With the yieldcos in jeopardy, and the breadth of the projects at hand, a 500 million-dollar company is wedged into about 18 billion in municipal projects. Kill this beast and the long-term damage is scary. Especially for state pensioners.
You make an excellent point. But now the yieldcos are not safe. Neither are the municipalities who are contracting with them.
Definition of Too Big to Fail. I don't think they even delist at the worst.
Odd fact. Tesla sold all-time record preorders for an electric car when gas is $1.85/gal. It's not about global warming. People prefer clean. The assets will skyrocket, and that's why the hedge funds want to rip them apart.
But all their customers are towns, cities, states, countries. These contracts are de funct with the demise of SunEd.
Does anyone think this makes sense? Buffet should sweep these little fish aside and do a bailout backed with bonds from the government entities that have good-faith skin in this game.
Buy, Buy, 'bye!
A further thought for all out there: Is SUNE too big to fail?
They have a massive wave of projects in jeopardy, most of them government-invested at some level. Can they wait four years for the courts to say, "Okay, you own this contract and asset and not SunEd, so you can go forward with the assets," without making everything irrelevant?
The streamlined version of this SNAFU is to fund the "Whale" so municipalities don't suffer, or at least mitigate exposure. Anything else is not mitigation but pure hedge fund robber baron #$%$ at stage 2, in the old school theme: Dismantle, lay off, move on.
I agree in principle but it's not enough at his entry points. He's making money on loan interest and wanting to score the pieces. He was gung ho until Tepper got involved. Now it's picking up the pieces. You know, like tiddly-winks.
Me, I'm long. If you are a South Park fan, right now it feels more like Lemmy Winks. :)
That is in keeping with already-announced company shift in business model. I think it's more interesting that they are spending on legal. I wish they did that in the first place, so none of this would have happened.
I hope so, but I fear the hedge funds recognize what you say and want it on the very cheap. They want to dismantle SUNE and then work out the downstream agreements. After they all get a piece. I know, it's a conspiracy of hedge funds. Nobody cares. Freedom is only free inside the "four corners" of the supreme court. #$%$.
But really resurrecting the confidence of the ongoing projects for like 2 billion sounds cheap in the long run. Maybe SUNE should farm out the legal on a contingent-fee basis. Ha ha!
PS - In terms of at least HECO in Hawaii, abandoning the agreement with SUNE is a good example. This goes to court and they need to demonstrate how they are expediting the solar coming online by doing it. Starting from scratch just means it will take longer.
They look at what was going on and then act preemptively for no benefit, perhaps delaying solar much longer in Hawaii. That's self-serving. They can't win a court fight.
All the complaints are in hindsight. The S&P two-year chart says a whole lot about the environment. But look at the two-year if you haven't in a while. "Sell in May and go away" might be a whopper. It's a terrible chart.
But SUNE is a contrarian play and could go up as the market dives, has ammo to continue the legal fight, and in the best case their accusers might go bankrupt before trial. Ha ha! Settlement for pennies on the dollar.
I think we're boned.
When you get sued like SUNE, I seem to remember that companies have to earmark money for the litigation. That keeps it out of free cash. When a bunch of people do it to a public corporation, the complaints can become self-fulfilling because of the cost burdens and lockups.
This is a public company. In terms of conspiracies, you don't need to discuss it but merely act in unison. But it has to be a conspiracy to do something illegal. If an attorney can find that nook or cranny, it could be actionable.
This would be THE landmark animal to experiment on if you're in that kind of law firm.
I wonder if David Tepper is on that list of money launderers that came out from Panama!
So now you can post a message like the mudda fockers: "Overheard: Tepper might be on list from Panama"
What about SUNE and TERP? Or does GLBL expect the dust to settle by then?
The article says also something interesting: SunEd is seeking equity partners for all their projects. Sounds like they want to be joint-interest operators, or at least just operators. Good for SunEd, but it means the yieldcos aren't going to be that important to them anymore. SunEd and the yieldcos can both move forward, but in divergent directions.
Combined with the patent portfolio inside SunEd, the company might survive even through bankruptcy - but that doesn't help us as shareholders because if they do BK, they'll probably delist and then reissue new shares.
I think somebody else already owns this company in between filings.
PS - If I disappear from this board, it's because my wife is going to kill me! :)
Oddly enough, it's working so far. I wouldn't even attempt this except the stock is so liquid in terms of volume. I can get out fast.