LDK Solar Shares Jumped: What You Need to Know

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 Chinese solar player LDK Solar (NYS: LDK) are enjoying time in the sun today, rising by as much as 10%, fueled by buyout speculation within the sector.

So what: Bloomberg reports that domestic rival First Solar (NAS: FSLR) has become so cheap recently that it could be a potential acquisition target. This notion is one that fellow Fool Travis Hoium has discussed, even as recently as yesterday.

Now what: Possible suitors could include General Electric (NYS: GE) or Siemens (NYS: SI) , and would be seen as a boon for the solar sector. LDK and other Chinese players use polysilicon, whereas First Solar uses cadmium tellluride in its panels. Other companies like Suntech Power (NYS: STP) and JA Solar (NAS: JASO) are also enjoying gains today. The industry has been ravaged by plummeting prices and rampant competition, so some acquisition activity could help give it a much-needed boost.

Interested in more info on LDK Solar? Add it to your watchlist byclicking here.

At the time thisarticle was published Fool contributorEvan Niuholds no position in any company mentioned.Click hereto see his holdings and a short bio. The Motley Fool owns shares of First Solar.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 has adisclosure policy.

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