Tuesday, September 11, 2007

LDK up 144%... GRGR Jumps 11.1%

Stocks are off to a fast start today, and LDK Solar has climbed its traditional 3% so far this session. Since we recommended this Chinese solar play some weeks ago, it has skyrocketed off its post-IPO low and gained 144%.


Even if the stock sells off a bit in the coming weeks, this is still a good long-term play I believe. The company just broke ground on a silica-producing plant adjacent to its wafer manufacturing plant on the mainland. And that should keep raw-materials prices low going forward, while competitors scramble to find cheap silica - which is growing increasingly difficult to do.

Let's keep our trailing stop on this position right where it is... Doing so will give us a little more wiggle room should profit-taking knock the stock down before the next leg of a long runup.

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Also today, our GRGR play has rebounded back to our entry price, rising 11.1% in this morning's trading. I really like this company and believe it has long-term potential. But wouldn't put more than 1% of my portfolio into this decidedly micro-cap, and highly speculative, resources play.

Good day,


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