Archives
June 2007
6/29/07
6/28/07
6/27/07
6/26/07
6/25/07
6/22/07
6/21/07
6/20/07
6/19/07
6/18/07
6/14/07
LDK Solar Co.: This Stock's Day in the Sun is Coming Soon
6/13/07
6/12/07
6/11/07
6/8/07
6/7/07
6/6/07
6/5/07
6/4/07
6/1/07
Thursday, June 14, 2007
LDK Solar Co. Ltd (NYSE:LDK)
is the second solar company from China to go public in the last month.
I've been watching this company for quite a while, have been quite
impressed by it, and I immediately picked up shares after the June 1
IPO.
In fact, I picked up shares much cheaper than I had expected. The timing of this IPO coincided with too many IPO's at one time and LDK rode into the storm of China's stock market downturn the following days. LDK offered 17.38 million shares at $27 and raised $469 million at its IPO. With the shares currently at $23.75, I see a bargain.
Based in Xinyu City, with an office in (appropriately named) Sunnyvale, California, the company manufactures multi-crystalline solar wafers. These are the raw materials used to make solar cells and modules, used to covert sunlight to electricity. Its technology for the production process is proprietary and the firm can utilize recycled and "scrap" polysilicon feedstock, giving it a leg up on competition and making it very quickly one of the leading manufacturers in the business. LDK also provides its proprietary wafer processing services to other manufacturers of multi-crystalline solar cells.
In this day and age, we are all seeking alternative sources of energy, whether it is wind, wave or solar. Some researchers claim that by 2070, over 50% of the alternative power generated will be solar in nature. LDK has demonstrated to me the early signs that it can succeed. Fast growing, its annual production capacity is projected to increase from the 215 megawatts of March 2007 to 400 megawatts by the end of 2007. By December 2008, the capacity is in line to grow to 800 MW. LDK has demonstrated an ability to grow quickly while maintaining (and increasing) terrific margins.
Of the nascent solar tech companies out there, the future of LDK shines brightly.
Type of stock: A manufacturer of multi-crystalline solar wafers, the raw material used to make solar cells, this is a new and fast growing company based in China.
Price target: While the IPO was on the high end at $27, the stock has dropped to $23.85 so you can get in now at a significant discount to the company's intrinsic value. I think this is one that we could see hitting $40 within the year, based on its strong growth projections and proprietary, effective, and useful production process.
hilaryonstocks at 1:28:00 PM EDT Blog about this entry |
Add to del.icio.us | 
digg this
LDK Solar Co.: This Stock's Day in the Sun is Coming Soon
In fact, I picked up shares much cheaper than I had expected. The timing of this IPO coincided with too many IPO's at one time and LDK rode into the storm of China's stock market downturn the following days. LDK offered 17.38 million shares at $27 and raised $469 million at its IPO. With the shares currently at $23.75, I see a bargain.
Based in Xinyu City, with an office in (appropriately named) Sunnyvale, California, the company manufactures multi-crystalline solar wafers. These are the raw materials used to make solar cells and modules, used to covert sunlight to electricity. Its technology for the production process is proprietary and the firm can utilize recycled and "scrap" polysilicon feedstock, giving it a leg up on competition and making it very quickly one of the leading manufacturers in the business. LDK also provides its proprietary wafer processing services to other manufacturers of multi-crystalline solar cells.
In this day and age, we are all seeking alternative sources of energy, whether it is wind, wave or solar. Some researchers claim that by 2070, over 50% of the alternative power generated will be solar in nature. LDK has demonstrated to me the early signs that it can succeed. Fast growing, its annual production capacity is projected to increase from the 215 megawatts of March 2007 to 400 megawatts by the end of 2007. By December 2008, the capacity is in line to grow to 800 MW. LDK has demonstrated an ability to grow quickly while maintaining (and increasing) terrific margins.
Of the nascent solar tech companies out there, the future of LDK shines brightly.
Type of stock: A manufacturer of multi-crystalline solar wafers, the raw material used to make solar cells, this is a new and fast growing company based in China.
Price target: While the IPO was on the high end at $27, the stock has dropped to $23.85 so you can get in now at a significant discount to the company's intrinsic value. I think this is one that we could see hitting $40 within the year, based on its strong growth projections and proprietary, effective, and useful production process.
hilaryonstocks at 1:28:00 PM EDT Blog about this entry |
Add to del.icio.us | digg this
This entry has 3 comments: (Add your own)
-
is this stock traded in US DOLLARS globally? Meaning do I have currency risk here?
-
Solar has a future. But, it may be awhile. Current solar technology can't produce enought power for industry. Therefore, it is pretty much a residential product. However, with new homes in a downtrend and the cost of conversion to solar, I'll bet you $40 comes somewhat after 2007.
8/23/07 8:16 PM
There has been news indicating that George Soros acquired a stake in the company. No mention of how large a stake, however.
Does Hillary recommend selling or continuing to hold.