SunEdison (SUNEQ) - OTCPK - Limited
  • Nov. 23, 2015, 9:19 AM
    | Nov. 23, 2015, 9:19 AM
  • Nov. 23, 2015, 8:08 AM
    • SunEdison (NYSE:SUNE) chairman Manny Hernandez has been promoted to the role of executive chairman, under which he'll work with CEO Ahmad Chatila and the rest of the management team to "improve the alignment and effectiveness of [SunEdison's] operating structure, drive operational efficiency and focus on its organic development opportunities."
    • CFO Brian Wuebbels will now also serve as the CEO of TerraForm Power (NASDAQ:TERP) and TerraForm Global (NASDAQ:GLBL). He replaces Carlos Domenech, who is leaving the company.
    • Peter Blackmore is stepping down from SunEdison's board, and will become the chairman of both TERP and GLBL, replacing Chatila. Steven Tesoriere has resigned from the TERP and GLBL boards, but will remain on SunEdison's board.
    • SUNE +2.9% premarket to $2.89. Shares remain down 62% from where they traded prior to SunEdison's Nov. 9 Q3 report.
    • Prior SunEdison coverage
    • Update (10:05AM ET): SunEdison is now up 13.7%.
    | Nov. 23, 2015, 8:08 AM | 51 Comments
  • Nov. 20, 2015, 10:37 AM
    • JPMorgan's Paul Coster: "We think SUNE is still able to escape the ongoing liquidity crisis, but at a high cost owing to M&A over-commitment, reduced cash flow from the YieldCos, increased use of high-cost financing options and the negative impact this has on DevCo revenue-growth and margins relative to our prior expectations." He has downgraded the beleaguered solar/wind project developer to Neutral, and cut his target by $14 to $5.
    • While Coster thinks SunEdison (SUNE -5.4%) can avoid bankruptcy, he argues risks still remain related to the Vivint Solar and Renova deals, along with "the need to execute a pivot to DevCo cash sales at decent margin against the backdrop of distractions." He has cut his annualized shipment and gross margin estimates, and significantly lowered dividend growth rate estimates for the TerraForm Power and TerraForm Global YieldCos.
    • Coster: "We think the stock is somewhat undervalued, the firm’s development and operational assets are high quality, but the situation is complicated, fluid and risky, so we move to the sidelines, deeply disappointed that we did not do so ahead of the 'death-spiral' ... By our calculation, SUNE remains liquid through 2016-2019, positioned to roll over debt in 2020."
    • Shares are lower once more, and now down 63% from where they traded before SunEdison's Nov. 10 Q3 report.
    • Two days ago: Deutsche defends SunEdison after talking with management
    | Nov. 20, 2015, 10:37 AM | 56 Comments
  • Nov. 19, 2015, 9:14 AM
    | Nov. 19, 2015, 9:14 AM | 5 Comments
  • Nov. 18, 2015, 5:44 PM
    | Nov. 18, 2015, 5:44 PM | 5 Comments
  • Nov. 18, 2015, 5:01 PM
    • A source tells Reuters Blackstone's credit arm isn't looking to invest in SunEdison (NYSE:SUNE).
    • Shares have fallen to $2.92 after hours. They rose 7.6% in regular trading thanks to a rumor Blackstone is willing to backstop SunEdison's recourse debt.
    | Nov. 18, 2015, 5:01 PM | 34 Comments
  • Nov. 18, 2015, 2:57 PM
    • SunEdison (NYSE:SUNE) has spiked on a rumor Blackstone is willing to backstop the company's recourse debt (has become a major concern this week).
    • The company's TerraForm Power (TERP -6.3%) YieldCo has pared its losses for the day. TerraForm Global (GLBL -15.5%) remains down sharply.
    • With 87.1M shares (nearly a third of the float) shorted as of Oct. 30, and many shorts possessing big profits, short-covering could be helping out.
