It was certainly an opportune time to sell GT Solar shares. Year-to-date, GT Solar shares have risen more than 32% and just last week were trading at a 52-week high of $8.80.

The minor pain suffered by GT Solar shares on Thursday was reversing early on Friday, too, with GT Solar shares among the most active on the Nasdaq, and showing among the largest pre-market gains.

From a sector-perspective, there could be more secondary offerings from solar companies and the profit-taking that is always common in a sector like solar after a big rally. Solar sentiment tends to swing abruptly, and with share prices having recovered to near-2010 highs for many of the companies, there could be an argument made to act on raising capital sooner rather than later. While the solar commentary right now is that fears of a 2011 slowdown are overdone, visibility is far from a sure thing in this hyper-sensitive sector.

For much of 2010, solar shares were so depressed that a new common share secondary offerings may have been too painful for investors to digest. Trina Solar ( TSL) got what was expected to be a big round of secondary offerings started near the beginning of the year. Yet, once the euro began to tumble and solar shares along with it, the secondary market became a less palatable option for financing, and other solar secondary deals didn't follow.

Solar shares have rallied significantly and some recent rising solar stocks have been rumoured as likely candidates for a secondary, such as Jinko Solar ( JKS).

Mark Bachman, analyst at Auriga Securities, who had been at a buy on Jinko as shares ran from the IPO price of $11 to above $30 this week, took down his rating to a hold this week, and referenced a potential secondary. Timing may be an issue for Jinko, too, as profit-taking after its big run seems to have begun en masse. On Thursday, Jinko shares slid 11% on volume of over 1.5 million shares, dropping below the $25 mark.

The Jinko Solar loss on Thursday was not in line with the performance of the solar sector.

-- Written by Eric Rosenbaum in New York.

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