LDK? good buy or room to fall

[squarepusher]

http://finance.yahoo.com/q/bc?s=LDK&t=6m

this took a big hit in the past few days, based on some information from a former employee claiming inventory disputes. This could either mean 2 things

1) shady company practices
2) disgruntled employee looking for blood



in either case, the price is down from about $73 -> $48 in 2 days ...

does anyone think this can be a good China quick play for a strong recovery?
________
Body Science

[squarepusher]

bump for input on this
________
Harry Bennett

[stenzrob]

square,
China stocks have a mind of their own, and I'm not sure logic applies, but the thing about these allegations is that they create uncertainty. Any stock does not like uncertainty. I tend to be a bit more conservative, usually, and that's why I'm in WFR. WFR is also supplying polysilicon wafers to the solar cell industry, but has lower debt, lower forward PE, more experience, and no troubling questions about governance or financial controls. If LDK encounters any difficulties at all, in wafer supply, bringing production online, etc., the customers will go to WFR.

If you're interested in trading LDK, I don't think you can come up with some fundamentals-based valuation based on production capacity, pricing, growth, yadda yadda, and then call a dip an opportunity. Trading in LDK is going to be emotional/psychological. If you're expecting to make sense of it, or don't feel comfortable trading on a sense of where it's headed regardless of underlying value, then my suggestion is to steer clear of it.

[crazyal65]

LDK has continued to drop until last week, when it recovered a little. I'm watching to see if it sustains or drops further before making a decision on it.