Sunedison (SUNE) Stock: Continues Downward Spiral

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Sunedison Inc (NYSE: SUNE)

Sunedison has had an incredibly rough time in the market as of late. Today, the stock is showing a continuation of its downward spiral. Now many investors are starting to ask, “How long can the declines last?” Unfortunately, I believe that declines may last for quite some time. While we will see good days in the midst of a bad period, I don’t see the days of SUNE priced at more than $30 per share coming back anytime soon. Here’s why…

Why SUNE Isn’t Likely To Exponentially Grow In The Near Term

As I’m sure you know, Sunedison is a company that is part of a wide market known as the energy sector. Another thing that you probably already know is that the energy sector is struggling at the moment. The question here is, “How long will the energy sector struggle?” After all, when the energy sector as a whole starts to recover, we can expect to see a recovery in SUNE. Unfortunately, I don’t see this happening any time soon.

The reality is that the energy sector is driven by oil. Since the decline in oil prices in late 2014, we’ve seen hard times in the sector. While it took until mid-2015 for clean energy companies to feel the pain, the issues all branch from the same set of roots. The problem here is that thanks to the oil crisis, the energy sector isn’t likely to see any heavy improvements any time soon. We’ve been in the midst of the energy crisis for about a year at this point and the world is still producing more oil than it’s using. The bottom line here is that for the sector to realize drastic improvements, leading to improvements in the value of SUNE and other clean energy stocks, demand for energy will have to climb and production of oil and natural gas will have to decline. Given the current state of the global economy, I don’t see this happening for at least another 2 years!

SUNE Analysis

The stock is down 4.76%, or $0.16, at $3.20 per share. About 11.00 million shares traded hands. SUNE has declined 87.05% since April 27, 2015 and is downtrending. It has underperformed by 86.16% the S&P500.

Out of 2 analysts covering Sunedison (NASDAQ:SUNE), 2 rate it “Buy”, 0 “Sell”, and 0 “Hold”. This means 100% are positive. $45 is the highest target while $20 is the lowest. The $30 average target is 837.50% above today’s ($3.2) stock price. Sunedison was the topic in 9 analyst reports since August 7, 2015 according to StockzIntelligence Inc. Deutsche Bank maintained the stock on September 6 with “Buy” rating. Credit Suisse maintained it with “Outperform” rating and $45 target price in an August 7 report. JP Morgan initiated the shares of SUNE in a report on August 31 with “Overweight” rating. Finally, Robert W. Baird maintained the stock with “Hold” rating in an August 18 report.

SunEdison, Inc. is a developer and seller of photovoltaic energy solutions, an owner and operator of clean power generation assets, and a developer and maker of silicon wafers. The company has a market cap of $1.09 billion. The firm operates in three divisions: solar energy, terraform power, and semiconductor materials through SunEdison Semiconductor Ltd. (SSL). It currently has negative earnings. The company’s solar energy segment provides solar energy services that integrate the design, installation, financing, monitoring, activities, and maintenance portions of the downstream solar market for the company’s customers.

What Do You Think?

Where do you think SUNE is headed and why? Let us know your opinion in the comments below!

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2 COMMENTS

  1. While I will agree with you about sune takin a bit hit, It might serve you well to ask your self and any other folks shorting the hell out of this stock to realize or ,to, admit YOUR the reason for the fall. Everytime this stock even starts to gain a little traction, you guys suck the dam wealth right out of it. So don’t be play stupid. Dam shorts are nothing but leetches.

    • Hey Greg,

      I appreciate your concerns. I am not a short. Matter of fact, I don’t invest in anything I write about because that would be a conflict of interest. I will admit that short interest is sucking the life out of SUNE. However, I also believe that the short interest is warranted to an extent as a result of the poor performance of the energy sector as a whole. Unfortunately, the market is a battle between the bulls and the bears, and in this case, the bears are winning at the moment. Nonetheless, in a couple of years, when the energy sector recovers fully, SUNE Will be great again!

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