Suntech Power (STP) Could Decline 50% in Next 50 Days - Raymond James

February 6, 2013 11:17 AM EST
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Price: $0.53 --0%

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Raymond James analyst Pavel Molchanov sees a 50% chance of a 50% sell-off in Suntech Power (NYSE: STP) on the next 50 days.

Molchanov said if the company was a non-Chinese PV manufacturer it would already be bankrupt. Suntech has convertible debt of over $500 million coming due within less than six weeks - March 15.

The analyst outline the possible outcomes that he sees. Outcome #1 (50% probability): Heavily dilutive equity issuance; Outcome #2 (35% probability): Bankruptcy; Outcome #3 (15% probability): Non-dilutive outcome.

For an analyst ratings summary and ratings history on Suntech Power click here. For more ratings news on Suntech Power click here.

Shares of Suntech Power closed at $1.58 yesterday.

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