Sunedison Inc (NYSE: SUNE)
Sunedison has had an incredible time in the market as of late. Over the past several trading sessions, we’ve seen massive positive movement on the stock, driving the price from $4.19 to $4.93 per share over the course of 5 days. Today, pre-market activity is showing that another strong day is in store for the stock, but can gains continue? Today, we’ll discuss whether or not SUNE is likely to continue heading upward.
Adjusting My Opinion
If you’ve read any of my recent posts with regard to SUNE, I have announced that I have short-term bullish expectations, but in the long run, I’m expecting for the bears to win the battle. Based on what I’ve seen over the past several trading sessions, I believe that it’s time to adjust my expectations with regard to the stock.
The reason I remained relatively bearish on SUNE was simple. The stock is essentially part of the energy sector. While SUNE is focused on renewable energy, the reality is that energy is all in one basket. With that said, I expected that with oil still in the rut we’ve been seeing over the past year and the energy sector struggling as a whole, the gains we’ve seen on this particular stock would be short term. Although it may hurt my pride, I have to admit that I was wrong in this case .
The bottom line is that while SUNE has been climbing, oil has been declining. In fact, as SUNE has been posting solid gains day after day, oil has been declining and is now trading well below $40 per barrel. So, the perceived correlation between the value of oil and SUNE is incorrect. With all of that being said, demand for solar is climbing, regardless of what oil is doing. Therefore, I must adjust my opinion and let you know that I’m expecting for the gains we’ve seen from Sunedison to continue for the long term.
Positive News We’ve Seen From SUNE Recently
Recently, there have been several pieces of positive news released, helping to support the climb we’re seeing in the value of Sunedison. Here are three of the biggest stories:
- Greenhouse Gas Deal In Paris – On Saturday it was announced that a deal to curb greenhouse gas emissions was reached in Paris. This deal is a 20-year plan that will help move from fossil fuels to renewable energy sources such as solar and wind energy. This helped lead to a spike on SUNE earlier in the week.
- Deal Is On With Vivint – Last week, we found out that a canceled deal between SUNE and Vivint Solar was back on. Now, SUNE is slated to acquire the company at a steep discount. This led to more investor excitement.
- Tax Benefits – Solar stocks, including Sunedison also got a nice bump up as the result of current investment tax credits that have been extended. Tax credits on solar investments are now expected to last beyond 2016.
What We’re Seeing In The Market Today
Today seems like it’s going to be yet another great day for Sunedison. Following all of the positive news, investor excitement is continuing. Currently (8:11) in pre-market trading, SUNE is trading at $5.48 per share after a gain of $0.55 per share or 11.04%.
What We Can Expect To See Moving Forward
As mentioned above, based on the overwhelmingly positive news we’ve seen with regard to SUNE and the solar industry as a whole, I’m expecting to see more bullish activity out of this stock moving forward. As the solar industry continues to be met with positivity and renewable energy becomes a sector of its own, we can expect to see more gains!
What Do You Think?
Where do you think SUNE is headed moving forward? Let us know your opinion in the comments below!
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