This just in within the hour:
Suntech Power Holdings Shares cut to underweight from neutral at JP Morgan
Target Cut To US$7 From US$46
This is a pretty HUGE price cut for STP. I wouldn't be wanting to be holding their stock at the open tomorrow.
I wonder how this will affect LDK at the open?
Does not make much difference .......they were already downgraded on 10th November and the price is already $10.5 and MS is behind the curve.
November 10, 2008 - Rec-Downgrade story about STP from Deutsche Bank
Deutsche Bank downgraded shares to reflect margin downside risks and the weakening demand outlook. The firm lowered their target to $8.50 from $20
Market will soon be seperating LDK from all other SOlar companies as they will be in different and superior niche !!!
I tend to agree... LDK is perhaps best insulated from many of the external forces which are affecting other players in this sector. The smart money is still with LDK.
Still, I don't like to see any negative news in any part of the solar sector only a couple of days before the LDK earnings report. I am really hoping for a bounce on Monday and Tuesday (buying on the ER blowout rumors).
I first saw the news here:
And then I found it in my Scottrade account news for STP. It's legit.
I'm not sure it will directly affect LDK, however, as Morgan Stanley already make its cut last week to $23 for LDK.
STP and LDK do different things, but this news could still weigh-down the entire solar sector for perhaps one session? We'll see in the morning.