I have taken a beating on a couple of chinese PV wafer makers, LDK and SOL. I bought in a couple months ago at 5x p/e based on already strong growth, and thinking that rising energy prices would spur further demand for solar panels. And I held after the tsunami because I figured there would be a lot of demand there to rebuild, and/or lost capacity that would have to be picked up by Chinese producers. But they just keep falling! I did not anticipate the loss of European government subsidies which seems to be a big factor.
What do you think, are these a hold? LDK is now close to book value - surely that's the floor? http://www.takeoverchatter.com/2011/05/positioned-for-takeover-nyse-ldk.html
Looking forward I am mostly worried about all the fraud in chinese small caps discrediting the whole market. How concerned should I be about the wafer companies?
What do you think, are these a hold? LDK is now close to book value - surely that's the floor? http://www.takeoverchatter.com/2011/05/positioned-for-takeover-nyse-ldk.html
Looking forward I am mostly worried about all the fraud in chinese small caps discrediting the whole market. How concerned should I be about the wafer companies?