LDK Solar (LDK) shares Jump
Shares of LDK Solar (NYSE:LDK) are trading higher to the tune of 6% Monday morning after the company announced that its board has approved a $110 million stock repurchase plan.
That would be close to 10% of the company’s $1.1 billion market cap.
“We remain confident in our current outlook as well as the long-term prospects for our business,” CEO Xiaofeng Peng said in a statement. “However, we believe our ADSs are currently grossly undervalued. We believe our share buyback program not only represents a good investment for our company, but also demonstrates our commitment to enhance shareholder value.”
Mastery Bottom Line:
We said LDK Solar has a lot of value left in our article from May 24th.
Fundamentals are looking very good, and LDK does indeed look severely undervalued.
LDK trades at a trailing P/E of 2.27, a forward P/E of 2.77, a PEG ratio of 0.21 and a price/sales of 0.35.
Add on the share buyback program, and LDK share growth should be unstoppable.
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