Suntech Power Holdings Co., Ltd.(fka STPFQ)

[JD400]

STP $1.70 +0.35 +25.93% Break To Wire

http://finviz.com/quote.ashx?t=STP

Why Chinese Solar Stocks Jumped Today

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Suntech Power (NYSE: STP ) and LDK Solar (NYSE: LDK ) have jumped 19% and 26% respectively, after investors learned of a tax break.

So what: China's Ministry of Finance announced it will give manufacturers of solar products a 50% refund on value-added taxes to help the industry. This would lower the cost to manufacture a solar module and should help with anemic margins for manufacturers.

Now what: The Chinese solar industry as a whole is up today with Suntech and LDK leading the way, a curious move by these stocks. Both companies have defaulted on debt payments and are going to have to restructure operations. Shareholders won't likely be left with much in a restructuring considering the billions in debt both companies have, which means I wouldn't buy the move of either today.
read more here
http://www.fool.com/investing/general/2013/09/30/why-chinese-solar-stocks-jumped-today.aspx