LDK .What the heck happened??

Discussion in 'Stocks' started by dylan57, Oct 3, 2007.

  1. dylan57


    Fell 24% today, most of it happening in the last half hour. Looked like good news came out about them getting a contract to supply solar wafers to Taiwan's solartech company.Can anybody fill me in?
  2. harkm


    All the Chinese stocks got creamed today. Look for LDK to go much higher.
  3. harkm


    If you are referring to me I don't have any LDK and have never owned it or shorted it. Personally I can't buy or short anything that hasn't had time to build a trading pattern.

    But, these manias(Chinese Stocks) usually go much, much further than anyone anticipates.
  4. bb3pt


  5. gobar


    i guess bad day for solar stock...

    someone unloaded huge in LDk
  6. NEW YORK, Oct 3 (Reuters) - Stock in Chinese-based solar wafer maker LDK Solar Co (LDK.N: Quote, Profile, Research) fell almost 25 percent on Wednesday after a report that its financial controller had left the company amid poor controls and an inventory discrepancy.

    There was no immediate comment from LDK, which is based in Jiangxi, China, and has offices in Sunnyvale, California.

    In a research note, Piper Jaffray said it had confirmed that LDK's financial controller had recently left the company.

    "We are also aware of the former controller's allegations of poor financial controls and a ... inventory discrepancy.

    "News of the departure may pressure the stock short term," the note said.

    Piper Jaffray said the allegations were made to both the Securities and Exchange Commission and the external auditor KPMG. It said it has spoken to LDK's chief financial officer who assured Piper of its inventory of polysilicon.

    LDK Solar was launched with an initial public offering in June and hit a year-high share price of $76.75 on Sept. 27. On Wednesday its stock closed on the New York Stock down $16.66, or 24.39 percent, at $51.65.

    The company manufactures the wafers used in solar panels.
  7. neke


    Was caught on the wrong side of this precipitous move.
  8. Sorry to hear that; do you think worse is over?
  9. neke


    If the story is as it goes (accounting problems forcing an exit of CFO) I should expect more downside.
  10. Is this story true?

    DJ LDK Solar Says Controller Dismissed For Absenteeism

    NEW YORK (Dow Jones)--LDK Solar Co.'s (LDK) chief financial officer
    Jack Lai told Dow Jones Wednesday that the company's controller was
    dismissed at the end of September after not showing up for work.
    "The controller didn't show up for about eight days. The company
    policy says that if (absence) exceeds three days, it will cause
    automatic dismissal. We dismissed him at the end of September," said
    "It was not a good fit. He lives in Hong Kong and the job is in
    China," said Lai.
    LDK Solar is based in Xinyu City, China.
    Lai declined to provide the name of the controller, who he said
    reported to Qiqiang Yao, assistant president of finance at LDK.
    His comments followed a 24% drop in LDK stock to $51.65 on the New
    York Stock Exchange following a Reuters story earlier Wednesday citing
    a report by Piper Jaffray as saying that the controller alleged the
    company had poor controls and inventory discrepancies. Those comments
    couldn't be confirmed with Piper Jaffray at the time of publication.
    Asked whether there's any truth to those allegations, Lai said, "We
    don't believe so." He said the company will issue a statement later
    Wednesday on the matter.

    -By Yuliya Chernova, Dow Jones Newsletters;
    #10     Oct 3, 2007