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LDK Solar: 50% Markdown Appears Excessive

According to SEC documents filed by LDK, they have about 7% virgin polysilicon. They may have a short term inventory problem which can hinder their production. Long term, they will build a facility that eliminates that problem just in time for an industry oversupply of polysilicon according to at least one analyst.

LDK Solar: The Pros, the Cons, the Recap

The real inventory issue regards not this discrepancy, but future inventory commitments needed to fill sales contracts. In a time when polysilicon is scarce and in demand, can LDK generate enough true inventory commitments from suppliers to meet its sales commitments? If what I read is correct, according to SEC filings by LDK, the company's largest supplier (in terms of multiyear future commitments) had not yet sent any material as of July 3rd even though its contracts had called for deliveries to start months earlier. I have sent two emails to Jack Lai asking about this supplier and LDK's other supply commitments in light of all the recent sales commitments. So far neither he nor anyone in his office has responded.