After a 5.6 percent decline on Monday and a 25.8 percent crash on Tuesday, shares of Sunedison Inc SUNE are down another 8.0 percent in Wednesday trading following a report by Debtwire that the company is in debtor-in-possession negotiations with creditors.

The market has taken the report as a sign that bankruptcy could be right around the corner for SunEdison, and Axiom analyst Gordon Johnson is squarely in the corner of the bears.

However, despite his Sell rating and a $0.22 price target for SunEdison, Johnson mentions short sellers should be cautious with the volatile stock. In a new report, Johnson mentions five possible bullish catalysts that could blow up a SunEdison short:

1. If a “white knight” buyer steps in to buy out SunEdison, the stock could explode to the upside overnight.

2. If SunEdison begins selling solar projects at 9-10 percent returns, market (and creditor) concerns over the company’s liquidity positions could diminish.

3. If an activist investor steps up and takes a large stake in TerraForm Power Inc TERP, equity markets would likely no longer be…

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