bowman711

LDK Solar: Analyzing "Fishy" Analyst Actions

Regarding the 'fraudulent inventory' charges, a few of points need to be remembered:
1. The charges were apparently made by a 'disgruntled former employee.'
2. LDK has rechecked the inventory and reported that the numbers are right.
3. I believe that I recall reading that LDK had hired an independent auditor to check the inventory numbers.
4. LDK has hired some of the top law firms in the world to go after those making the charges and manipulating the stock price (suggesting that they are a) confident their numbers are right or b)confident that misreporting cannot be proved, or c) they are incredibly stupid and look forward to prison for their deceptions.

LDK Solar: Analyzing "Fishy" Analyst Actions

Since this type of manipulation seems to be somewhat common, what is the ultimate outcome for such companies? When the manipulators get tired of toying with the company, does it continue to languish or does it make a spectacular rebound or something in between? [I have 1,000 shares of LDK.] Should I sell and take my losses, or hold in the anticipation of an eventual rebound?