Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of China-based solar power generalist LDK Solar
So what: Investors backed off all of the Chinese solar experts today on news that JinkoSolar
Now what: LDK has bounced back to a much less terrifying 5.8% drop as of this writing, helped by the announcement of a $26 million secondary stock offering. The placement fixes a debt covenant that was broken by a $110 million share repurchase program, so it's good news for LDK's long-term financing relationships and general health.
Solar stocks should be on fire these days, what with peak oil concerns and global warming worries boosting alternative energy investments worldwide. But it's a nascent industry with pricing problems and often immature technology still looking for some crucial efficiency breakthroughs. Patient investors could do very well by buying into solar stocks at these levels, but don't expect any miraculous overnight riches.
Interested in more info on LDK Solar? Add it to your watchlist by clicking here.
Fool contributor Anders Bylund holds no position in any of the companies discussed here. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool is investors writing for investors.