LDK Falling Into Solar Woes Group (LDK)

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By Douglas A. McIntyre Updated Published
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solar-panel-picLDK Solar Company Ltd. (NYSE:LDK) shares are being hammered this morning, following yesterday’s announcement that the company expects to report a net loss in the fourth quarter of 2008 and lower revenue for the full year. The company will write down $210 million-$220 million in inventories and, as a result, expects negative gross margins.  Negative gross margins. That is worse than just bad.

The solar sector has been in trouble because of lower energy prices and because many buyers for projects have either had to curtail new spending or because their credit to do new projects has been limited.  The solar sector seems to be getting divided into two groups: the haves with promises, and the have-nots with hope.  You can guess which LDK is looking like.  The stock is off nearly 15%, and is sitting at a new 52-week low.

Paul Ausick
February 19, 2009

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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