Yingli Green Energy Holding Co. (YGE)

Stock of the Day
Yingli Green Energy Holding Co. Ltd. (YGE)
Monday’s Closing Price: YGE – $32.24

Sector: Technology
Industry: Semiconductor (Solar)
52-week Price: $10.48 – $41.50


As I said last night, the stock took a hit to end last week on heavy volume which concerns me but corrections are healthy. A pullback to the mid $20’s could be possible based on the prior pullback in October and November. I am looking to add shares based on institutional numbers alone (which are listed below). Approximately 10 million more shares were bought than sold for an estimated “plus” $400 million during the last reporting period.

We had 47 new positions established while 3 positions were sold out (about 15.6-to-1 ratio of buyers to sellers). The float is 25% of the outstanding shares and the market capitalization is more than $4 billion which puts this stock in the bull’s-eye of major institutional investors.

Volume is averaging about 5 million shares traded per day and increasing as each month passes. The ideal entry is somewhere in the mid-$20’s range or slightly above the prior pullback area of $22.50.

This stock has triple digit potential and could be a leader come year’s end. If the opportunity presents itself: trade it and follow the rules! If it fails, sell! It’s that simple.

Sister Stocks (Top Rated Industry by IBD):
FSLR – $236.84
STP – $74.96
SOLF – $31.78
JASO – $68.05

Potential Trade Set-up:

Ideal Entry: $25.00
Risk is set at 1.0% of total portfolio or $1,000 of $100k
Stop Loss is 10% or $22.50
Number of Shares: 400
Position Size is $10,000
Risk is $2.50
Target is $44.00 (based on former peaks and bottoms)
Reward-to-Risk is 7.6-to-1 with ideal entry; less with current price

Institutional Analysis:
Held By Institutions: 18.07%
Total Held by Institutions: 71
Money Market: 57
Mutual Fund: 14
Other: N/A

New Positions: 47 – excellent!
Positions Sold: 3
Shares Held: 33.4 mil
Shares Held Previous Period: 24.2 mil

Shares Bought: 16.0 mil
Shares Sold: 6.8 mil
Value of Shares Bought: $626 mil
Value of Shares Sold: $266 mil

Top Institutional holders; Shares Held:
Mackenzie Financial Corporation; 5,497,300
Ivy Global Natural Resources Fund; 4,670,200
Deutsche Bank Aktiengesellschaft; 3,483,974
Miura Global Management, LLC; 2,564,000
Powershares Exhg Traded Fd Tr; 2,538,311

Key Fundamental Numbers:
Market Cap.: $4.4B
Outstanding Shares: 126.9M
Float: 29.0M
P/E (TTM): N/A
PEG Ratio: N/A
Price to Sales Ratio: 10.22x
Price to Book Ratio: 8.35x
Total Debt/Total Capital: 23.06%
Quick Ratio: 1.92x
Operating Profit Margin: 15.55%
Gross Profit Margin: 22.93%
Net Profit Margin: 13.13%

3-yr EPS Rate: 110%
3-yr Sales Rate: 240%

EPS Growth (MRQ): 86%
Revenue Growth (MRQ): 129%


Yearly (2009): $1.56E – High: $2.47
Yearly (2008): $0.86E
Yearly (2007): $0.46E


  1. Chris: Could you share where you get your institutional data? The data I see in IBD is significantly different and even looking at MSN today they show 38 new positions and a different mix of ownership (which I assume is outdated).


  2. Hi Chris
    Very good analysis………but I do not agree with the entry price you gave. I am sure you were using charts to come to that analysis. I think 33 is the ideal entry according to trendlines.
    Mid 20s is sth we might never see unless the market tanks.

  3. Mike,
    I use Vicker’s Institutional Research.

    Yes, a trnedline is there as I posted int he chart on Monday but I don’t like the risk/reward in that spot so I won’t take the trade there. Too much risk versus too little reward above $30 (for me at least).

  4. Good post man! I agree $33 is still pricy…we will see the 20’s.

  5. Hi.chris Entered position @24.85. grate work keepit up. H.

  6. I haven’t bought YGE – due to market weakness but may enter a portion of my position tomorrow if we open up across the board. I had a big feeling that the mid $20’s was very possible with a market pullback.

    A close below $22.50 is not veyr positive!

  7. Its little wonder this stock has been recommended by credible institutions such as Piper Jaffray, Merrill Lynch and Collins Stewart.

    Its likely YGE had reached its lower threshold at $24. Support was exceptionally strong at this level. Upward volatility suggests a high degree of interest in the stock, outweighing the economic fallout.


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