Suntech Power Holdings (STP) defaulted on its convertible bonds
Despite a small bounce, Citigroup’s Shahriar Pourreza and Timothy Lam lowered their price target for the company’s shares to 50 cents, down from $1.50. They also reiterated their sell on the stock. But they may actually be more bearish than that. The analysts write:
At this juncture, STP’s equity value could be worth zero unless China Development Bank (CDB) or provisional governments step in and provide a backstop for the bonds – a highly unlikely scenario at this juncture. A more probable scenario in our view is a takeover of the assets by the Wuxi government.
But even a takeover by the Wuxi government might not be enough to bailout Suntech’s equity holders. That’s because the state government might prefer just to bailout the local units and let everything else go, according to a note Maxim Group released last week when it reiterated its call that the stock was heading to zero.
You idiots do realize that STP is going under right? Fools.. Todays buyers are tomorrow bag holders....
getintoh20, you come across as a very envious person, surely u are not just here to help us save our money by gettingout of this company. Now u told us, your mission is complete, now go outside and do some bird watching, or maybe go bowling.
Don't bother, the purple on this board don't use logic and are blinded by their own greed. They think the news coming tomorrow will be good. Mind you this is news conning from a meeting where STP basically begs it debt holders for more time. I suspect either bankruptcy, or the debt being converted to equity. The latter includes a massive solution followed by a reverse spilt