ezetrader

Three Short Ideas: PF Chang's, Palm, LDK Solar

LDK is the world's largest solar wafer maker with the lowest cost production in the world. Skeptics did not believe they could also build the world's largest polysilicon plant. Now that the plant is in startup, the shorts are praying that the market turfs before full production or else this will be one hell of a squeeze. Shorts are probably caught unable to find shares to cover and are doing their best to hedge their position and hold the price down.

On March 12,2009 LDK was at $4 with short interest about 11.5M, April 30 it was $8 when the short position was 12M. Today it is over $11 with a short position over 19M. Get the picture.

I am currently long LDK with some ultra dow puts.