JA Solar Holdings Shares Plunged: What You Need to Know

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What: Shares of JA Solar Holdings (Nasdaq: JASO  ) fell more than 12% in early trading before closing down 5%. The world's largest maker of solar cells reported worse than expected second-quarter results.

So what: Last year's $0.18-per-share profit turned into a $0.22-per-share loss. That wouldn't have been so bad save for Wall Street's estimates; analysts had been looking for a $0.195-per-share loss, Bloomberg reported.

Now what: CEO Peng Fang's comments were no less encouraging. In a statement, he said that "market conditions" and "inventory provisions" took a toll on both gross margin and earnings. A Q2 profit warning from LDK Solar (NYSE: LDK  ) , issued this afternoon, lends credence to the concerns. Where do you stand on this stock? Would you buy at these levels? Weigh in using the comments box below.

Interested in more info on JA Solar Holdings?Add it to your watchlist.

Fool contributorTim Beyers is a member of theMotley Fool Rule Breakers stock-picking team. He didn’t own shares in any of the companies mentioned in this article at the time of publication. Check out Tim'sportfolio holdings andFoolish writings, or connect with him on Google+ or Twitter, where he goes by @milehighfool. You can also get his insightsdelivered directly to your RSS reader.

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Read/Post Comments (2) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On August 18, 2011, at 7:25 PM, dsong wrote:

    LDK is absolutely strong buy. China solars have

    beaten to p/e = 1-2. Any bad news could not justify such low price.

    Just look at the LDK lower number, rev 2.7-2.9 bil

    is way above FSLR. LDK is a whole intergrated giant

    it deserves 5 0 dollars/share if its p/e is equal to FSLR.

  • Report this Comment On August 18, 2011, at 11:41 PM, FearTheVIX wrote:

    The P/E's on these are worth the risk, LDK Solar tends to guide low. A 1-2 PE ratio is insane. With LDK's news out, and Q3 guidance most likely very strong, the stock really only has one direction to move. Buy here sell in the 30's.

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JASO $6.06 Down -0.08 -1.30%
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