
SunEdison at risk of bankruptcy, unit says; shares plummet 60 percent - e15ctr0n
http://www.reuters.com/article/us-sunedison-inc-terraform-global-risk-idUSKCN0WV160
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chollida1
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:)

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stygiansonic
I 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-
ei...](http://www.nytimes.com/2016/01/28/business/dealbook/david-einhorn-gets-
a-seat-on-sunedison-board.html)

~~~
cossatot
It 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-
clima...](http://www.latimes.com/politics/la-pol-sac-jerry-brown-climate-
change-renewable-energy-20151007-story.html)

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n0us
Anyone who follows /r/wallstreetbets on reddit has probably heard a lot about
this company recently. I didn't read most of the posts but it seems that most
of them either hit it out of the park or went home tail between their legs on
this one.

(I never day trade because I don't want to toss my money in the trash but it's
interesting to follow)

Edit:
[https://www.reddit.com/r/wallstreetbets/comments/4clo1y/i_to...](https://www.reddit.com/r/wallstreetbets/comments/4clo1y/i_took_out_a_second_mortage_and_yolod_sune/)
seems many of them lost

~~~
kchoudhu
Serious question about /r/wallstreetbets: is that sub a parody, or a
collection of people with undiagnosed gambling issues?

~~~
endymi0n
Funnily enough, viewing what you're doing there as "trading" comes a long way
in hiding your gambling habit from both yourself and others. So much so, that
certain extremely short running "binary options" trading platforms at least
here in Germany do little to hide that they're offering a completely legal and
unregulated form of gambling by showing plumbers and haircutters "earning
money" by "trading" on these platforms in prime time TV ads.

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tkinom
Heard an ad on NPR popcast show about "invest in solar" with 10% guarantee
return.

Wonder if that's related to this?

~~~
smpetrey
I don't know about 10%... but SolarCity has a Bond programme.

[https://solarbonds.solarcity.com](https://solarbonds.solarcity.com)

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throwaway_xx9
Well, I guess SunEdison couldn't get a monopoly on solar energy. Who knew?

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paulpauper
wish I had bought put option on this. PBR (petro Brazil ) may also be at risk

there are probably a couple dozen such energy,mining ,drilling, etc companies
that may fall 50% in a week.

A 4 cent investment ($4 per contract) can turn into $1-1.5 ($150) if the
timing is right

