Barron's: "Avoid Solar Stocks on 'Junk Rally' Deja Vu" ($STP)

Good analysis quoted in Barron's:

"Raymond James analyst Pavel Molchanov cut First Solar (FSLR) to underperform from market perform today, putting it on par with SunPower (SPWR), Suntech Power Holdings (STP) and Trina Solar Limited (TSL).

'This is practically a carbon copy of what happened one year ago. [...] It is uncanny how closely the current situation resembles that one – a surge of macroeconomic optimism, a few positive industry data points, and the stocks’ high beta (along with a short-squeeze) takes care of the rest – a classic recipe for an irrationally exuberant 'junk rally.''"

Suntech bonds have rallied a bit to 56 (a 422% YTM). The gap between bond market and equity market expectations is still gigantic: $330 million market cap vs the convertible noteholders expecting to lose $253 million - a gap of $583 million.