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 solar-power wafer and module producer LDK Solar (NYS: LDK) are shining bright today, powering up to a 15.4% intraday gain on above-average volume.
So what: LDK's surge rides on two announcements: Most obviously, there's a fresh 20-megawatt project with Chinese electric utility Datang International that's set to earn revenue as soon as this month. But LDK has also been expanding its exposure to the American market, so it caught a ride today when the government approved a massive 550-megawatt solar installation in Southern California.
Now what: The California project leans primarily on panels from local provider First Solar (NAS: FSLR) , but the nearly $2 billion installation might need secondary sources, too. As a maker of both installable solar modules and basic materials, LDK looks better positioned for a supply glut in the industry than one-trick ponies such as JA Solar (NAS: JASO) or ReneSola (NYS: SOL) . But the entire industry is trading at rock-bottom levels, and it seems hard to go wrong with any of these stocks as long as you intend to hold those shares for at least a few years.
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At the time thisarticle was published Fool contributorAnders Bylundholds no position in any of the companies discussed here.Motley Fool newsletter serviceshave recommended buying shares of First Solar. Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool isinvestors writing for investors.
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