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  • LDK Solar: A Tremendous Buying Opportunity [View article]
    Excellent article!

    LDK currently has a PE of ~4 despite current quarterly growth > 100%. If this company was valued like a hi-tech company, it's PE would be close to it's growth rate, thereby giving it a share price of (100/4) x $7.60, or about $190/share.

    Mister market is valuing this company as if it were on the brink of bankruptcy. With a $9B credit line, upcoming IPO and profitable operations, the chance of a liquidity issue is minimal. However, with solar at or near grid parity, a price/book below 1 and exploding growth for solar in China, India, US, Australia, etc., the upside potential far out ways the risks.

    Long LDK, STP, TAN
    Jun 1, 2011. 08:16 AM | 4 Likes Like |Link to Comment
  • Competitive Positioning in PV Manufacturing: The 7 Metrics That Matter [View article]
    You left out Suntech Power (STP) from your chart. They are the biggest PV module manufacturer in the world and they extended that lead by a considerable margin with their last quarterly results.

    LDK is the second largest Wafer/PV manufacturer according to last quarter's results.

    That's like leaving out Ford and Toyota from a comparison of car manufacturers.
    Jun 7, 2011. 08:52 AM | 2 Likes Like |Link to Comment
  • LDK Solar: A Stock to Watch [View article]
    I am glad to see a few people recognizing this as the one of the greatest value stocks of all times. I too have been investing for about 20 years and I have never seen anything close to what is happening in the Chinese solar sector. Not only are companies like LDK and STP selling at unbelievably low valuations (price to book of less than 1, PEs in the low single digits), but the sector represents one of the greatest growth opportunities of all times.

    For 30 years, solar has disappointed those with lofty expectations. That dynamic is changing rapidly. Solar has reached grid parity in Japan, California, Hawaii, Italy and other geographies. If government subsidies for nuclear, coal and fossil fuels were phased out, solar would be cheaper in many other places. If legacy feul producers were required to pay for the harm they caused to the environment and consequences to healthcare, solar would blow past grid parity in all geographies.

    In the case of LDK, concerns over it's balance sheet have been greatly exaggerated. LDK has about $2B in debt and credit line of $9B from the Chinese Development Bank. The Chinese government plans to fund 50 Gigawatts of solar capacity in the coming decade. LDK is already too big and too strategic to the Chinese government to fail. On the upside, LDK is well-positioned to dominate a business opportunity greater than internet search or social networking.

    People will look back on this time and ask how so many could have been so blind.

    Long STP, LDK, TAN
    Jun 6, 2011. 09:58 AM | 2 Likes Like |Link to Comment
  • 30 Critical Housing Charts That Investors Must Consider [View article]
    Bah humbug! It's easy to be a pessimistic about the weather at the tail end of a hurricane :)

    This is a well written article and I applaud the extensive hard data. However, I think there should be a chart near the top about new home inventory at all time low and recent drops in unemployment.


    Disclosure: I'm long ITB & DHI
    May 27, 2011. 07:26 AM | 2 Likes Like |Link to Comment
  • Suntech Power Posts Strong Q1 Earnings in Weak Industry Environment [View article]
    Suntech is the clear world-wide leader in revenue from PV modules and in the last quarter they extended their lead. Margins are going along with market share despite strong headwinds.

    We are witnessing the emergence of a gorilla.

    Long STP, LDK, TAN
    Jun 8, 2011. 08:22 AM | 1 Like Like |Link to Comment
  • Fire Breathing Thin Film Players Look to Take On First Solar [View article]
    Based on Q2 results, Suntech Power (STP) is the largest solar producer however they seem to get little love from bloggers who continue to refer to First Solar as the industry leader.

