SunEdison, Inc. (SUNE) Stock | Agreements with Terraform Global and L.A. County in Separate Megawatt Deals

SunEdison Logo (PRNewsFoto/SunEdison, Inc.)

SunEdison, Inc. (NASDAQ: SUNE)

SunEdison, Inc. (SUNE), a renewable energy company yesterday announced a 6.2 megawatt solar power deal with L.A. County. Company also announced to sell a series of projects totalling 425 megawatts to TerraForm Global for the sum of $231 million.


SunEdison, Inc. CEO Comments

“This agreement is a win-win for both SunEdison and TerraForm Global shareholders,” commented Ahmad Chatila, President and Chief Executive Officer of SunEdison. “This transaction provides accretive DPS to TerraForm Global shareholders.”  PR Newswire

Comments below are made by SUNE’S Regional General manager regarding L.A County deal:

“Municipalities across America are looking for ways to stretch their dollars and take a bite out of rising electricity rates, and SunEdison solar systems are a great way to accomplish this goal,” said Sam Youneszadeh, SunEdison’s regional general manager of its Western U.S. solar business. “By signing a long term agreement with guaranteed pricing, L.A. County will save millions of dollars while dramatically reducing its exposure to rising utility rates. SunEdison has installed hundreds of solar systems for public sector customers throughout the U.S., so our customers can rest assured that we understand their needs and know how to do the job right.”  PR Newswire


SUNE Technical Analysis


SUNE gapped up in price yesterday to $3.40, up from the prior day’s close of $3.00, which is a 13% increase on the favorable news. Taking a look at the daily chart, we can see the last time SUNE traded above this price level was on November 16th, when it closed at $4.56. Taking a further look back on the daily chart we can see that SUNE has been on an overall decline dating back to July 20th when it traded at $31.66. SUNE may have a little rebound off this big move down. The first significant resistance level for any move up would be $4.50. SUNE does have a high float of 271.88 million shares and was trading below the daily average volume. SUNE did reach pre market highs of $3.60, but gave back $0.20 at the open, or equivalent to 6%. For trading purposes, my entry point would have been $3.50 looking for a run to $4.00. My stop loss would have been $3.35, fearing anything below that and the stock would start to fill in the gap up.

Company Profile

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. The TerraForm Power Segment owns and operates clean power generation assets that sell electricity through long-term power purchase agreements to utility, commercial, and residential customers. The Semiconductor Materials segment manufactures and sells silicon wafers to the semiconductor industry, such as prime and test/monitor wafers; polished wafers for various applications, including memory, analog, RF devices, digital signal processors, and power devices; EPI wafers; and silicon-on-insulator wafers that enhances switching speeds and the performance of RF devices, such as power amplifiers, switches, and sensors. Its wafers are used as starting materials for the manufacture of various types of semiconductor devices, including microprocessor, memory, logic, and power devices. 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. The company was formerly known as MEMC Electronic Materials, Inc. and changed its name to SunEdison, Inc. in May 2013. SunEdison, Inc. was founded in 1984 and is headquartered in Maryland Heights, Missouri.  Yahoo Finance