LDK Solar shares jump -- will they move higher?

LDK Solar Co. (NYSE: LDK) American Depository Shares added 9.3% in today's trading. Only two weeks ago, on August 11, LDK reported second quarter results that beat any and all expectations. The shares then jumped from around $33.50 to about $40. Today, LDK shares closed at $50.06, the highest since December.

Two weeks ago, LDK raised its quarterly and 2008 forecast. Today, the Chinese maker of silicon wafers said 2009 deliveries may double. Sales next year will climb to $2.8 billion to $3 billion, the company said. Analysts estimated 2009 revenue of $2.42 billion, according to Bloomberg. LDK also announced that the company's wafer plant reached the milestone of 1.0 GW annualized capacity. For 2009, LDK predicts safer shipments between 1.45 GW to 1.55 GW.

Investors generally are pleased LDK is trying to control its raw material costs by building polysilicon plants. Yet, analyst consensus has been Hold with the average target price currently below the share price. With the recent announcements and current momentum, could we be in for a wave of upgrades, or at least estimate raising?

Something else to point out is the growing short interest. It now stands at 16.44 million, and it would take 11.2 days of average daily volume to cover it. If this goes on, shorts might get spooked.

Many factors in the market now, including soaring oil prices and global warming concerns, have boosted the solar stocks. LDK Solar has regained its favored status recently in this hot sector. Sometimes, that's all that's needed.