Shares of LDK Solar sank 22% today. This is a Chinese solar cell manufacturing company. Their price fluctuates a lot. One minute they're hot. Then next they seem to be out of style.Today's movement came as a result of an announcement by Q-Cells corporation that an agreement between the two companies was being terminated. Q-Cells is looking to reclaim a recent payment of $245M from LDK. That's going to leave a mark.
The termination of the agreement speaks to there being a surplus of solar cell supply on the market. That, coupled with the possible repayment by LDK, would make it seem like the company will continue to trend South. But like I mentioned earlier, this one has a tendency to cycle up and down. I am thinking this is a temporary setback.
