Auriga: “LDK Solar (LDK) Cash Position Precarious”

Auriga’s Mark Bachman was out with a note this morning saying LDK Solar’s (LDK) cash position looks precarious due to Q-Cells repayments and debt obligations and that they may need a fresh infusion of the green stuff soon, likely with an equity offering.  They also see a possible sale of another chunk of its poly plant and/or debt restructuring.

They have not rating on LDK currently.

Traders don’t appear to be too concerned with Auriga’s note at least yet.  The stock is up another 2% today and continues a torrid run.  It is overstretched in the short term.

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3 thoughts on “Auriga: “LDK Solar (LDK) Cash Position Precarious””

  1. This guy is too stupid. He doesn’t know how to run a business in China. LDK can easily get all the money it needs from local government. Peng will not be so stupid to sell cheap shares to dilute the share price. He owns more than 70% of the outstanding shares. Its polysilicon business expansion has almost completed, and its profits from the poly manufacturing is huge. How can you expect him to dilute the share price at this time?

  2. Totally agree with you, The Poly side of the business is huge, LDK is the largest solar company in the world, (larger than FSLR) production is going to reach 4 gigawatt’s next year and they have enough poly production to ramp up to over 10 gigawatt’s. This is all trying to get people to sell their share’s so the shorts can buy them back. LDK has the largest short position among all other Chinese Solar’s, over 20%. With the ramp up of 2nd poly plant this quarter the profit should be hitting aprox 0.80c EPS. And it gets better this should be the last quarter where they write down their last lot of poly inventory into blended cost’s. So Q4 all poly production will be running at $30kg

  3. I swear if I acted on this analcysts research note I would dedicate the rest of my life to making sure this Backman Moron isn’t giving advice to anyone. How can you be so far off when the hand writing is so clearly on the wall? LDK just annouced they HAVE 800million in cash at the end of the THIRD quarter. What will they have at the end of the 4th quarter??? Over 1 billion in cash on hand. This sissy analyst has screwed many would be investors either by being a short scum, or being unqualified to work this type of job.

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