David White

Chinese Tech Stock Weekly Summary (Sept. 22 - 29)

I should have mentioned that LDK has extensive long term contracts. Many of these have some price guarantee build in to them, especially the near term ones. This means LDK should be relatively immune to the coming slowdown. It shoudl be a great stock to own for the next 12 months, if not for several years to come.

Chinese Tech Stock Weekly Summary (Sept. 22 - 29)

Solar stocks should get a push upward if the bailout bill passes the house. Improving the credit crunch will improve solar prospects. It will tend to allow oil to rise (or stay at elevated levels), which is also good for solar stocks. But which of them should do well into the future? LDK is well diversified geographically. LDK's margins are likely to expand in the very near future, so they will have room to go down again as the solar market becomes more competitive. LDK is building its own polysilicone plant. This should help margins. Further LDK is one of the leaders in adopting UMG solar manufacturing. This too should help their margins. LDK looks to go up in the current environment. CSIQ also looks promising. It has some geographical exposure issues. However, it too is one of the leaders in UMG solar manufacturing. This should allow it to have increased margins in the near term. Then those margins will allow it to remain competitive in the coming shakeout in the solar industry. It should go up nicely from its current price if the bailout bill (with the 8 year solar tax credit extension) passes.