Thursday, January 17, 2013

More Barron's on Solar Stocks ($STP)

The latest warning. When the solar junk rally recedes, they will be able to point to some good calls:

"[N]o love, however, for Suntech Power or LDK Solar – Suntech because of its 'high costs and slipping market shar[e],' LDK for its 'very high debt, uncompetitive cost structure and vanishing book value.'"
If you look at the comments on these articles, you'll notice that the retail morons are all long the solar stocks. Supports the hypothesis that they are currently pumped up by dumb money. (And who else would buy shares in companies with bonds yielding 600 percent?)

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