Wednesday, January 5, 2011

LDK Solar's (NYSE:LDK) Liquidity Remains a Concern

With the minority sale of Poly Plant, it isn't clear at this time whether it'll help the liquidity weakness of LDK Solar (NYSE:LDK).

Barclays noted, "It is also unclear if LDK's liquidity situation improves as a result of this transaction. A sale in the stake of the poly plant and subsequent IPO has been widely expected by investors and today's announcement suggests that the company could be looking at a poly plant IPO soon. Investment by credible Chinese institutions also suggests that the poly plant may be on track to achieve operational targets set by management. That said, LDK's liquidity situation still remains a source of concerns."

Barclays maintains an "Equalweight" on LDK Solar, which closed Tuesday at $10.47, dropping $0.21, or 1.97 percent. Barclays has a price target of $12 on them.

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