Europe announced import tariffs of 11.8%
, which the market took as favorable news. LDK,
Yingli Green Energy
either opened higher or traded higher during Thursday's trading session.
It appears LDK sellers took advantage of the pop in share price and sold into the news. LDK closed at $1.40 Thursday, just slightly above its $1.37 low point on the day. Shareholders have not been rewarded for their patience; the stock has fallen 15% in the last year, and the average analyst target price is $1.10.
I can't think of a good reason to buy this stock. However, for investors who don't mind playing the Wall Street "Lotto," LDK can be treated like a stock option.
In LDK's case, you're not losing time premium from an upcoming expiration date, but the negative cash flow that may lead to bankruptcy acts nearly the same. In a nutshell, LDK is in a race against the clock to reverse its losses.
52-Week Range: 71 cents to $2.36
Book Value: -$3.05
LDK Revenue Quarterly
At the time of publication the author held no positions in any of the stocks mentioned.
This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.