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Suntech Power Holdings Co. Ltd. Message Board

  • getintoh20 getintoh20 May 21, 2013 3:14 PM Flag

    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....

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    • 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.

      Sentiment: Strong Buy

    • The quote is old news back in March, isn't it?

    • not with this volume, 27M shares think it's going to get the loan to pay the bond holders

    • 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

      • 2 Replies to ddaawwgg72
      • May 22 China time is tonight US time.

        The meeting is about Chinese bank debt taken by STP's Chinese operation.

        Basically, STP (stock traded on NYSE) is a holding company.

        Let's make it simple by using simple analogy.

        NYSE STP built a Solar factory in China and sell them internationally. Then it borrowed a huge amount in China (about $1.4 Billion) backed by Chinese Solar factory.

        Chinese factory did not pay owned bank loan so now it is in China version of Chapter 11.

        Until Chinese bank loan is satisfied with these China Factory asset, Chinese STP factory asset can not be used to pay any claim of NYSE STP stock and NYSE 3% convertible bond.

        That is one reason NYSE 3% Bond enter the forbearance agreement since it does not have any direct claim on STP main asset: STP Wuxi factory.

        May 22 meeting is about Chinese bank loan holders. Of course, it will provide insight of the future of STP. these few days' STP trading is partly short covering, mostly day trading to drive it up.

        When it down, it will down in a same fashion.

        Long term, it is hard to sustain.

        There are plenty of Chinese stock traders trying to grab a quick bucks. No wonder all these Chinese solar stock more than doubled in 2 days.

        Look out.

      • Auto correct is dumb sometimes

 
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