Stock Trading Made Simple Chinese Solar Company

Our most current pick is LDK Solar (LDK)

Our most current pick is LDK Solar (LDK). Accurate to my stock trading made simple style, this stock pick is fairly straight forward.

I discovered this stock through Scottrade Research Center which mentioned the S&P upgrade that took place with this stock on August 5 2010.

Basically the S&P elevated their earnings per share and one year target from $8 a share to $9 a share.

The biggest change for the solar power horizon may be the quick growth of Chinese corporations. Trina Solar plans a 25% rise in wafer-making capacity this year. Yingli Green Energy is expanding 66%. LDK Solar (LDK) plans a 200% expansion.

China's solar firms have low-cost capital and state credits.

"We believe it is the objective of the central government to help develop national champions in China with the purpose of dominating the manufacturing side of this industry," RBC Capital analyst Bush said.

LDK Solar Co Ltd said it signed a deal to supply 50 megawatt of solar modules for the unit of Italy's biggest utility, Enel SpA (ENEI.MI).

LDK said it will produce 30 MW of modules to Enel.Si S.r.l. in the present quarter, and that it had an option to deliver an additional 20 MW for the fourth quarter.

Investors ranging from banks and mutual funds to families and sports car maker Ferrari have piled into Italy's solar market, Europe's third largest, attracted by a nice incentive system introduced in 2007.

The offer comes just one week after LDK said it won binding agreement from Swiss engineer ABB's (ABBN.VX) Italian unit to supply 13 MW of modules in the third quarter.

Lazard Capital analyst Sanjay Shrestha lifted his outlook for the solar sector. He now forecasts global installations of 12 GW this coming year, up from the previous estimate of 11.5 GW; for 2011, he goes to 14.5 GW, from 13 GW, and for 2012, he now sees 17.5 GW, up from 15.8 GW.

In a research report, he writes that he anticipates greater installation volumes in Germany in 2010, and increased installation volumes in the U.S., Italy, China and Japan through 2012.

For LDK he states, "LDK should benefit from a tight wafer supply environment in 2010 and 2011, with revenue upside from its strategic initiative to grow into the module business and cost benefit from higher internal silicon manufacturing in 2011." He boosts his 2010 EPS estimate for the company to 70 cents, from 65 cents.

Within the video below, I evaluate the stock chart of LDK and the break of the 200 day moving average a week ago on rising volume.

stock trading made simple

by: Michael Scott..

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