Will LDK Solar (NYSE:LDK) Become a Penny Stock?
Modern Energy Roundup - September 17, 2012
No surprises this morning. . .
LDK Solar (NYSE:LDK) has sent a revenue warning and cut its full-year revenue forecast for the second time this year. The company is now expecting Q3 revenue to come in at between $220 million and $260 million. Analysts were expecting more than twice that on the low-end of LDK's estimates with $453.6 million. And to add insult to injury, I overhead an analyst last week saying China solar companies, like LDK, are on a one-way track to penny stock status. Ouch!
I was actually at the Solar Power International Conference last week, where I overheard that analyst, and I'll have some updates on the solar space later in the week.
All in all, the solar industry is exactly where I've been saying it is – maturation mode. Growing pains are really starting to sting, but there are definitely some silver linings, especially for installers. Although some companies falling into the installation category are about to get trounced thanks to a Consumer Reports investigation that'll highlight a handful of shady operations in the solar installation game.
That issue of Consumer Reports is coming shortly, and you can read more about it here. In the meantime, we continue to watch everything unfold from a safe distance, waiting patiently for a bottom sometime next year.