Tuesday, April 8, 2008

Somethings a-brewin' - LDK

News has been coming fast and furious from LDK (see).

Sold out for the next two years, new long term contracts, and now a $300 Million debt offering, and $150 Million Stock Buyback.

We may see some interesting action over the next few weeks, especially considering that the first poly plant (1000 MT / Year) is due to be complete by the end of April.

At last release, short interest was over 10 Million Shares, and we're still on the Naked Short Threshold List. Could we see a squeeze? I'm hoping so.

In addition, things seem to be going in the right direction for Solar right now. We have the Senate moving once again on an 8 year extension of Solar Energy Tax Credits, which, if passed, will put upward pressure on solar stock prices.

The wildcard that I see, is in the stability of the overall market. It's very possible that any positive news for Solar or LDK will be dwarfed by large magnitude writeoffs of debt by the financials, and the resulting drop in market values across the board. It seems that the International Monetary Fund suggests that we're looking at almost a Trillion Dollars in writeoffs, and we've not yet appoached this level of loss.

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