Sneha Shah
Long/short equity, research analyst, tech, solar

LDK Solar - Minus $639 Million In Negative Book Value Makes The Stock Value Zero

LDK Solar (NYSE:LDK) is surviving due to the benevolence of the Chinese government. The company has made monumental blunders in the past and has executed dreadfully on its strategy. The company used to be the world's biggest supplier of wafers and built a giant 15,000 ton polysilicon plant. However, the company faced massive time and cost overruns which created a massive $3 billion debt mountain. The plant now lies idle as it is unable to compete with other low cost polysilicon companies. The company's expansion into other parts of the solar supply chain has also failed. The company sold one of the world's largest solar cell factories for a pittance and the company's foreign downstream acquisitions have also...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
  • Access Top Ideas, chosen by Seeking Alpha’s editors
  • Filter long and short ideas by market cap and sector
  • Get Coverage of over 5,000 stocks, many of which have little or no coverage elsewhere
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO." Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else." Patrick Rice, Mainstay Capital Management
100% Satisfaction Guaranteed
Money back guarantee. Seeking Alpha PRO members receive a no-questions-asked refund for membership on months paid and not used. Details