According to StreetInsider.com, Piper Jaffray is out with a Sell rating on LDK after the company reported poor earnings yesterday and slashed the price target from $9 to $3.  Here are Piper’s notes on LDK:

– steadily deteriorating balance sheet
– plan to construct a polysilicon plan too much of a risk and possible liquidity drain
– hundreds of millions of customer prepayments that had been promised to fund the new plant are now in default
– drop in polysilicon prices will likely result in additional inventory write offs

LDK is off another 5% this morning and now trades below $4/share.