4 ms·
You can go down the financial "shenanigans" red flags checklist with SUNE - complex accounting structure that includes many sub companies funneling money and d
by chollida1 11y ago
You can go down the financial "shenanigans" red flags checklist with SUNE
- complex accounting structure that includes many sub companies funneling money and debt from one to another, check
- late on filing their financials, in fact today is the last day they have to file to be in good standing with the SEC, check
- huge amount of debt relative to revenue, check
- SEC investigation into their accounting practices, check
- rapid growth in the past that was mostly due to heavily financed acquisitions, check.
- high short interest ratio, check.
Though to be fair to the last point their SI has come down alot in the past couple of months as the stock became too expensive to hold borrow, and now that its at 50 cents/share, its not longer a good short target as the upside/downside is no longer that compelling. People probably have KBIO still fresh in their minds:)
- stygiansonic 11y agoI wonder why or perhaps how SUNE became a hedge fund hotel? Does it have anything to do with the factors you mentioned making it more "attractive" to certain types of hedge funds? "Mr. Einhorn is not the only one to have suffered a blow from SunEdison last year. And he is not the only voice to go up against the company, which has become a so-called hedge fund hotel, with more than 160 hedge funds in the stock in September, according to report by the research firm Novus." http://www.nytimes.com/2016/01/28/business/dealbook/david-einhorn-gets-a-seat-on-sunedison-board.html http://www.nytimes.com/2016/01/28/business/dealbook/david-ei...
- cossatot 11y agoIt might have to do with increasing state subsidies for and regulations requiring renewable energy[1] as well as major, image-sensitive investors like CalPERS wanting to get rid of their fossil fuel holdings. These could both increase the price of SUNE et al relative to a straight business fundamentals value. [1]: e.g. http://www.latimes.com/politics/la-pol-sac-jerry-brown-climate-change-renewable-energy-20151007-story.html http://www.latimes.com/politics/la-pol-sac-jerry-brown-clima...
- mgleason_3 11y agoDidn't SunEdison get a bunch of money from Obama?