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SunEdison (SUNE)

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  • Feb. 10, 2014, 12:08 PM
    • SunEdison (SUNE -0.2%) is "indefinitely" closing an Merano, Italy polysilicon plant that has been shuttered since Dec. 2011, and "transitioning" small diameter semiconductor crystal production taking place at a St. Peters, MO plant to facilities in South Korean, Taiwan, and Italy. (PR)
    • The actions will lead to 335 job cuts, and $37M in 2013 fixed-asset impairment charges. They follow years of weak polysilicon demand and crashing prices (demand has only recently begun rebounding), and soft near-term chip wafer demand.
    • In December, SunEdison issued a Q4 warning that was blamed in part on weaker-than-expected sales for the company's chip wafer ops, which are set to be spun off in an IPO. The company's Q4 results are due on Feb. 19.
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  • Feb. 5, 2014, 3:11 PM
    • Saudi Arabia, long synonymous with oil, may have its sights set on solar power, as Saudi officials signed an agreement yesterday with SunEdison (SUNE +1%) to explore building a massive solar panel factory in the kingdom.
    • The proposed $6.4B plant would produce enough PV solar modules each year to generate 3 GW of electricity - roughly the output of three nuclear reactors.
    • The deal prompts Credit Suisse to raise its price target on SUNE to $17/share from $14 “to reflect an increased confidence in SunEdison’s ability to successfully execute on their downstream development initiatives."
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  • Jan. 21, 2014, 1:18 PM
    • New German energy minister Sigmar Gabriel has outlined fresh solar, wind, and biogas subsidy cuts. The proposed cuts, which have already drawn criticism from politicians and the local solar industry, would come on top of 2012 cuts imposed by Europe's largest solar market.
    • Citing a wish to curb electricity bill increases caused by renewable energy subsidies, Gabriel is proposing (among other things) to lower Germany's renewable feed-in tariff to €0.12/kWH from €0.17/kWh, and to limit annual solar capacity expansion to 2.5GW.
    • He also proposes operators of new 500KW or larger solar plants sell their electricity directly by 2015, and to replace feed-in tariffs with a tender system by 2017. In addition, a self-consumption surcharge is proposed for certain new solar installations.
    • Solar stocks are seeing some profit-taking (TAN -2.6%) following the news. Notable decliners: FSLR -2.3%. JKS -2.9%. SUNE -2.8%. DQ -3.3%. YGE -2.8%. SOL -2.6%. SOL -2.6%. TSL -1.5%. CSUN -2.1%.
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  • Jan. 7, 2014, 1:05 PM
    • Solar stocks started 2014 with a bang, and are adding to their momentum today (TAN +4%) with the help of positive industry and company-specific news.
    • The Chinese government, which last year set a 35GW 2015 cumulative installation target, is now promising additional support, and says it will draft guidelines for industry M&A. Consolidation with China's fragmented solar cell/module market could both lower overcapacity (already declining thanks to rising demand) and lead to further margin expansion.
    • Yingli (YGE +8.7%) and Canadian Solar (CSIQ +7.4%), both of which saw huge 2013 gains, are today's biggest gainers. Yingli has announced it's forming a JV with state-owned China National Nuclear Corp. to create 500MW of utility-scale solar projects. Canadian has announced a deal to supply 25.3MW of modules for four North Carolina projects.
    • Also: Hanwha (HSOL +4.6%) has signed an MOU to supply up to 50MW of modules to U.S. residential solar installer OneRoof Energy.
    • Other gainers: FSLR +2.7% (hit by a Goldman downgrade yesterday). SUNE +4.4%. DQ +4.9%. CSUN +3.2%. JASO +5.5%. ENPH +6.8%. ASTI +3.8%. JKS +3%.
    | 5 Comments
  • Jan. 3, 2014, 3:07 PM
    • The recovery in the solar PV sector (KWT +1.9%; TAN +0.8%) should continue into 2014, Needham says, tapping Advanced Energy (AEIS +1.8%) and SunEdison (SUNE +0.8%) as its top picks in the space.
