Saturday, August 30, 2008

Asensio is at it again.

Looks like Asensio is making allegations again, trying to start a new short attack on LDK.

If you haven't heard of him, Asensio is a low-life famous short seller, who had a hard on for LDK last year, using the same types of rumors that we see coming from him now. His arguments are crap, and he likely is a significant chunk of the Short Position that is currently trapped in LDK.

The article linked above suggests "LDK's most recent financial statements show questionable entries, including its "inventories to be processed beyond one year" numbers," as one of Asensio's "concerns." Well, the fact is that that classification of inventory relates to LDK's supply of Silicon Scrap, which is an integral part of their blending technologies, and it has been signed off on by not only the Accounting Firm KPMG, but also by a completely Independent Deloitte. This was all cleared up last year, and Asensio knows it.

As for other Accounting and Transparency issues, LDK has released equivalently detailed financial numbers as any of the other Solar Companies I've seen, including American Solar Companies, they've released a detailed Annual Report for 2007, have done detailed presentations of their Business Plans, Progress, and Technologies. In fact, we probably know more about the details of LDK's business than we do about any other Solar Company out there.

But apparently Asensio needs help from some new shorts to take the price back down for him.

He'll clearly even lie to make that happen. When he refers to the new deal with Hyundai Heavy Industries, he says "interestingly, there is no reference to the prior announcement and makes it look like a new contact." However, if you look at the actual release, you'll see that it does specifically refer to this as an "additional" agreement.


So, if I were a Short Seller following Asensio, I'd be thinking twice about whether he can be trusted, or whether he's just looking for a sucker to sell him some shares so he can get out of this action. Look at the Fundamentals of this Business and this Industry before you make a decision, and if you Really think that LDK is a sham, then go ahead and follow Asensio, but if you conclude that LDK really is what they say it is (which it is), then for your own sake, Don't Short. There comes a time in the market where Manipulation finally falls before the Truth of the matter, and that time is coming. I would suggest that you not be on the wrong side when it happens.



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1 comment:

Anonymous said...

Great article.
LDK has been a bashing target for more than a year. From Bill Alpert to Jesse Pitchel, from Sharie Tang to Karen Finerman...LDK proved once, twice and everytime, these people were 100% wrong.
LDK is determined to be the Intel of the solar, leader of the industry, no one will be able to stop it, regardless one like it or not.
There are so many self-served so called "analysts", some of them are totally ignorant and arrogant. They don't both do their homework or just don't want to go with the fact, all they do is bashing, bashing and nothing but bashing.