solar energy articles 2008
Something strange happened to LDK Solar (LDK), on Tuesday. The population of the lowest gaps in the open after the company announced earlier figures for the fourth quarter. The release was not pretty and investors were not satisfied.
Basically, the company said revenue would come to U.S. $ 425-435 million compared to previous guidance for $ 555 to 565 million dollars. Solar shipments aspect that has been 245-255 megawatts, compared to margins previous guidance of 260-270 MW, and Gross is only about 10-13% (previous guidance was 18-20%).
The fourth quarter data was disconcerting, but which probably spooked investors a delay in the production of polysilicon. One of the most important initiatives in the coming quarters is inside polyethylene production. This will keep the company from having to rely on suppliers of poly that can be difficult to produce, and expensive. While the company is actively producing a small amount of poli, stated that there was a delay in the launch of this production to a higher level … Bad news!
Back to top The funny … It seems that at the end of the day, more investors are trading LDK! could ignore the bad news, because people are already trading at such low levels. Shareholders have been very negative about the names of solar energy in recent months, but once the bad news actually reaches the public, may be surprising that the following actually be positive!
Looking to 2009, the company is giving lighter revenue guidance of $ 2.3 to $ 2.5 billion. Despite being lower than previous expectations, the figures are approximately 45% above from 2008 levels. In addition, the company expects gross margins of 22 to 27%. The margins are at least partly due to expectations of polysilicon production 3000 to 5000 megatons. I should note that the delay was on the ground poly Company 1000 MT. It appears that most plant of 15,000 tonnes (under construction) follows the calendar schedule and start the production of polyethylene in the second quarter. It is really best for the company to gain experience and make mistakes in the plant of 1,000 TM so that when the largest is ready for start of production, the company will have a better process in place.
Subscribers of ZachStocks growth model have already made a 9.5% the name and are looking for new developments. Although Oppenheimer declined to 2.90 EPS estimates for 2009, the population still trades at about 5 times forward earnings. It is likely that a large quantity of this strong competitor. LDK is sitting on $ 380 million in cash and access a $ 850 million in additional credit lines. Thus I hope that is financially stable and sufficient resources to continue building its business. As the company shows progress in the production of poly, and the market begins to realize the potential in alternative energy, LDK should prove to be an opportunistic investment.
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The MIT Energy Initiative: Sustainable Energy and Terawatt-Scale Photovoltaics
