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- SunEdison has announced it filed a confidential prospectus to list a second yield co.
- This time, the new yield co will be aimed at Africa and Asia.
- This is a huge sign of confidence in the solar market future, and for SunEdison.
- The TerraForm Power IPO is immensely helpful for SunEdison in many ways.
- TerraForm Power effectively enables SunEdison to sell its projects at 60% margin.
- At $2B a year potential value add, SunEdison's market cap may multiply by 3x in the next 12 months.
- SunEdison's project backlog is growing at a robust pace on the back of projects in different countries.
- SunEdison is making smart moves by retaining projects on the balance sheet in order to increase shareholder value.
- SunEdison is tapping more markets with acquisitions and joint ventures.
- SunEdison's earnings are expected to grow at a terrific rate in the next two years.
- SunEdison is making a number of impressive moves to grow the business, a fact that reflects in its recent results.
- SunEdison's decision to retain more projects should help the company create long-term value for shareholders.
- Prospects in the solar industry are also quite bright, which means that SunEdison has strong tailwinds behind it.
- A strong pipeline and solid earnings growth projections make SunEdison a long-term buy.
- SunEdison's new spin-off, TerraForm, offers an interesting case study for the industry.
- This new business model makes perfect sense to solar companies.
- Modeling the effect of such spin-offs by other solar companies reveals serious valuation distortions.
SunEdison: Should A Long-Term Investor Consider This Company?
- SunEdison has executed well on its project pipeline and is rapidly reducing the gap with First Solar in project deployments.
- The cash flow and valuation impact of SunEdision's semiconductor will be unclear until the spin off is completed.
- To value SunEdison accurately, management needs to model and share the risks of the retained value with its investors.
- Strong execution, diversified pipeline of projects and semiconductor spin off.
- One of the world's largest solar installers and developers with great expertise and long experience.
- More value addition for investors as company retains high-yielding solar assets and raising cheap capital through yieldco.
This Solar Stock's Recent Drop Is A Buying Opportunity
- SunEdison has seen come weakness of late after it dropped a project in India due to feasibility issues.
- But SunEdison’s long-term prospects look really strong due to its robust pipeline.
- SunEdison has also collected strong financial backing to execute its projects.
- Impressive revenue growth indicates that SunEdison is on the right track.
- The continuously increasing demand should improve SunEdison's margins.
- The spin-off of the semiconductor business and strong balance sheet will prove to be important in the highly competitive solar market.
- The deal with Deutsche Bank should help the company to gain market share in the United Kingdom.
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Tue, Oct. 28, 10:23 AM
- SunEdison (SUNE +3.4%) has signed an MOU with the Indian desert state of Rajasthan to "establish 5 GWs of capacity in the form of multiple Mega Solar Projects, with the expected capacity of each Mega Solar project 500 megawatts or more."
- Rajasthan "aspires to create 25GW of solar capacity in the state in the next few years." Too ambitious? The national government is only aiming for 15GW by 2019. India's total installed solar capacity is currently at 2.7GW.
- Separately, First Solar (FSLR +3.1%) and Acme Solar (a firm backed by a French utility) are set to win licenses to build major solar plants in Southern India, after offering the lowest electricity prices in an auction. SunEdison and two other firms are also set to win projects.
- SunEdison and First Solar are among the many solar names rallying today.
Mon, Oct. 20, 11:35 AM
- David Einhorn has sung SunEdison's (NYSE:SUNE) praises at the Robin Hood Investors Conference, and has also talked up its TerraForm Power (NASDAQ:TERP) YieldCo.
- Einhorn's Greenlight Capital originally bought into SunEdison in Q4 2013. It owned 21.2M shares of the solar project developer at the end of Q2.
Fri, Oct. 17, 1:31 PM
- "We see SunEdison as a solid play on U.S. and global solar growth and believe the company has done all of the right things to unlock shareholder value," writes Cowen's Jeffrey Osborne, upgrading SunEdison (NYSE:SUNE) to Outperform and hiking his target by $4 to $24.
