Filed under: Major movement, Technical Analysis, Stocks to Buy

Prior to LDK Solar (NASDAQ: LDK)’s earnings report, I told investors to stay away from the stock because I thought it was highly susceptible to a momentum stock breakdown. Although I made one factual error in the post (I said there was a 12:1 long/short ratio while the real number is around 5:1 because of the CEO’s restricted shares), this call turned out to be spot-on and the stock got hammered after several company statements and warnings during the conference call.

But I think now could be an interesting time to become involved in LDK for a short-term trade.

First off, the stock is again-lagging other solar stocks on the market. For example, Solarfun Power (NASDAQ: SOLF) is up 35% in the last five days and First Solar (NASDAQ: FSLR) is up 12%. Comparably, LDK is down about 30% since the day the company reported earnings. Considering this, I think the stock is ripe for a bounce-back trade.

Continue reading Now is the time to play LDK Solar

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This entry was posted on Wednesday, December 26th, 2007 at 3:15 pm and is filed under Stocks Money News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.