Yingli Green Energy is about to release earnings. Follow the graceful yet dangerous Black Swan floating nearby.
Yingli is approaching a stage in development where cost efficiencies will slow down and no longer become the drivers they used to be.
Chinese banks have continued to finance bankrupt competitors which has inflated near term supply and prevented the market from becoming efficient. Yingli will be stuck in the muck with other Chinese firms.
Yingli has huge interest expenses. This mitigates any improvements in profitability. The debt may be strategically toxic.
George Gutowski writes from a caveat emptor perspective.