I've got to say, these solar wafer firms' reports are like night and day.
Can both of these statements be true?
Yes, I think so. It really boils down to customer mix. LDK's largely fixed-rate, take-or-pay contracts are also key, but the firm's customers wouldn't lock into such serious long-term agreements if they didn't have the staying power to ride out this pukey market.
Take the latest deal. LDK and BP's
Reader responses to my solar stock criticisms seem to suggest that I don't understand the potential growth of this industry. That's way off-base. To the winners will go tremendous spoils -- but to finish first, you must first finish.
Through careful contracting, LDK Solar looks to have secured a place for itself at the winners' table, whatever happens over the next quarter or the year. A lot of other solar pure plays simply will not make it. LDK told us that small players are closing their doors and liquidating inventories at any price -- hence the pressure on folks like JA Solar