semi-guru

LDK Solar: When Bad News Is Good

A positive opinion piece on the solar industry? My my, it must be a new year. How long has it been??? :)

The reduced guidance from LDK was expected since November, when investors slaughtered the stock for painting too rosy of a picture. It finally came home to roost. So once they announced, the news was already baked in. As I said in commenting on another article, the larger problem with LDK is why they don't have the sort of visibility into their business that the street and some analysts have, and why it takes them until the following quarter to realizer and announce it. After all, the miss was substantial, its not as if they were off by a couple of percent and didn't realize it until all the numbers were in.

LDK is an outstanding long term investment and has the potential of a 5-10 bagger once the poly plants are producing. I expect this will be stuck in a range for the next quarter or so, but the long term is what makes this attractive. Especially if the US can get off of its collective arse and get to work!

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Thank you Zachary for bringing some attention to this opportunity.