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LDK Solar Earnings and the Dark Cloud of Polysilicon Shortages

LDK is the only solar company that will have control of future costs. Their poly plant, which will be the largest in the world, is due to begin production this year. LDK is expecting margins of 42% to over 50% when their poly plant is running, with the lowest operating costs for poly production in the world. The current high poly pricing only makes LDK's poly plant investment even more valuable since other solar companies are much further behind.

No matter what happens to the price of poly, LDK will be in the best position by having their own poly plant with low operating costs. They also have a huge investment in silicon inventory which will keep their costs stable for the next 2 quarters. Per the CC they have over 90% of their silicon needs on hand or under contract.