- Osborne also likes SunEdison's heavy reliance on U.S. solar projects, which limits the forex damage done by a strong dollar.
- Shares are up strongly following the upgrade, and news SunEdison is thinking of building a $2B Chinese polysilicon plant with a local partner.
Fri, Oct. 17, 9:20 AM
Fri, Oct. 17, 5:06 AM
- SunEdison (NYSE:SUNE) is in talks with a company from China about investing up to $2B to build a low-cost polysilicon factory in the country, CEO Ahmad Chatila has told Bloomberg.
- The facility will have a capacity of 20,000-30,000 metric tons a year and will enable SunEdison to produce the polysilicon, which is used in solar panels, for $6 a kilogram, or $2 less than the nearest rival.
- SunEdison already has has polysilicon capacity of 17,000 tons and is also considering a factory in Saudi Arabia.
- In addition, Chatila wants SunEdison to extend beyond manufacturing and move into building and operating power plants.
- Yesterday, SunEdison said it has formed a solar joint venture with Chinese investment firm JIC Capital.
Thu, Oct. 16, 10:42 AM
- A JV between SunEdison (SUNE +1.4%) and Chinese investment firm JIC Capital aims to "develop, construct and own up to 1 GW" of Chinese solar projects over the next 3 years.
- The JV is "currently exploring and evaluating several large-scale projects and expects to start construction in early 2015." SunEdison's Renewable Operations Center (now manages over 3GW of solar capacity) will handle the operation and maintenance of the projects.
- In June, SunEdison announced a deal with Chinese solar wafer maker Huantai to build local solar projects.
Wed, Oct. 15, 2:17 PM
- The ten companies in the Russell 1000 in which hedge funds hold the biggest stakes are down an average of 16% since that index hit an all-time high on September 18, according to Bloomberg. This stands against a slide in the index of just 7%.
- “The reactive selling is institutional,” says a portfolio manager. “Now redemptions are coming in, and that’s putting more pressure on the market. All these things are in the mix for perhaps exacerbating the move.”
- The list: Burger King Worldwide (BKW -4.5%), CVR Energy (CVI -2.4%), Spectrum Brands Holdings (SPB -3.3%), Ally Financial (ALLY -2.6%), Zynga (ZNGA -1.3%), NorthStar Realty (NRF -1.9%), Seventy Seven Energy (SSE -6.6%), Platform Specialty Products (PAH -1.4%), and SunEdison (SUNE -0.6%).
Tue, Oct. 14, 11:08 AM
- Hungry as ever to expand its solar project portfolio, SunEdison (SUNE +0.1%) has doubled the size of its credit facility (created in February) to $800M.
- SunEdison had $5.4B in debt at the end of Q2, and $1.2B in cash. Many of the projects financed by the new capital could ultimately go to its TerraForm Power (TERP -3.1%) YieldCo.
- Separately, SunEdison says it has developed a new solar module manufacturing approach that it claims can (by reducing the amount of unused space) increase power output by 15%, and thereby lower system costs by 8%. It's expected to enter mass-production in 2H15. The company claimed a polysilicon breakthrough two weeks ago.
Mon, Oct. 13, 4:09 PM
- Solar and fuel cell companies are among the biggest decliners on a day that saw NYMEX crude oil prices fall below $85/barrel (they're now slightly above), and Reuters report the Saudi government "will accept oil prices below $90 per barrel, and perhaps down to $80, for as long as a year or two." The Nasdaq as a whole finished down 1.4%.
- Of note: Oil only accounts for 1% of U.S. electricity production, and also a small percentage of electricity output in many other large economies.
- Solar decliners: SUNE -10.7%. FSLR -5.9%. SCTY -9.7%. DQ -9.4%. CSIQ -8.1%.JASO -7.7%. SOL -8.6%. TERP -7.5%. JKS -6.7%. CSUN -5.9%. VSLR -6.3%. TSL -8.7%. YGE -5%.
