The only thing that makes sense to me is that Goldman and it's buddies are trying to show the Chinese solar companies what happens when you don't agree to play with them. The news flow is spun in a negative way (i.e....the whole Italy thing is a great example) while good news is totally ignored. Not even ignored, it is punished!
If the Wall St banks could make a lot of money somehow on financing these Chinese solars they would be 4x the levels they are at now.
A huge part of today's stock market is whether or not Goldman, the hedge funds and other big money is on your side. They sponsor certain favorite stocks (netflix, salesforce, chipotle, etc) and then drive them to dizzying heights.
Meanwhile profitable companies in an exploding industry get sold off after a spectacular earnings report while trading at 6x earnings.
I think people including myself are very frustrated because we feel this company is completely undervalued + being unfairly treated by the market.
Since you among many others don't trust Chinese companies, I would like to add something about our own dearly beloved U.S. corporations and our society:
Enron, WorldCom, Tyco and the auditors who didn't do their job + our buddy Madoff. What about our biased manipulative media? What about the disgusting greed we've just experienced? What about our gigantic public debt? Health care? Education? The U.S. is in my opinion not a very awesome country right now. China is not that awesome either. Heavily polluted + lack of human rights. I'm just saying that you may want to take a good look at our own country first before judging others.
Future growth will be in China - not here! An investor should be where growth is. There will also be a slow transition where the U.S. will gradually lose economic and political influence. China, India, Brazil and others are ready to join the table.
It's got to be bigger than GS. I suspect that whatever is happening is known about at high levels in China and the US. It can hardly be otherwise... for one thing, nobody wants a short term bubble. The Global Economy needs consistancy, and as we see things falling apart on a nearly daily basis, I guess they're just being very careful.
I enjoyed all of the commentary. Good discussion. Thanks.
Why isn't LDK $50 per share (5 Yr. Growth Rate (25%) x Projected 2011 Earnings ($2.34)????
Answer: Technical formation is not yet indicating "Must Buy".
It is however, indicating "All Clear, Can Buy".
I suspect Improving Fundamentals for the Industry, spurred on by events in Japan, will stimulate the thinking of some fund managers - thereby improving the technical picture of companies like LDK.
I think we're just a little early - and that's a good thing.
Early bird......and all that.
I agree, this is pure market maker move, Remember, the market makers (MM)control the direction of the market. This morning, the MM
wanted in ldk, so they took out the stop losses (suckers), took there shares, also got the shorts to jump in( suckers), the hedge funds also got a chance to buy in at a lower price. Next week they will gap it up to $13, the shorts will fry, the longs will buy in at a higher price, just they wanted to do. hold on to your share don't let them manipulate you.
It sure looks like it.
However, I think the real reason is that big money is pretty ignorant and currently, risk adversity seems to be the rule of the day. It's easier for big money to buy "safe" companies that pay decent dividends.
Companies with high debt such as LDK + no dividend is not really what they are looking for these days, I suppose.
LDK is a great opportunity but Wall Street is very ignorant and risk adverse right now.
You are partially correct about Wall St. What is true is that the big Wall St. money controls the direction of any stock, even a sector. Muscle controls, regardless of reason, and you can't fight it.
Recently Wall St. has been sour on solar, so the entire sector has suffered regardless of the company. The solar sector is a hot and cold sector with Wall St. The Wall St. sheep merely follow the flock, incapable of independent thinking or action. Wall St. is operated by programmed computers that are triggered by programmed factors, not by thinking humans.
If a person subscribes to your line of thinking regarding how Wall St. views Chinese solar companies, there is one point on which I would have to agree with Wall St. That is that the Chinese solar companies listed on the U.S. exchanges are nothing more than holding companies, listed on U.S. exchanges only to benefit from the huge amount of money invested in the U.S. Their holding companies are suspect, as the U.S. regulators cannot examine the actual books of the Chinese companies, which are subject only to the exchange regulations. These can be two entirely different pictures. It is not difficult for a foreign holding company to merely comply with stock exchange regulations. Consequently, I believe Wall St. may question the credibility of these holding companies.
For what it may be worth, I personally will not invest in any Chinese stocks, in part for the reasons previously stated. I also have no confidence in the quality of any products produced in China, of which numerous have previously had problems in the U.S. China does not have the regulatory oversight that exists in the U.S. They just produce and ship, crank out as much as they can as profitable as possible. The new China is a pseudo-capitalistic economy, with the strong-armed government permitting a form of capitalism because it is good for the working people and even better for the Chinese government. It is a tremendous revenue producer for the Chinese government.
There is another major reason I will not invest in a Chinese stock. That is because the Chinese government is dictatorial, capable of doing whatever they desire whenever they desire. They subsidize companies to make them competitive, but they can also take total control of any company they desire for any or no reason, including shutting it down. One thing that has not changed in China is the strong-armed control of the government.
Most solar stocks are Chinese companies for very apparent reasons. However, there are a couple very good U.S. solar companies I am aware of, FSLR (high-priced), and SOLR (a terrific value stock/company). I will invest in only the U.S. companies, and do own SOLR stock, which is up over 60% the last 52 weeks, holding-up well.
Dam you're an idjut...
Why don't you spend some time to see the Wall St firms that brought these companies public and then proceeded to raise nearly every penny of capital for them to expand?
How would that be "not playing with Wall St"? WALL ST MADE THESE COMPANIES!
Wall Street didn't make these companies you arrogant hedge fund stoodge. They all listed here during more reasonable times with reasonable valuation models. Wall Street gives itself too much credit. Can't wait for the FEDS to start throwing you scumbags in jail. It's coming.