    • Earlier: Deutsche defends SunEdison's balance sheet after talking with management
    • Update (5:02PM ET): Reuters reports Blackstone's credit arm isn't looking to invest in SunEdison. Shares have given back their gains in after hours trading.
    | Nov. 18, 2015, 2:57 PM | 46 Comments
  • Nov. 18, 2015, 8:27 AM
    • SunEdison (NYSE:SUNE) doesn't need to raise more equity for its solar/wind project warehouse vehicles, and merely needs to raise project debt for a JPMorgan warehouse, says Deutsche's Vishal Shah (Buy rating) after meeting with management.
    • In a run-down of what he considers the top investor questions amid SunEdison's plunge, Shah attributes SunEdison's Q3 reclassification of $739M in debt from non-recourse to recourse as partly due to the selloff in TerraForm Power shares, and partly due to a prior clerical error.
    • He doesn't think SunEdison can get out of the oft-criticized Vivint Solar (NYSE:VSLR) deal, deemed likely to close in late 2015 or early 2016. The sale of Vivint's operating assets to a third party is viewed as an option.
    • Shah notes SunEdison still has ~$1.35B in cash, with ~$700M held in project companies and earmarked for working capital. "Timing of cash movements and the fact that SUNE gets EPC margin from these projects means that the cash can be utilized for other capital needs."
    • Regarding what management can do to prop up shares, Shah thinks both the Vivint and Invenergy deals need to close, observes SunEdison is looking to solve its margin loan issues by refinancing/repaying debt, and is trying to sell a "large portfolio of operating assets to strategic investors such as Dominion." He expects the stock to rebound as confidence grows in SunEdison's ability to fix liquidity issues.
    • Shares are up fractionally premarket. They fell 33.8% yesterday.
    • Prior SunEdison coverage
    | Nov. 18, 2015, 8:27 AM | 67 Comments
  • Nov. 17, 2015, 1:19 PM
    • SunEdison (NYSE:SUNE) has plunged below $4 as debt/liquidity fears refuse to let up. Today's losses come a day after research firm CreditSights noted the solar/wind project developer had apparently reclassified $739M in debt as recourse debt, thus giving its lenders access to more collateral.
    • The selloff also comes after Vivint Solar (VSLR -3.3%) posted a Q3 beat after the close yesterday afternoon. Vivint, which SunEdison remains committed to acquiring in spite of calls for the company to cancel the deal, reported Q3 bookings of 71MW (+15% Y/Y) and installations of 61MW (+24%).
    • Meanwhile, Q3 13F filings indicate Dan Loeb's Third Point LLC wasn't alone among hedge funds in selling SunEdison shares last quarter. David Einhorn's Greenlight Capital cut its position by 25% to 18.6M shares; Leon Cooperman's Omega Advisors also lowered its stake, and Stephen Mandel's Lone Pine Capital liquidated.
    • Shares are now down 53% since SunEdison's Nov. 10 Q3 report, and 82% YTD. The company's TerraForm Power (TERP -15.7%) YieldCo is also seeing big losses, while its TerraForm Global (GLBL -3.2%) YieldCo is down more moderately.
    • Prior SunEdison coverage
    | Nov. 17, 2015, 1:19 PM | 72 Comments
  • Nov. 17, 2015, 12:47 PM
    | Nov. 17, 2015, 12:47 PM | 8 Comments
  • Nov. 16, 2015, 5:43 PM
    • Top gainers, as of 5.25 p.m.: OCRX +29.5%. NUAN +6.5%. EROS +3.5%. ARWR +2.6%. SUNE +2.0%.
    • Top losers, as of 5.25p.m.: URBN -9.8%. MAR -2.7%. BBD -2.4%. C -2.2%. RF -2.2%.
    | Nov. 16, 2015, 5:43 PM | 6 Comments
  • Nov. 16, 2015, 12:30 PM
    • After getting a Friday respite, beaten-down SunEdison (NYSE:SUNE) is seeing more pain following news Dan Loeb's Third Point LLC unloaded its position in the solar/wind project developer in Q3 (as shown by Third Point's Q3 13F). Third Point owned 12.4M SunEdison shares (~4% stake) at the end of Q2.
