2-Star Stocks Poised to Plunge: LDK Solar?

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Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, solar wafer maker LDK Solar (NYS: LDK) has received a distressing two-star ranking.

With that in mind, let's take a closer look at LDK's business and see what CAPS investors are saying about the stock right now.

LDKfacts

Headquarters (founded)Xinyu City, China (2005)
Market Cap$235.0 million
IndustrySemiconductors
Trailing-12-Month Revenue$1.6 billion
ManagementFounder/Chairman/CEO Xiaofeng Peng
President/COO Xingxue Tong
Return on Equity (average, past 3 years)(25.9%)
Cash/Debt$135.7 million / $3.4 billion
CompetitorsMEMC Electronic Materials
Renewable Energy
Yingli Green Energy

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 11% of the 1,426 members who have rated LDK believe the stock will underperform the S&P 500 going forward.

Just yesterday, one of those Fools, All-Star MajorBob04, tapped LDK as a particularly untimely opportunity: "The solar energy market is collapsing as Natural Gas becomes plentiful and the price of oil remains relatively low. Eventually solar will be useful, but right now the economics aren't there."

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At the time this article was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Try any of our Foolish newsletter services free for 30 days.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 Fool's disclosure policy always gets a perfect score.

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