Welcome aboard. I cannot stress enough how wonderful a play this is.
Just look at the financials i provide above. This earnings release will replace 4th quarter 2009 loss. So, after tomorrow, we will have the following as our last 4 EPS quarters used to calculate our price to earnings ratio...
Q4 2010: Lets be conservative and say they come in at $1.00 EPS
Q3 2010: .72
Q2 2010: .36
Q1 2010: .06
So, not only can you clearly see the growth, but they will come in full year 2010 with about $2.14 EPS. That gives LDK a PE ratio of 5.6 !!!!!! A company growing this fast with a 5.6 PE ratio! Are you kidding me!
Now, lets look forward. Lets say they average EPS of 1.25 every quarter for 2011, which IMO is conservative. That will give LDK EPS of $5.00 for 2011!
Companies growing this fast command higher price to earnings ratios because investors are paying a premium for FUTURE earnings. A PE of 20 to 30 is the norm for companies growing 20% Year over year. Using a PE of 25 and earnings of $5.00 - you get your share price of $125 a share.
The math is right in front of everyone! First solar is already trading at a premium over its peers simply and only because it is an American company.
People will open up their eyes and flood to LDK soon enough, and it will be valued equally as its american peers, just like chinese search engine BIDU has done with its peer GOOG (Google once traded at a large premium to BIDU for the same reason - one is chinese and one is american - but americans wised up over time).
I have been investing since 1997, and i have never seen an opportunity like this before. Ever.
