I've just been made aware by a subscriber to my newsletter (have you subscribed yet? Do so, it's free!) that they feel there's something missing in AEI for not having yet given mention to the unfolding story over LDK Solar. My view then, as now, was that everyone else had it pretty much covered. And yet, as the reader correctly said, the LDK story makes for good drama !

So what's going on with LDK Solar?

Basically, it's all to do with an allegation of accounting fraud dating from September of this year, specifically the quantity of high-grade silicon feedstock and it is hitting the stock price bad.

Mr Situ, a former financial controller at LDK, is questioning whether the inventory figures published in LDK's financial statements matched those to its ledgers, alleging a shortcoming of 250 tons. Assuming these are metric tons, at a very conservative estimate, silicon from the  spot market costs $100 per kg, sometimes double that, so we are looking at an inventory shortfall worth at least $25 million. Two days ago, a US law firm launched a Class Action Lawsuit against LDK Solar for failing to disclose that it had significantly less feedstock inventory than it claimed to have.

No question, it's all makes for high drama. Just take a look at the 1 year chart - pretty spectacular volatility, I'm sure you'll agree. No wonder, this stock is being so closely watched . . .