YGE

I bought YGE at $15.75 on today's weakness. YGE reported its quarterly earnings more than tripled, and raised its revenue outlook for the year, on strong global demand for renewable energy. The company's stock, however, slid 7 percent on concerns that Yingli could be stuck paying high prices for its key raw material, polysilicon, while an expected pullback in government subsidies in Spain could hamper demand.

Piper Jaffray reiterated its Buy rating and $45 price target on YGE. The firm believes Yingli should be "a core solar holding given that 1. it has the lowest processing cost in the industry, and 2. because it has the highest poly cost today, it is most levered to eventual spot poly price reduction that we anticipate in '09." Piper believes the sell-off can be attributed to higher expectations being built into the stock, the fact that Yingli did not guide it...