alpha24seven

LDK Solar and the Seven Samurai

I'm not buying it. "$1.824 BL in new contracts in 8 weeks". While I wouldn't fault your outlook for Chinese solar companies in general, if you want us to believe that these are smoking buys it would be nice if you'd quantify the contracts who-what-wheres.

The solar industry has a long established reputation of announcing massive new contracts which move the stock. When you look at the details of the contracts including the parties involved, terms and other ancillary (critically important) info you begin to realize the ramifications. Witness one US based solar company that released a "contract PR" for many millions of dollars. Upon further review the company that they signed the contract with consisted of four people with out the necessary subsidies to execute the contract nor the geographic footprint to complete the deal. The stock moved up on the contract. Witness all the internal deal points like "take or pay" or far reaching multi year delivery schedules that basically make many of these contracts porous as Swiss cheese. They still move the stock higher on announcement.

Quantify the contracts and we shall see.