Yingli Energy Gets Dinged After 20-F Filing

Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.

Yingli Green Energy Hold. Co. Ltd. (ADR) YGE was trading lower by $0.57 at $0.92 in Tuesday's session. The Chinese solar company in a 20-F filing last Friday expressed "substantial doubt...to continue as going concern." In other words, the share price may be going to zero.

The once-high flyer peaked six months after its IPO (June 2007), which saw shares soar from $10.48 to $41.50. Since peaking at the elevated price, it has been a struggle for the company to recover. While other solar companies have prospered, Yingli has not been able to find a way to achieve profitability.

It declined from year-end price of $2.35 to a three-year low at $1.49 before recovering to close at the price on Monday. With the dire outlook being buried in the 20-F filing, it has taken the Street a few days to recognize the impact of the statement. Obviously, some investors had knowledge of it on Monday, as it opened on its high and closed on its low.

After a lower open, it swooned to $0.72 but has rebounded and is attempting to climb into the the $1 handle, but has peaked at $0.95 so far.