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. Invest accordingly. 52-Week Range: 71 cents to $2.36 Book Value: -$3.05 LDK Revenue Quarterly data by YCharts
At the time of publication the author held no positions in any of the stocks mentioned. Follow @RobertWeinstein This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.