It’s summer time, the weather’s nice, the sun is out — And so is Yingli Solar. Today, Friday August 8th I have decided to go all in on this stock. Make or break, this will ultimately decide the fate of my portfolio. Am I a little worried? Not at all. In fact, I have not been this certain that a stock is undervalued in over a year (since the whole Asian market began to gain steam). Paying $15.05 for a company that should be valued in the mid to high 20s was a no brainer for me. 52 Week High of 41.50, 52 Week Low of 11.44, I mean come on, the company IPOed for 10.50 for goodness sakes.

So right about now you’re looking at the 6 month chart and you’re saying in your head “But it has been on a downward slope and has shown no real signs of moving upward” hmmm… decisions decisions.

You’re absolutely correct, however lets remember one thing… It was also around that time that the Chinese Economy started experiencing inflation and the whole market began bleeding.

Lets take a look at Price, RSI, and Volume Charts.

As we can see the RSI is on its way up, the Volume seems to be growing and all of these factors working together should drive the price up.

Okay…Okay, so are you still doubting me? Lets take a look at what the Analysts have to say, along with their Price Upgrades post earnings release the past few days:

• AmTech Price Target on Yingli ($27)
• Piper Jaffray Reiterates $45 Price Target on Yingli
• Deutsche Bank Price Target $17 - Keep in mind they mentioned nothing about Germany, China, Italy and the United States (all of whom are YGE customers). All of their attention was focused on Spain, and the recent debate to sharp cut in the country’s solar subsidy program.

Now enough ramblings aside, lets take a look at a post published on Fool.com

Yingli Green Energy (NYSE: YGE) can’t touch solar competitor First Solar (NASDAQ: FSLR) in the margin department, but in its latest earnings report, it blew past SunPower (NASDAQ: SPWR) in gross and operating margins. So even though investors dumped shares of Yingli yesterday, there was plenty of sunny news in the quarterly press release.

In fact, Yingli’s 20% operating margin is where SunPower aspires to be within a few quarters. The company is achieving strong wafer yields and high conversion efficiencies, both of which contribute to the stronger margins. But there was other good news, too: Top-line growth was torrid, as expected, even though the 25% sequential surge was lower than the quarter-on-quarter growth that First Solar and SunPower reported.

There was also a marked improvement in Yingli’s working-capital management. The company cut days sales outstanding to 47 days, from 66 in the previous quarter. You know my cash-flow concerns in this space, so any improvement in cash collection is great news.

Left unaddressed in the company’s announcement, however, were the company’s poly silicon costs. Yingli has been sewing up incremental supply from companies such as DC Chemical, but it can still claim nothing on the order of Suntech Power’s (NYSE: STP) late-May silicon score. I’d like to see Yingli come out with a big, fat supply agreement with someone like REC Group or MEMC Electronic Materials (Nasdaq: WFR), to lay the margin-squeeze fears to rest.

Not all of my concerns were allayed this quarter. Yingli’s prepayments to suppliers are up almost 50% since year’s end and now equal 27% of total company assets. Compare that with roughly 9% for SunPower, and you’ll see why this situation makes me uneasy.

Finally, although Yingli’s equity dilution is pretty straightforward (the diluted share count is up 64% in a year), maybe less obvious is the impact of a line item on the income statement called minority interest. Here, we see that 30% of reported profits were directed to minority holders, and that left only 70% of the spoils to ordinary shareholders. Yingli can buy back this equity interest over time, but for now, it presents a significant extra hurdle for creating shareholder value.

Few Fools have yanked their support for Yingli, though, and the company retains a solid four-star rating in Motley Fool CAPS.

One last thing, over the weekend I managed to stumble by one of the best articles I have ever read in my life. Glance over it, learn, and understand how to become The Mad Genius of Mutual Funds.

Okay it’s 1:49 AM, I think I should get some sleep before work tomorrow.

What do you think is the future of Alternative Energy? Which of the many will survive?