LDK: Growing Capacity during recession.

LDK has been increasing capacity and long term contracts as the global economy has been recessing, meaning that with the assumption that purchasing increases the company will have lower margins and more volume at that time. The P/E ratios have a little story as well, especially when compared with competitors. LDK has stable production and so is underpiced with a 3.8 P/E compared with SOLF at 8.9 and FSLR at 43. Considering net profit margin we can see that LDK competes most closely with FSLR and is much more efficient and profitable than SOLF, meaning that the expected P/E should raise from 3.8 to between 9 and 42, so we should be able to expect a 3x price raise in the extreme long term. A big movement and analyst reevaluation should occur when the 4th quarter and total 2008 results are released. Based on the 3Q results, we can see that <b>net income</b> has been on the rise as the company has been using a reasonable ratio of debt and equity to finance their new assets while getting major orders. Ultimately though, it is important to realize that this is a HOT Topic industry that prices will be more influenced on by overall sentiment in the economy. LDK having such a low P/E makes it more encouraging for price growth compared to the competitors though as it is the main profitable company that is far below a 10 P/E.