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Chinese solar rally looking shaky (LDK, YGE, CSUN, JASO)

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Chinese solar stocks have been taking a beating in the wake of a U.S. probe into dumping , and analysts warn that the pain isn't over yet. Kaufman Brothers analyst Jeffrey Bencik says that the U.S. International Trade Commission's initial conclusion that Chinese solar manufacturers are engaging in unfair trade practices has already impacted the stock of nine key players in the industry. As a group, these manufacturers' stocks dropped an average of 2.7% during the week of December 9. The Chinese solar group was already having a bad year. Bencik says players like China Sunenergy ( CSUN , quote ), JA Solar Holdings ( JASO , quote ), Suntech Power Holdings ( STP , quote ) and Yingli Green Energy ( YGE , quote ) and others dropped an average of 71.9% from their stock price since January 1. There is one company that seems to be defying gravity. LDK Solar Co. ( LDK , quote ) soared 75% since bottoming at $2.63 about a month ago. The stock has lost 56% of its value since January 1, but as Bencik notes, that is a lot better than many of its peers. Bencik is wary of LDK, though. The analyst says sector-wide oversupply and the U.S. investigation make it unlikely that LDK can generate enough cash to keep up with its debts.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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