Nov. 21, 2014, 10:28 AM
- The EPA will abandon its proposed rule setting renewable fuel targets for 2014, with an announcement to come today, according to a Bloomberg report.
- Ethanol stocks: PEIX, GPRE, GEVO, MEOH, SZYM, REX, CDTI, REGI, FF, AMRS, ANDE, FUE
- Related refining stocks: VLO, HFC, MPC, TSO, WNR, ALJ, PSX, PBF, DK, NTI, ALDW
- Related coal stocks: BTU, WLT, CNX, ACI, ANR, YZC, ARLP, AHGP, NRP, PVR, PVG, PVA, OXF, CLD, WLB, SCOK, KOL
- Related solar stocks: JASO, SPWR, TSL, FSLR, CSIQ, YGE, EMKR, SOL, JKS, CSUN, SCTY, RGSE, SUNE, HSOL, DQ, OTCPK:DSTI, ASTI, OTCQB:SPIR, OTCQB:SOPW
- ETFs: XLE, ERX, VDE, OIH, ERY, DIG, DUG, IYE, FENY, PXJ, RYE, FXN, DDG, FUE, KOL, TAN
Nov. 19, 2014, 9:34 AM
- Deutsche has hiked its SunEdison (SUNE +2%) target to a Street high of $40 in the wake of the First Wind deal. BofA/Merrill and Cowen's targets have respectively been hiked to $32 and $33.
- "We do not really view this as a shift in business model, as the company's major objective still remains to acquire and develop cash flow-producing energy assets," Canaccord remarked yesterday. "This transaction is fully aligned with our positive investment thesis that the companies will accelerate organic and inorganic opportunities beyond investor expectations."
- Morgan Stanley: "Management is using its valuable currency to roll-up the fragmented development industry, and driving [distribution per share] growth significantly ahead of expectations ... As part of the transaction, SUNE successfully secured $1.5Bn of non-recourse capital to fund new development projects, which provides more comfort around sources of financing for development projects."
Nov. 19, 2014, 9:14 AM
Nov. 18, 2014, 12:49 PM
Nov. 18, 2014, 11:36 AM
- Under pressure for much of last week, solar stocks are rallying (TAN +4.3%) after SunEdison (SUNE +23.5%) and its TerraForm Power (TERP +29.1%) YieldCo announced they're buying leading wind project developer First Wind for up to $2.4B, and JA Solar (JASO +4%) beat Q3 estimates and upped its full-year cell/module shipment guidance to 3.1GW-3.2GW from 2.9GW-3.1GW.
- Gainers: SCTY +3.9%. SOL +4.5%. TSL +3.7%. YGE +2.7%. JKS +3.4%. HSOL +2.8%. ASTI +6%. DQ +3.2%. RGSE +2.6%.
- SunEdison CEO Ahmad Chatila declares the First Wind deal will double his company's addressable market. Cowen thinks SunEdison "can leverage First Wind’s platform to push into international markets for wind given the potential expiration of the production tax credit for U.S. wind projects."
- Along with its results/guidance, JA announced a $90M buyback; it's good for repurchasing 23% of shares at current levels, if fully used. JA's Q3 gross margin was 15%, -20 bps Q/Q but +370 bps Y/Y. Cell/module shipments rose 15.2% Q/Q and 57% Y/Y to 500.2MW.
Nov. 18, 2014, 9:13 AM
Nov. 17, 2014, 5:45 PM
- SunEdison (NYSE:SUNE) and its TerraForm Power (NASDAQ:TERP) YieldCo are acquiring First Wind, a top U.S. wind project developer, for up to $2.4B - $1.9B up-front and up to $510M in earn-outs.
- SunEdison is paying up to $1.5B ($1B up-front) to acquire First Wind, and TerraForm $862M to acquire its operating portfolio. SunEdison will issue a $340M seller note, as well as "put in place a $1.5 billion non-recourse warehouse financing facility, for projects expected to be dropped down into TerraForm." The deal is expected to close in Q1 2015.
- The purchase provides SunEdison over 1.6GW of pipeline and backlog projects, and leads it to boost 2015 project installation guidance by 500MW to 2.1GW-2.3GW. The deal also includes 6.4GW in additional project development opportunities.
- TerraForm is obtaining 521MW in wind generation assets, and adding 1.6GW to its "list of call right projects scheduled for drop down in 2016-2017." Its 2015 dividend guidance has been hiked to $1.30/share.
- SUNE +5.8% AH.
Nov. 13, 2014, 1:58 PM
- Solar stocks can't catch a break this week. Down on Tuesday following Vivnt Solar's weak results and guidance, and down yesterday in the wake of Canadian Solar's numbers, they're off today after SunPower provided light 2015 guidance.
- Notable decliners: FSLR -4.3%. SUNE -5%. CSIQ -6.9%. JKS -5%. SOL -4.7%. JASO -3.2%. VSLR -3.7%. SOL -4.7%. CSUN -7.9%.
- Chinese polysilicon maker Daqo (DQ -10.1%), which posted mixed Q3 results this morning, is selling off after opening higher.
- Is a lot of bad news priced in? The Guggenheim Solar ETF (TAN -1.6%) is now down 33% from a March high of $51.07, and not far from a 52-week low of $32.23.
Nov. 5, 2014, 5:14 PM
- SunEdison (NYSE:SUNE) still expects to complete 1GW-1.15GW of systems in 2014, and to obtain pricing of $2.50-$3.00/watt. But retained systems guidance has been hiked to 740MW-850MW from 710MW-830MW, and revenue recognition guidance lowered to 260MW-300MW from 290MW-320MW.
- Revenue was recognized on 72.5MW of solar systems in Q3, in-line with guidance of 70MW-80MW. Revenue was retained for 251MW of systems, above guidance of 200MW-230MW.
- The company expects to recognize revenue on 84MW-124MW of systems in Q4, and to retain 251MW-361MW.
- Between them, SunEdison's internal solar ops and its TerraForm Power YieldCo had Q3 revenue of $349.7M, -27% Y/Y. SunEdison Semi's revenue fell 8% Y/Y to $213.2M.
- Gross margin rose to 15.2% from 4.6% in Q2 and 9.5% a year ago. Due to a heady solar construction pace, free cash flow was -$596.7M.
- The solar project pipeline rose by 264MW Q/Q to 4.5GW. 610MW was under construction at the end of Q3, up from 475MW at the end of Q2 and 558MW a year earlier.
- SUNE -1.5% AH. Q3 results, PR
Nov. 5, 2014, 4:59 PM
Oct. 28, 2014, 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.
Oct. 20, 2014, 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.
Oct. 17, 2014, 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.
Oct. 17, 2014, 9:20 AM
Oct. 17, 2014, 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.
Oct. 16, 2014, 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.
SUNE vs. ETF Alternatives
SunEdison Inc is adeveloper and seller of photovoltaic energy solutions, an owner and operator of clean power generation assets. The Company is also engaged in the development, manufacture and sale of silicon wafers to the semiconductor industry.
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