SunEdison Inc (NYSE: SUNE)
SunEdison has been a hot topic as of late, and for good reason. Recently, we’ve seen good, bad and ugly from this stock, leading to momentous movements in both the up and down directions. Now, SUNE is producing a strong opportunity for those who are interested. Today, we’ll talk about the good and bad news that we’ve seen recently, as well as the strong opportunity that is being presented.
Good News From SUNE Over The Past Month
Over the past month, we’ve seen a slew of good news surrounding the solar and renewable energy industry as a whole. There has also been one big story with regard to SUNE in particular that excited investors. Here’s a look at recent positive headlines associated with SunEdison:
- SunEdison Reaches Agreement To Extinguish Debt – SunEdison recently announced that it has reached an agreement to extinguish 100% of its existing exchangeable notes. This works out to about $336 million worth of debt. Under the agreement, debt holders will receive an equity interest in some of SUNE renewable energy assets that are currently under development as well as Class A shares of TerraForm.
- Paris Climate Deal Is Great For Solar – Another important piece of news is the fact that Paris reached a major climate change agreement. 195 countries have agreed to work to reduce greenhouse gas emissions. To do so, these countries will have to reduce their reliance on fossil fuels, leading to higher demand for solar and other renewable energy systems. As a result, we can expect for SUNE to see a higher sales volume.
- Solar Stocks Get A Bump From The US Government – Finally, the United States government has offered a 30% tax credit for businesses and consumers that invest in renewable energy systems. This credit was expected to come to an end in 2016. However, that proved not to be the case. The credit was extended and will likely help to boost sales volume at SunEdison as well as other renewable energy companies.
Bad News From SUNE Over The Past Month
While there has been quite a bit of good news, there has also been a bit of bad news. It was recently announced that SunEdison is the centerpiece of a lawsuit. The company is being taken to court due to allegations that it has misled investors. According to the suit, SUNE offered several positive quarterly reports throughout 2014 and 2015, leading investors to believe that the company was doing incredibly well. However, after spending quite a bit of money on acquisitions, the company’s earnings fell and it was forced to lay off a large portion of its employees. The suit alleges that SUNE willfully misled investors with regard to their plans and ability to grow.
The Opportunity SunEedison Is Providing
As a result of the lawsuit mentioned above, SUNE has fallen in the market quite a bit. However, I don’t believe that the suit is warranted. While the acquisitions were expensive, they also position SunEdison to take a larger portion of the market share in the renewable energy space. Ultimately, the company spent money to make money. In reality, the move was good for investors.
With the stock currently trading relatively low, this presents quite the opportunity. The reality is that sentiment is changing with regard to renewable energy. As a result, SUNE is likely to see higher sales volume and post positive earnings in the near future. This will prove to be a catalyst, sending the stock upward! So, buying while the stock is low will likely prove to be a strong move in the future!
What Do You Think?
Where do you think SUNE is headed moving forward? Let us know your opinion in the comments below!
[Image Courtesy of Wikipedia]