- Fuel cell decliners: FCEL -6%. PLUG -4.7%. BLDP -7.4%.
- Solar ETFs: KWT, TAN
Wed, Oct. 8, 11:50 AM
- SunEdison (SUNE -2.8%) and its TerraForm Power (TERP +1.4%) YieldCo are buying a 30MW solar project portfolio from Hudson Energy Solar.
- 25.5MW worth of projects currently in operation will go to TerraForm, while a 4.5MW project pipeline will go to SunEdison proper.
- TerraForm is paying $35M up-front, after factoring the assumption of $21M in debt. The deal is expected to provide TerraForm with $5.1M in cash available for distribution in 2015.
Wed, Oct. 1, 1:11 PM
- A JV between SunEdison's (SUNE -2%) semiconductor materials unit (SEMI +0.3%) unit and Samsung has begun producing polysilicon using technology SunEdison promises will deliver "the lowest cost in the world."
- The technology, known as HP-FBR, is said to "produces high purity polysilicon 10 times more efficiently and with 90% less energy used than non-FBR technologies."
- SunEdison predicts it will allow the cost of the polysilicon needed for panel production to fall to "less than $0.05 per watt peak by 2016," and will let the company "deliver a 400-watt peak solar panel at a cost of $0.40 per watt peak by 2016."
- Separately, SunEdison has announced the closing of $50M in debt financing for a 23.8MW Jordanian solar project expected to see construction start in Q4. The deal follows SunEdison's confidential IPO filing for an Asian/African solar project YieldCo.
Mon, Sep. 29, 11:05 AM
- 2 1/2 months after doing a successful IPO for its TerraForm Power solar project YieldCo (owns assets in the U.S., U.K., Canada, and Chile), SunEdison (SUNE +4.4%) says it has confidentially filed an S-1 for "a yieldco vehicle focused on contracted clean power generation assets in attractive, high growth, emerging markets, primarily in Asia (excluding Japan) and Africa."
- SunEdison hasn't yet disclosed the size of the YieldCo's portfolio, or how much it's looking to raise. Investors are signaling their approval of the move.
Wed, Sep. 24, 12:25 PM
Wed, Sep. 24, 11:46 AM
- SunEdison (SUNE +9.6%) is the latest name to pop on unconfirmed M&A rumors. Some of the talk has mentioned GE as a potential buyer.
- Volume is already nearly 2x a daily average of 8.4M. SunEdison's TerraForm Power (TERP +3.1%) solar YieldCo is also having a good day.
- 64.7M SunEdison shares (26% of the float) were shorted as of Aug. 29.
Thu, Sep. 18, 11:39 AM
- Alejandro Hernandez, formerly a Goldman i-banker, has been named TerraForm Power's (TERP +2.3%) new CFO. He replaces Sanjeev Kumar, who is returning to former employer EverStream Energy Capital.
- Separately, Macquarie has launched coverage on TerraForm with an Outperform and $37 target. Shares of the SunEdison (SUNE +2.4%) solar YieldCo are back above $30 - they're up 23% from July's $25 IPO price, but remain below an opening trade of $33.26.
Wed, Sep. 10, 8:33 AM
- SunEdison (NYSE:SUNE) +3.1% premarket after Google agrees to provide $145M in equity financing for the Regulus solar power plant to be built in Kern County, Calif.
- The Regulus plant will begin operations later this year, and will supply power to Southern California Edison through a 20-year power purchase agreement.
- The 737-acre 82 MW DC solar PV power plant is in construction, and will be comprised of ~248K SUNE mono-crystalline solar PV modules; once operational, Regulus is expected to produce enough energy to power 10K-plus homes.
- GOOG has signed agreements to fund more than $1.5B in renewable energy investments across three continents.
SUNE vs. ETF Alternatives
SunEdison Inc is a semiconductor and solar technology company. It provides technology solutions to corporations, utilities, governments and chip manufacturers to transform lives around the world.
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