Daqo (DQ) Has $1.9B in Liquidity and a Negative Gross Margin. Which Number Matters More?

Daqo New Energy Corp. (NYSE:DQ) shares finished 6.6% higher at $14.98 on August 20 after the polysilicon producer reported second-quarter results that captured the central tension in its investment case. Daqo has substantial financial resources, but its current selling economics remain unsustainable. Second-quarter revenue increased to $62.7 million from $26.7 million sequentially as polysilicon…