LDK Solar (LDK) Keeps Signing Deals Left and Right

LDK Solar (LDK) is putting the screws to the shorts who have put the stock in purgatory for months on end, with another series of contract announcements. Not huge wafer deals, but the timing is impeccable as solar stocks are in the midst of a good run.

• Chinese solar wafer maker LDK Solar Co. Ltd. said Friday it signed two wafer supply agreements and one polysilicon sourcing deal.
• The first wafer supply agreement is with Greek solar cell producer Silcio SA and calls for the delivery of 50 megawatts of silicon wafers over the next six years. The second is with Arise Corp. of Canada for 33 megawatts of silicon wafers. It is a "take or pay" contract, LDK Solar said, with delivery set through 2011.
• LDK Solar also secured a polysilicon sourcing agreement for 1,450 metric tons (1,599 tons) with shipments scheduled through 2011.

I took this position up to 3.5% of the fund yesterday on it's breakout [Bookkeeping: 2 Quick Transactions], and continue to believe fair value is north of $40. As long as the overall stock market continues to hold up, I will hold these shares and see if we can get to $40 before lightening up. When LDK Solar runs, it really runs...

I am taking a bit off the table in Trina Solar (TSL) as the stock is up 5% in sympathy and it's a major overweight position that just breached 6% of the fund's holdings with today's gains, so I am going to take some profits off the table...

Long both names in fund and personal account