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%

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