After being beaten half to death by a piece in Barron’s and watching it stock move down by over 25% yesterday, LDK Solar (LDK) says that no one should worry. It’s OK. According to Reuters "a former executive said the solar wafer maker had problems with its silicon inventories."
Today, LDK offered a rebuttal. And, the company sharply increased its estimate for earnings. Based on preliminary management reports, LDK exceeded its original plan and shipped approximately 75 MW of wafers in the third fiscal quarter ended September 30, 2007. As a result, LDK hereby updates its Q307 revenue guidance from $115 to $125 million to $140 to $150 million.
"As we previously indicated, we believe that there is no merit in the allegations made about our inventory accounting practices, our business operations are normal and we continue making shipments to fulfill our customers’ orders," stated Xiaofeng Peng, Chairman and CEO.
After falling from a 52-week high of $76.75. all of the bad news had sent LDK down to $37.50.
The shares are up 15% on the "positive" news.
Douglas A. McIntyre