SunEdison, Inc. (NYSE: SUNE)
SUNE plummeted today on news that another hedge fund has greatly reduced its shares in the company. Greenlight Capital, billionaire David Einhorn’s fund, slashed its stake by 25% to 18.2 million shares. Omega Advisors, the hedge fund helmed by Leon Cooperman, also sold during the last quarter, bringing its shareholdings down by 3.1 million to 5.3 million shares Yahoo Finance.
SUNE Technical Analysis
SUNE dropped 33% in price today to $3.02, a $1.54 decrease from the previous day. Looking at the chart, we see that it approached all-time lows today on massive volume as the selloff continues. The stock has not closed in this range since August of 1998 when it closed at $3.00. The low today at one point slipped down as far as $2.81. Volume today was a massive 167 million, compared to its average trading volume of 37.1 million.
SunEdison, Inc. Recent Financials
The company has recently taken on a considerable amount of debt for financing its yieldcos and has had to pay $152 million towards a margin loan for one of them (TerraForm). Of even greater concern to the hedge funds and analysts alike is the recent apparent reclassification of more than $700 million worth of debt from “non-recourse” to “recourse,” meaning the company’s lenders now have access to additional SunEdison collateral. SunEdison has about $12 billion of debt on its balance sheet, with some $3 billion of that amount listed as recourse to the company, according to Deutsche Bank analyst Vishal Shah and Jerimiah Booream-Phelps Bloomberg.
“During the third quarter, we continued our track record of execution within the development business by delivering over 600 MW, more than double versus the prior year,” said Ahmad Chatila, SunEdison chief executive officer. “In addition, we made the difficult, but necessary decision to optimize our organization in the face of the current market conditions within the yieldco space. These changes will not only set up the business for long-term success, but also should position the development business to generate positive cash flow in mid-2016.”
SunEdison, Inc. develops, manufactures, and sells silicon wafers to the semiconductor industry. The company operates through three segments: Solar Energy, TerraForm Power, and Semiconductor Materials. The Solar Energy segment provides solar energy services that integrate the design, installation, financing, monitoring, operations, and maintenance portions of the downstream solar market. It also manufactures polysilicon, silicon wafers, and solar modules. As of December 31, 2014, this segment had interconnected approximately 974 solar power systems representing 2.35 gigawatts of solar energy generating capacity. SunEdison, Inc. serves semiconductor device manufacturers, including the memory, microprocessor, and ASIC manufacturers; foundries; national retail chains and real estate property management firms; federal, state, and municipal governments; and utilities. It markets its products and services primarily through a direct sales force, as well as local or regional solar channel partners. SunEdison, Inc. was founded in 1984 and is headquartered in Maryland Heights, Missouri Yahoo Finance.