Tuesday, March 30, 2010

LDK Management Hiding from Investors

LDK Solar (LDK) announced Q4 numbers for the quarter ending Dec 31, 2009. This is three months ago. Top line for the quarter is approximately $304 million. How difficult is it to close the books? Most companies view 2009 in a distant rear view mirror at this point. LDK raised more equity. LDK also sold a 15% interest in the polysilicon plant to a state owned financial institution.

For a high tech energy solution company they ekked out a 9.9% margin and had an absolute loss on the quarter. Q1 guidance promises no significant top line growth.

They continue to be excited by the solar business and that is pretty well all the comment that they provided about their industry and market prospects. The executives have retreated and are hiding in the bunker. They do not want to speak frankly about any of their issues and prospects. This company has been most difficult to understand. Many market participants have made some very dark statements about the way management runs the joint.

LDK continues to not engage the investor. They could use a basic course in investor relations 101.