Downgrade because of increased uncertainty. If we can clear Tepper and LAP lawsuits, it will be clear sailing back up!
Patrick Jobin of Credit Suisse has downgraded the rating on the company from Outperform to Neutral, while lowering the price target from $19 to $3.
The downgrade in the rating is based on increased uncertainty regarding the company’s near term liquidity profile.
Anlayst Patrick Jobin mentioned that Sunedison has announced on February 18 that it had “reached an agreement to restructure the polysilicon business (including a net cash outflow of $119m).”
In addition, Hawaiian Electric Industries, Inc. (NYSE: HE) has announced its decision to cancel three PPAs with Sunedison due to the latter company having missed milestones that could lead to the reinstatement of debt up to $215 million due April 1.
The Appaloosa injunction order seeking to block the acquisition by TerraForm Power Inc’s (NASDAQ: TERP) of the residential solar assets of Vivint Solar Inc (NYSE: VSLR) “is still ongoing and presents another potential overhang, as we have written, in addition to the LAP litigation seeking $150m,” Jobin stated.
Jobin believes that the company has tried to move too rapidly, looking for “hyper growth” during a period when capital markets have been more challenged, thereby constraining its balance sheet.
I hope so too, but there are still ER and Tepper lawsuit outcome which could change everything depending on who wins. I will wait after ER and lawsuit to make more purchase.
GLBL should be fine, but SUNE who knows at this point. SUNE is in such a mess and facked up company.
Exactly, they have to wait until the situation is this bad to repsond. What the facking have they been doing all this time???? What a bunch of incompetent management at SUNE. idiots.
A word of assurance from Einhorn would restore a huge confidence regarding a current situation of SUNE as a company and his investment believed in SUNE? I am sure he does Not want to see loss in his SUNE investment like the rest of us longs.
I hope so too. No under $1 please. It is devastating if SUNE falls below $1 tomorrow, which means, leading to potential delisting and reverse split.
If you do, can you check it out if SunEdison still have lights on and there are still employee working there? The silence from this facking management team is deafening and sickening. Give us some hope you facking idiot management.
I am with you bro. Was expecting stock to slowly go back up, but now all hope are lost. I am sheeting in my pants right now to honest and hope tomorrow the stock does not drop below $1.
it would help if the facking management were to say something to re-assure the shareholders. they just facking mums.
The media will continue to take turn bashing SUNE. Their only motive is too SUNE fail.
and it is killing the stock and shareholders. Management should communicate and let investors know their plans on making this company successful going forward. this is not acceptable by any investment standard.
This is another loss in business for SunEdison that it will and can never get it back again. Who will trust the SunEdison brand-name again after all the mess they got themselves into?
yes, that could likely be the case. This management is so facked up and incompetent in everything they do. CEO must be fired to save the company.
Hawaiian just cancelled 3 of SunEdison Solar Farm. Talked about how facked up SUNE management has become. SunEdision brand-name has been tarnished and lost trust from customers even if they survive this mess.
Let's hope good News out anytime soon.
I am sheeting in my pants holding this stock tonight, but have no choice since I already loss too much.
both are deliberately set out to bash SUNE and keep SUNE stock from going up much higher. They have evil agenda to destroy SUNE stock. They should be hold accountable for your bashing and should be flogged.
The vultures are circling SunEdison Inc (NYSE: SUNE), and we can see that some are already lining up for what scraps of value the company may have left. That was the key takeaway last week when Latin America Power's shareholders convinced a judge to limit SUNE's transactions, which may eventually lead to the seizure of $150 million in cash that they feel they're owed after SunEdison walked away from its agreement to acquire the company.
This is just the latest of SunEdison's financial troubles, and it's a very real possibility that the company will be pulled into bankruptcy sometime in 2016.
Cash could quickly dry up
To frame SunEdison's troubles, we have to look at what its near-term challenges are. On January 5, SunEdison's management said it had $619 million in cash and had 2.9 GW of projects under construction, all of which need cash to be completed. We don't know the exact cash burn rate those projects have or whether management can sell them quickly, but it's likely SunEdison will be burning through most of this cash hoard early in 2016.