LDK Solar Co., Ltd. (NYSE: LDK) shares surged higher after the solar-maker reported better-than-expected second-quarter results in a 6-K filing with the SEC. Revenues surged 89.2% to $441.7 million after total wafer shipments increased 60.8% during the quarter. Meanwhile, gross profit margins ended up at 25.4%, meaning it didn't sacrifice profits for revenues. LDK Solar also upwardly revised its outlook for the year as it retains a bullish sentiment on the industry.

"We experienced substantial revenue growth during the second quarter as our wafer capacity expansion exceeded our expectations," stated Xiaofeng Peng, Chairman and CEO of LDK Solar. "We are pleased with our continued success of executing our growth strategies. In addition to our wafer capacity expansion, tremendous progress has been made to date on the construction of our polysilicon plants and the project remains on schedule."

The Chinese solar maker now expects revenues between $486 million and $496 million on shipments of between 210 megawatts and 220 megawatts of wafers in the third quarter. The company also lifted its full year guidance to between $1.65 and $1.75 billion compared to between $1.08 and $1.18 billion earlier. Meanwhile, analysts expected only $1.16 billion, which is why we saw the dramatic jump in today's trading when shares soared more than 26% briefly.

Despite the dramatic move, LDK Solar remains well below its 52-week highs of $76.75 per share. This is because the primary driver downwards was a reduction in growth estimates for the industry, which forced down PE multiples. Currently, LDK Solar trades at just 26x earnings, which is far below its prior valuations of closer to 50x earnings. This mirrors much of the rest of the industry that has also seen multiple contraction.

In the end, if solar companies like LDK Solar can continue to outperform like they have yesterday, we may see an increase in the multiples that could justify a higher share price on two levels. Earnings per share will be greater and the multiple will grow larger. However, if the rest of the industry shows signs of weakness, then investors have have to count on only one part of this equation to profit.

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Pilgrim's Pride Corporation (NYSE: PPC) shares rose sharply after the company announced that it would stop production at two of its chicken-processing plants in a move to rein in losses. The painful actions are deemed necessary by the company in order to position it to emerge from the down cycle as a much stronger and more efficient competitor.

The news comes after Pilgrim's Pride announced a third-quarter loss of $52.8 million after posting a $62.6 million profit just a year earlier. The results come on the heels of higher feed and commodity costs that are quickly eating into profit margins. Meanwhile, the chicken industry is also facing pricing pressures as a result of over-supply.

Pilgrim's Pride stock is far below its 52-week high of $41 per share on such problems. Oil prices may have subsided in recent days, but it is the feed costs that has many concerned. Meanwhile, there are no signs that chicken prices will recover as consumers purchase less and supply continues to grow.

The hope is that today's job cuts will at least reduce costs in an effort to boost the bottom line. Whether or not this effort will be pay off remains to be seen, but at least it is a step in the right direction, and that's what shareholders were looking for today...

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Bronco Drilling Company (NDAQ: BRNC) shares continued their decline after ISS Governance Services recommended a vote against the proposed merger with Allis-Chalmers Energy. The shareholder advisory service concluded that given the relatively strict sales process, increase in EBITDA estimates for the peer group, and a valuation analysis of the company, shareholders should vote against the proposed transaction.

The announcement by ISS Governance is a welcome message for Third Avenue Management - an activist shareholder that has been fighting the merger since its announcement. The 23.4% shareholder expressed its belief that the offer was undervalued several times in Schedule 13D filings with the SEC and may now have enough support to prevent the merger. Supporters include 12.8% holder Wexford Capital and 6.1% holder Alpine Associates.

Bronco Drilling Company provides contract land drilling and workover services to oil and natural gas exploration and production companies. As of February 29, 2008, the Company owned a fleet of 56 land drilling rigs, of which 45 were marketed and 11 were held in inventory. Bronco also owned a fleet of 59 workover rigs, of which 49 were operating and 10 were in the process of being manufactured. The Company also owned a fleet of 70 trucks used to transport its rigs.

Shares of Bronco Drilling dropped $0.09, or 0.56%, to $15.86 per share.

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