKumar

CreditSuisse

SellJun02, '13

2.96 1.80

NitinKumar

Nomura BuyJan16, '13

2.80 6.90

MarkBachman

AvianSecuritiesLlc

BuyAug21, '11

5.57 7.50

Disclosure: I am long YGE.

Additional disclosure:www.investorwand.com/recommendations/vie...www.investorwand.com/recommendations/vie...

Themes: yge, china solar stocks, ygebullish Stocks: YGE

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