    • Needham believes the solar sector will continue to improve due to technology approaching grid parity in several unsubsidized markets; increased availability of financing through a number of private funds and public vehicles; a more balanced supply/demand; and reducing cost structure.
    • The firm believes overall worldwide solar installation will grow from 36 GW in 2013 to 42 GW in 2014, driven by rising demand in China, the U.S. and several emerging markets, while demand out of the Europe and Japan will remain stable.
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  • Jan. 2, 2014, 12:09 PM
    • On the first trading day of 2014, solar stocks are picking up right where they left off in 2013. Today's gains come in spite of a general selloff in equities.
    • A bullish Deutsche note could be helping the group: The firm's checks lead it to think cumulative Chinese solar installations will pass a 2014 government target of 12GW this year. Last month, Deutsche defended Chinese solar names in the face of concerns about a possible 4GW 2014 cap on local utility-scale installations.
    • Yingli (YGE +14.2%) is headlining today's winners. The company has announced it's forming a JV with a unit of Datong Coal Mine to build solar power plants in the Chinese city of Shuozhou. Hanwha, which has announced a Belgian module supply deal, is also up sharply.
    • Other big gainers: CSIQ +9.2%. FSLR +4.9%. SOL +7.3%. JASO +6.7%. JKS +6.2%. SCTY +6.1%. TSL +6.1%. LDK +4.6%. SUNE +3.1%. CSUN +7.8%.
    • Solar ETFs: KWT +2.9%. TAN +4.4%.
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  • Dec. 31, 2013, 2:33 PM
    • Taiwan's Economic Daily News reports solar wafer prices, depressed for a very long time, have risen back to the $0.98-$0.99 range. In addition, prices for wafers used to produce high-efficiency solar cells have topped $1, and a 5% price increase is expected in January.
    • Crashing wafer prices have forced suppliers such as SunEdison (SUNE +0.2%) to terminate or amend long-term wafer supply deals that involved relatively high prices. But improving demand (fueled by U.S./Chinese solar installations) and restrained capacity growth are leading business conditions to stabilize.
    • Other solar wafer suppliers: SOL, LDK.
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  • Dec. 19, 2013, 2:21 PM
    • SandRidge Energy (SD +2.6%) spikes after Leon Cooperman lists it as one of his five favorite stocks, citing the company's "fundamentally improving trend" the market has been slow to recognize; he thinks SD has the potential to double to ~$10.
    • The hedge fund manager also likes Sprint (S +3.3%) based on the prospect of a potential consolidation with T-Mobile, the U.K.'s Monitise (MONIF +7.8%) as a play on mobile banking, a re-made SunEdison (SUNE +4.8%) which is spinning off its money-losing semiconductor business, and Brazilian healthcare provider Qualicorp (QUAIF).
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  • Dec. 13, 2013, 10:21 AM
    • SunEdison (SUNE -2.1%) has upsized its convertible debt offering to $1B from $800M; the company will sell $500M worth of senior notes due 2018, and an equal quantity of notes due 2021. (PR)
    • Net proceeds are expected to total $974.2M. As previously stated, SunEdison plans to use $750M of the proceeds to pay down existing high-interest debt.  The rest will be used for hedge transactions and "general corporate purposes."
    • The 2018 notes carry an interest rate of 2%, and the 2021 notes a rte of 2.75%. Both sets of notes have an initial conversion price of $14.62/share; that represents a 30% premium to current trading levels.
    • Shares are adding to the losses they saw yesterday in response to SunEdison's Q4 warning.
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  • Dec. 12, 2013, 9:11 AM
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  • Dec. 11, 2013, 5:38 PM
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  • Dec. 11, 2013, 4:51 PM
    • SunEdison (SUNE) now expects its chip wafer division, soon to be spun off in an IPO, to post Q4 revenue of $205M-$215M, down from prior guidance of $220M-$230M. The company blames "continued market weakness." Pricing and market share are said to be largely unchanged. (PR)
    • SunEdison is also cutting its Q4 solar systems sales forecast to 209MW-234MW from a prior 234MW-264MW. However, the cut is simply due to a decision to keep more projects on the company's balance sheet. Completed systems guidance is unchanged at 209MW-234MW, and guidance for systems retained on SunEdison's balance sheet has been raised to 100MW-110MW from 75MW-80MW.
