Well, STP disappointed last week missing expectations. I've been sidelined for the most part since Jan options expired. I've been waiting for a rally on my solar stocks so that I can write calls on them, but that rally has yet to appear. Hopefully tomorrow will spark a rally via a positive guidance from LDK. LDK has already warned earlier this month about problems with shipments due to weather, and so I believe that the bad news in terms of missing earnings is already priced in. I think the catalyst for the movement tomorrow will be in the guidance. How has/will the weather affect the rest of this quarter and guidance for 1Q and also 2008?

I increased my position in LDK by 50% at the end of last week. It's really hard for me to see how LDK can go any lower than it is right now. Last year it gave some guidance for FY08, w/ revenue at just below $1 Billion, and gross margins around 28%. With these numbers, this puts LDK close to the top of the solar sector in terms of margins and revenue. Its current P/E at 25.59 as listed by Google Finance, and I calculated it's 08 EPS to be around $2.22. That puts its projected stock price at around $55 dollars for 2008. I'd be happy with any price for LDK above $50 as that would give me a gain of about 30% for 2008 on LDK alone. 

Good post I hesitate to vote for anyone going long right now.

LDK high risk low return,

20 Day bollinger Hold

short term indicators 80% sell

 scale is -100% to 0 to +100%

Medium Term Indicators 75% Sell with 40 Day Commodity at a HOLD

LONG TERM INDICATORS show a HOLD, with 60 Day Commodity Channel HOLD, 100 Day Moving Avg vs Price is a Sell and 50 -100 Day MACD Oscillator at a Buy.

 That is the tech side.

LDK is popular, a chinese company and projecting growth of 300% by the end of 08 and expanding to 1900MW in 2009.

 Management team is experienced, dedicated and very serious about their business. First impression is honest and people who you can do business with.

ISO 9000 certified

Top enterpenuers twice

Red Herring top 100 asia 2006

Website is presented well conductive to business, Investors and vendors

LDK looks like they go for long term contracts. Korea, Taiwan, Germany, China

 downside is the price of silicon. plus LDK is carrying a slightly heavy debt load but that is due to start up and Growth.

down side solar cells are nothing new, there in calculators, shingles, satelites, vehicles, boats.

the one thing that is going for LDK is labor cost, which would more than offset the cost of silicon to make LDK a worthwhile investment, especially with 26% to 31% projected gross margin.

I would say LDK is a good pick especially after ramping up twice after the IPO. granted the third ramp might not be as impressive.  Once LDK share price finds itself and LDK gets some history and quarterly reports under its belt to smooth out the fluctuations this will be a steady growth stock.

I can't even imagine playing this twice for 100% gain in less than six months. too nerve racking, but a good pick at the right price. peace