    • SunEdison's TerraForm Power (TERP -7.9%) and TerraForm Global (GLBL -1.4%) are also off. UBS' Julien Dumoulin-Smith has downgraded TERP to Neutral and cut his target by $16 to $14. He notes the company didn't reiterate its 2016 dividend/share guidance with last week's Q3 report, and asserts TERP's obligations related to the Vivint and Invenergy deals (though capable of being met) will "stress the balance sheet in a way that we had not envisioned for a YieldCo."
    • Deutsche's Vishal Shah is defending SunEdison once more. He argues liquidity concerns are overblown, given only $3B of SunEdison's $12B debt load consists of recourse loans, and that SunEdison's warehouse facilities act as an alternative to dropping projects into a YieldCo while alternative energy financing markets remain in "disarray."
    • Prior SunEdison coverage
    | Nov. 16, 2015, 12:30 PM | 44 Comments
  • Nov. 12, 2015, 9:17 AM
    | Nov. 12, 2015, 9:17 AM
  • Nov. 12, 2015, 7:56 AM
    • "Simplifying things, we no longer believe investors believe management's forward guidance," says Axiom Capital analyst Gordon Johnson, downgrading SunEdison (NYSE:SUNE) to Sell with $2 price target.
    • The company sold just 41MW of projects at a 9.6% gross margin in Q3, not even close to what management guided to in early October. In addition, Terraform Power (NASDAQ:TERP) said it would provide a "run-down" valuation and assured it did not have to take drops from SUNE or invest in SUNE's warehouses. Well, it provided no analysis around a "rundown" company valuation, and committed another $388M to the Invenergy warehouse (via debt, thus boosting its leverage).
    • "Unless SUNE can find new cheaper sources of funding and/or sell projects at the high-teens margins it claims – the warehouses are NOT cheap, with rates around 6%, & tied to LIBOR – it seems likely fundamentals are set to worsen (i.e., our base case)."
    • SUNE -6.9% to $4.56 premarket
    | Nov. 12, 2015, 7:56 AM | 36 Comments
  • Nov. 11, 2015, 1:46 PM
    • Markets continue to become more risk-averse towards two once-high-flying industries: Solar stocks are adding to the Tuesday losses seen following SunEdison and Canadian Solar's  earnings (TAN -2.5%), and 3D printing stocks are taking another leg lower after dropping yesterday in the wake of ExOne's results/guidance. The Nasdaq and S&P are nearly flat.
    • Solar decliners: SunEdison (SUNE -15.7%), SolarCity (SCTY -3.9%), SunPower (SPWR -3.5%), SolarEdge (SEDG -13.1%), Vivint (VSLR -10.8%), TerraForm Power (TERP -4%), TerraForm Global (GLBL -4.6%), Sunrun (RUN -2.9%), and 8point3 Energy (CAFD -4.4%). SunEdison, SolarCity, SolarEdge, and TerraForm Power have made new 52-week lows.
    • 3D printing decliners: 3D Systems (DDD -6.1%), Stratasys (SSYS -4.7%), ExOne (XONE -5.6%), and Voxeljet (VJET -3.9%). 3D and Stratasys have made new 52-week lows.
    • UBS has cut its SunEdison target by $3 to $6. Among other things, it attributes SunEdison's post-earning nosedive to lower-than-expected margins on retained projects, management's plans to push ahead with the Vivint acquisition, and LAP Holdings' plans to seek at least $150M in damages following SunEdison's cancelled acquisition of the company.
    • RBC (target cut by $4 to $20) has joined the ranks of firms defending SunEdison (previous), arguing its recent decisions to cut project construction guidance, lower spending, and sell a greater portion of its projects to third parties make sense. It sees the company "progressing towards sustainable growth," while cautioning shares will remain volatile in the near-term. SunEdison is down 34% over the last two days.
    | Nov. 11, 2015, 1:46 PM | 26 Comments
  • Nov. 11, 2015, 12:40 PM
    | Nov. 11, 2015, 12:40 PM | 2 Comments
Company Description
SunEdison, Inc. engages in the business of semiconductor and solar technology. It develops, manufactures, and sells silicon wafers and photovoltaic energy solutions. It operates through the Semiconductor Materials, TerraForm Power, Inc. and Solar Energy segments. The Semiconductor Materials... More
Sector: Technology
Industry: Semiconductor - Integrated Circuits
Country: United States