    • Separately, SunEdison is announcing a debt refinancing effort. The company plans to sell $800M worth of convertible senior notes (half due in 2018, the other half in 2021), and use the proceeds to redeem $550M worth of 7.75% senior notes due 2019 and a $200M term loan sporting a 10.75% interest rate.
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  • Dec. 3, 2013, 1:08 PM
    • DeLange Landen Financial Services (DLL) is doubling its investment in a SunEdison (SUNE +1.9%) fund meant to finance new solar installations (via sale/leaseback agreements) to $100M. Projects enabled by the fund are expected to be completed in 2013. (PR)
    • Much like SolarCity, SunEdison is looking to use asset-based financing options to grow its U.S. solar installation business. Thanks in part to healthy subsidies, domestic demand has grown rapidly in 2013.
    • News of the investment comes a week after SunEdison said it's planning to sell a 20%-30% stake in a solar project subsidiary through a U.S. IPO.
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  • Nov. 25, 2013, 1:17 PM
    • SunEdison (SUNE -1.6%) CFO Brian Wuebbels tells Reuters his company plans to sell a 20%-30% stake in a solar project subsidiary through a U.S. IPO that could raise up to $300M for financing new projects. The offering currently has a Q2 2014 ETA.
    • The subsidiary, called SunEdison Yield Co, would own projects in the U.S., U.K., Japan, Canada, Mexico, and Chile, and likely pay a quarterly dividend. Wuebbels think Yield Co. would likely have $40M-$60M in distributable cash flow.
    • SunEdison is also thinking of doing a Hong Kong or Singapore IPO for its Asian and South African solar projects If it happens, that offering would follow the U.S. IPO by a few months.
    • Both prospective IPOs are separate from the $250M offering SunEdison is planning for its chip wafer ops.
    • Down over 4% earlier today, shares have pared their losses following Wuebbels' remarks. They took off earlier this month after SunEdison provided strong Q3 numbers and Q4 guidance, and raise the possibility of spinning off some of its solar assets.
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  • Nov. 19, 2013, 2:41 PM
    • After steadily rising over the last three weeks, 3D printing stocks are reversing course in dramatic fashion today in the absence of major news. Solar stocks, which have also seen plenty of good days lately, are also selling off hard.
    • 3D printer makers 3D Systems (DDD -6.1%), Stratasys (SSYS -7.5%), ExOne (XONE -7.7%), and Voxeljet (VJET -14.1%) are all off sharply, as is custom parts maker Proto Labs ([[PRLB -4.8% - sometimes hyped as a 3D printing play).
    • Trina (TSL -4.9%), which provided a big Q3 beat and guidance hike this morning, has turned negative after shooting higher in premarket trading. Other solar decliners: YGE -10.9%. FSLR -4.6%. SOL -6.4%. JASO -6.4%. CSUN -5.6%. JKS 5.7%. DQ -5.5%. SUNE -5.5%. CSIQ -5.3%. SPWR -7.1%.
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  • Nov. 12, 2013, 8:59 AM
    • Up strongly yesterday, ever-volatile solar stocks are giving back some of their gains in premarket trading today after Yingli (I, II) and Hanwha (I, II) provided Q3 results and full-year guidance that left investors wanting more following big 2013 run-ups.
    • Notable decliners: TSL -3.9%. JKS -5.2%. JASO -3.4%. CSUN -3.3%. SCTY -1.3%. SUNE -2.5%.
    • Also: Canadian Solar (CSIQ) is down 2.4% in spite of announcing a 32MW module supply deal for a Chinese solar plant, and First Solar (FSLR) is down 0.7% in spite of announcing it has obtained power purchase agreements for a 40MW California power plant it's building.
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Company Description
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.