Use access key #2 to skip to page content.
$33.71 -1.30 (-3.71%)
7/23/2008 4:00 PM

LDK Solar Co., Ltd. (LDK)

CAPS Rating:
***

The Company manufactures multicrystalline solar wafers, which are thin sheets of crystalline silicon material primarily made by slicing multicrystalline ingots or monocrystalline boules.

View All Commentary (LDK)

Recs

11

Avatar GeordieMc (86.85) Submitted: 4/17/08 10:31 PM : Outperform Start Price: $34.31 LDK Score: 5.69

My understanding from (extremely minimal) research on this stock is that it's been beaten down by concerns over ballooning inventory. While, in many cases this is should be an extremely large and vigorously waved red flag, some perspective is in order in this case.

Increase in Inventory from '06 to '07: 368% (Yikes!)
Increase in revenue from '06 to '07: 480% (Wow!)

It therefore seems very reasonable to me that they would invest so much in inventory when sales are through the roof. At a P/E of 24.5 I'll take it.

Report this Post Replies: 0 | Reply

Featured Broker Partners