Nomura Securities Maintains a 'Neutral' on LDK Solar (LDK); Thoughts on Stock Buyback
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Price: $1.01 --0%
Rating Summary:
2 Buy, 2 Hold, 7 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
2 Buy, 2 Hold, 7 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Nomura Securities maintains a 'Neutral' on LDK Solar (NYSE: LDK).
Nomura analyst, Nitin Kumar, said, "LDK yesterday announced a share buyback plan of up to US$110mn representing 11.1% of total shares at last closing. While the news should result in stock appreciation, we believe the likelihood of LDK actually spending the entire amount on buyback is low. We believe LDK should be looking at cash conservation given: 1) profitability has declined sharply as end-market wafer ASPs fell some 35~40% by end-2Q11F versus peak ASPs in 1Q11; and 2) continued difficult market conditions could delay the IPO of its poly subsidiary, which could limit its cash raising avenues."
For more ratings news on LDK Solar click here and for the rating history of LDK Solar click here.
Shares of LDK Solar closed at $7.14 yesterday.
Nomura analyst, Nitin Kumar, said, "LDK yesterday announced a share buyback plan of up to US$110mn representing 11.1% of total shares at last closing. While the news should result in stock appreciation, we believe the likelihood of LDK actually spending the entire amount on buyback is low. We believe LDK should be looking at cash conservation given: 1) profitability has declined sharply as end-market wafer ASPs fell some 35~40% by end-2Q11F versus peak ASPs in 1Q11; and 2) continued difficult market conditions could delay the IPO of its poly subsidiary, which could limit its cash raising avenues."
For more ratings news on LDK Solar click here and for the rating history of LDK Solar click here.
Shares of LDK Solar closed at $7.14 yesterday.
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