Lawyers are quick to launch class action lawsuits against companies such as VSLR, TERP and many others but nothing is done against JASO management and board. The board announced nearly a year ago it created a committee to examine the buyout offer made by the CEO. There has been no decision since then so the committee is bogus, the buyout offer is bogus and in the meantime the stock has been brain dead for a year although the company has done better than in previous years.
The so-called buyout killed this stock that swings betwee $8.5 and $9.5 with no clear direction. No one wants to buy because of the cap placed with the buyout offer and people are not selling too low hoping eventually the buyout will come through.
Nowhere in the Western world does a buyout offer get neglected this way. Jaso pretended over six months ago it created a special committee to look at the offer. It's been so many months we can laugh at this committee. Jaso is only showing contempt for its investors and for this reason among others the stock is now dead. The volume keeps on shrinking and there is no visibility.
The question is simple, can the money invested be better invested in a different stock, if yes then time to move it, if not, continue to hold Sune...
Unless news void recent rumors and news there is no need to take such a risk as to holding this stock. If good news show up then there will be plenty of times to benefit from a recovery. One could jump in at 20c, 50c or even $1.5 and still benefit from a humongous short squeeze IF the company doesn't go BK and recovers over time. However buying now is way too risky as not a single positive news has come our way in the last 30 days or so.
ESLR, HOKU, Solynda, LDK, GTAT, STP, all went BK although their future once looked bright. They went too big or got involved in fraud or didn't forecast what was coming. I sincerely hope that SUNE won't join this team of bankrupted solar companies.
There is no indication that assets are higher than debts and you are incorrect. If you need to repay a loan and don't have the cash in hands at that time then you are screwed. Assets are later sold cheap to pay for liabilities.
One day people will wake up to the news SUNE filed for chapter 11, bankruptcy reorganization. It has happened to many other companies before and all the writing is now on the wall. The company is delinquent in its filings and reports. It has huge debts impossible to pay back, disastrous relationship with customers and partners and lost confidence of investors. Many prefer to see a rosy picture but the reality can strike back harshly. SUNE can restructure under chapter 11 protection and emerge as a new company, issue new stocks and start over. It has happened to larger companies before, remember 2008? Some people refuse to learn and accept realities, they fall in love with a stock and refuse to let go. Each day investors should ask themselves, had I not invested in SUNE would I buy now? If the answer is no then they should sell and invest the same money somewhere else.
Failure to buy shows poor decisions were made but also that finances are very tight for SUNE. Yes, it is a big relief because SUNE doesn't need to find the money it doesn't have BUT credibility has been hit hard and SUNE paid a lot on legals fees and penalties. We need to know what this amount to but at least SUNE seems out of the hole for good.
Sentiment: Strong Buy
See latest PR from today
The internal investigation is currently just an investigation. It may find wrongdoings or not but there is a news that could come at anytime and could boost the share price significantly. This is the news of a settlement reached with So Amer failed buyout lawsuit. Talks of settlements usually end up with a settlement.
Also in Hawai there could be a reversal of the project cancellation especially with the VSLR buyout now in the works. Another thing to keep in mind is that Blackstone approved the buyout and is now a large shareholder.
Today's news were bad and one was unexpected. The trial might lead nowhere or will have consequences but we can't know at this point. The investigation is real and serious but again might lead nowhere as well.