    They have cancelled a foray into then film due to the falling price of polysilicon which has decreased from $400/kilogram to $40, eroding the cost advantage of thin film producers. Without a cost advantage, it's difficult to imagine a bright future for the thin film producers considering the lower efficiencies of their modules.
    Oct 21, 2010. 07:46 AM | 1 Like Like |Link to Comment
  • Cramer's Lightning Round - LDK Solar Is a Bad Stock (5/19/11) [View article]
    Cramer gives his opinion on how many stocks per week, a few hundred? He is obviously a very smart guy but his show is about entertainment more than investing.

    LDK is trading at a PE of about 3.5 with growth clocking in above 100% on the last quarter, > 200% the quarter before that. Their price/book just dipped below 1. LDK was founded by a 36 year old entrepreneur that had already build a 12,000 employee company before starting LDK.

    Most of the negativity is focused on the fact they cancelled a bond offering and their balance sheet is strained with ~$2B in debt. Apparently Cramer and the interns that prepare his weekly script, missed the news that the Chinese Development Bank has extended a $9B credit line to LDK. www.sustainablebusines...

    Long LDK, STP, TAN
    Jun 3, 2011. 08:47 AM | Likes Like |Link to Comment
  • These 12 Real Estate Stats Scream One Thing (Part 2) [View article]
    Lou makes a suggestion to buy puts on ITB. Really?

    Well if the betting against the housing market is such a great idea then it was even a better idea 2 year ago, right?

    Wrong. ITB is up over 100% since March 2009. If you had bought puts in ITB over the last 2 years you would have lost your proverbial shirt and you will probably lose your nickers if you try that now.

    Stock prices are based on anticipation of future performance, not observation of recent history. A change in trend is all that is needed for stock prices to move upward. The housing market doesn't need to rebound for the stocks of home builders to move north. All that is needed is for the slope of the curve to change, which is what we have seen over the last two years.

    With all the naysayers piling in to write negative articles about real estate, a few months of good statistics would accelerate the upward trend in the stocks of home builders.

    So buy ITB, even if you are two years late!

    Disclosure: long ITB
    May 31, 2011. 07:30 AM | Likes Like |Link to Comment
  • Suntech Power Holdings CEO Discusses Q1 2011 Results - Earnings Call Transcript [View article]
    Jeffries cut their price target on STP to $7. That would give Suntech a forward PE of ~6 and price to book of ~0.65, for a company that is growing at 60%, is the largest solar PV module manufacturer in the world, in the biggest growth sector of the next few decades, located in the largest market (China) run by an incredible entrepreneur.

    Jeffries' motto is "See possibilities, not obstacles."
    Well said my friends, well said.

    My price target for STP is $480/share in 2020, which would give them a market cap of $100B, or 1/4th that of Exxon.

    Long STP, LDK, TAN and backing up the truck...
    May 27, 2011. 08:14 AM | Likes Like |Link to Comment
  • 5 Leading Solar Energy Stocks That Have Already Begun Long Term Uptrends [View article]
    The swipe at Republicans is legitimate, this coming from a right leaning independent. Most high profile Republicans denigrate alternative energies, global warming and all things scientific as liberal.

    John McCain should be out there trumpeting solar considering First Solar is based in Arizona. Instead he is an advocate of building 45 new nuclear plants by 2030 and loosing oil drilling requirements.
    www.ontheissues.org/20...

    Republicans could support solar for contributing to energy independence, strengthening national security or extending US exceptionalism through technology. Instead they take the wrong side of the issue, letting their position be defined by progressives.
    Feb 21, 2011. 09:46 AM | Likes Like |Link to Comment
  • Suntech Should Rebound Strongly in 2011 [View article]
    Some countries like Italy and Japan are at or close to grid parity. Subsidies are being reduced, in part to reflect the growing competitiveness of solar.

    If overcapacity emerges it will expand grid parity to other regions, increase demand soak up excess production capacity.

    Suntech Power is the largest PV producer in the world. It's growing at 40%, with a forward PE of 8. It's trading slightly above a price/book of 1. That's an insult to intelligence. If Zhengrong Shi stays focused on the business, this stock is going back to $80 where it belongs.
    Feb 11, 2011. 08:44 AM | Likes Like |Link to Comment
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