Why Roth Capital Is Selling Yingli Green Energy

Following the company’s latest Q3 and 2015 shipping guidance, Roth Capital Partners has had enough with Yingli Green Energy Holding Co Ltd (NYSE: YGE) and has downgraded the stock to Sell. Analyst Philip Shen believes that Yingli’s debt will continue to weigh on the company’s operations and that it will need to sell assets to make its upcoming October payment.

Negative Feedback Loop

Unfortunately for Yingli shareholders, Shen believes that the company’s disappointing shipment guidance will damage the fragile confidence that many of the company’s customers have in the company.

As a result, he predicts that customers will begin looking to transition to other vendors that have a more certain future.

Yingli’s business is weakening at a bad time for the company, as debt payments begin to accelerate to about $161 million in October and about $226 million in May of 2016.

The Numbers

Yingli’s disappointing Q2 preannouncement of $438 million in revenue badly missed…

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