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LDK Solar Co., Ltd. Message Board

  • vg_player27 vg_player27 Sep 14, 2008 6:33 PM Flag

    The cherry on top

    The shorts will have you believe that if the alt energy subsidies don't pass that LDK's business will dry up. Of course nothing could be farther from the truth. If the US passes new long term alt energy subsidies that would just be a big fat cherry on top of this LDK sundae. The ice cream, hot fudge, walnuts and whip cream (yeah it's a deluxe sundae) has been provided by all the new contracts signed in Germany, Japan, India, China, Taiwan, South Korea, Belgium, and Greece. All of which have or are expected to pass subsidies. Heck Japan didn't even have subsidies in 2007 and still had more installed capacity than the US did in the same year with subsidies.
    If you look at all of the LDK signed contracts over the last year and a half none of them are from the US. So if the new energy legislation doesn't extent the tax credits it really won't materially affect LDK's business. If they do pass then I think we could see LDK ramp up their expansion plans even further, if that is even possible that is. I mean they are already going to double their capacity in the next year, of which most is already sold out with signed long term contracts with prepayments and take or pay arrangements. Thus any extra expansion would just be a cherry on top.

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