President-elect Barack Obama has often repeated his stance on alternative energy. He plans to spend $150 billion over 10 years on alternative energy, not only as part of his energy independence plan, but also in order to help clean the environment, and perhaps most important of all, to create 5 million new jobs.
With Obama winning in the polls, it is no wonder that on Tuesday solar stock prices soared: SunPower Corporation (NASDAQ: SPWRA) finished the day up 14.6%, Suntech Power (NYSE...
So...I wrote about a break in the correlation between oil and solar stocks the day before oil takes a major tumble that crushes solar stocks at the same time. The one-day massive move on September 2 did not re-establish a correlation, but it was jarring nonetheless. All sorts of stops and targets triggered, and I am still trying to sort out the meaning of the action and make plans for the next month or so. At times like these, I find writing to be a great organizing and clarifying tool. I will focus here on explaining my short-term positioning in various solar stocks since I did not do so t
Imagine a company that is so successful that it can handpick its clients. A company with products so highly coveted that it sold out its inventory for the fiscal years of 2008 through 2009, and nearly 50% of its inventory for 2010. A company in an industry that has brought the cost per watt down from over 100$ per watt in 1975, to less than 4$ per watt in 2008. A company that has been averaging a 200% year-over-year growth rate for the last three years. Now stop imagining: This company is LDK Solar (LDK).
Performance:
Since its inception in early 2005, LDK has been setting the standard fo
8/11 - "There is a good chance for $2.75 in earnings in 2008 for LDK Solar - even taking into account the $40 price tag in after hours that is under 15x forward earnings if the $2.75 is good. If you go with analysts ($1.70 + $0.40 beat) = $2.10 the forward PE ratio = 19. For triple digit growth. Instead people are flooding into retailers and restaurants (and autos and airlines and financials) for similar PE ratios... for 1/10th the growth. Because thats what the quant hedge funds say is "the truth"."
"Look, if restaurant stocks and clothing stores deserve forward P/Es of 16-19, I don't car...
8/12 - "If there was a dark spot in the announcement, it revolved around gross margins. Although average sales prices were higher than most analysts expected, the cost of polysilicon (or poly) continues to be high. Gross margins came in at 25.4% which compares unfavorably to 27.7% last quarter and 35.2% a year ago. Management stated that they expect margins to continue to show weakness in the third quarter before rebounding in the fourth quarter and into 2009."
"Any delay in LDK’s plans to produce raw materials would likely be a disappointment to investors. But the positive side of this ar...
8/13 - "LDK Solar Co.’s (LDK) revenue and earnings for the second quarter continued to show strong growth, which again exceeded market expectations. We think LDK will continue to grow quickly in the next few quarters due to its aggressive capacity expansion and strong growth of solar power industry worldwide."
"LDK is well positioned to leverage the growth prospects of solar power industry...Additionally, the company uses a wide range of silicon feedstock material in its manufacturing process, which lowers its cost basis compared with companies that use a higher percentage of high-cost vir...
After spending most of the summer in the dark, the solar industry is seeing a ray of light today after an earnings report from LDK Solar Co., Ltd. (LDK). The stock is currently up about 19% on the day and related companies such as Trina Solar Limited (ADR) (TSL), and ReneSola Ltd. (ADR) (SOL) [...]
As discussed a quarter ago many of these module makers were getting a huge currency benefit; people didn't care that this had nothing to do with their operations - they just saw the headline press release and saw big numbers and ran up the stocks. Yingli Green Energy showed the effects of what happens when currency goes against you as they had a $20M swing from 1 quarter to t
LDK Solar (LDK) - complete crap shoot with any of these solar names around earnings. The sector is out of favor is the overriding theme. In the 2 years or so I've been in these stocks this is the longest I can remember absolutely no rally in the group.
You just never know with these guys - they can be up 25% or down 25% within minutes of their earnings report. In LDKSolar's case it's "up" (20%). The chart did not signal much before hand... We don't own a major stake since we've taken a basket approach to the sector so we won't benefit much but ...
LDK Solar Co., Ltd., through its subsidiaries, engages in the manufacture and sale of multicrystalline solar wafers to the manufacturers of solar cells and solar modules in the People’s Republic of China and internationally. It offers multicrystalline solar wafers between 180 and 220 microns in thickness. The company also provides wafer processing services to monocrystalline and multicrystalline solar cell and module manufacturers. In addition, it manufactures polysilicon materials, which include ingots and polysilicon scraps. The company was founded in 2005 and is headquartered in Xinyu ci...
7/16 - "I believe many Chinese Solar companies like Trina Solar (TSL), Yingli (YGE), and LDK (LDK), are good buys after the recent sell off...In the past two weeks, a small perfect storm has forced solar shares much lower. There have been analyst downgrades and concerns over secondary offerings, speculation that Spain might cut subsidies, and in general, a steep sell off in Chinese and US equity markets. These stocks seem to be highly susceptible to fear, greed, analyst remarks, and speculation."
"I think all of the above concerns are mere speed bumps for these companies to roll right over...
When considering solar stocks, the conversation always turns to the cost of silicon and solar wafers, the raw materials that go into solar cells and photovoltaic solar panels.
For some time now, the industry has suffered a shortage in silicon. This has driven up prices and led to PV panel manufacturers implementing long-term contracts to assure adequate supply in the future.
LDK Solar (LDK) has recently fallen about 26% in the past week due to the speculated cut of solar subsidies in Spain. Ironically LDK has released not one, but two press releases highlighting favorable developments. One of these is a billion dollar contract with Canadian Solar (CSIQ). The second was an update to the rapid completion of their 1000MT polysilicon plant.
I bought LDK at $35.40. Solars were weak today after GS downgraded TSL to conviction sell due to "cash flow concerns". However, LDK announced that its polysilicon plant is on schedule, which is great news.
LDK is building its own polysilicon plant in Xinyu City, China, to help offset soaring costs on the raw material.
In a statement, LDK Chairman Xiaofeng Peng said the company expected to produce between 100 and 350 tonnes of polysilicon this year.
Ultimately, the plant is expected to produce up to 15,000 tonnes of polysilicon a year. The first phase of construction, which will give the plan
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About LDK Solar Co. Ltd.
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President-elect Barack Obama has often repeated his stance on alternative energy. He 
