Modest Money | Mar 09, 2016 01:13AM ET
Sunedison Inc (NYSE: SUNE)
Sunedison has had a bit of a hard time in the market over the past few months, and while the declines are understandable, I believe that they are rooted in fear… not sentiment. Nonetheless, we’re starting to see an incredible recovery in the stock, and now the big question is, “Will the SUNE recovery continue?” Today, we’ll talk about why SUNE had such a rough time over the past few months, what’s changed that is leading to the gains, and whether or not gains are likely to continue. So, let’s get right to it…
h2 Why SUNE Fell So Dramatically/h2Sunedison started to fall in a big way late last year as the company’s debt started to come to the attention of investors. You see, Sunedison is the largest solar company in the world when you take a look at their assets. However, they got to be this big by acquiring other, smaller solar companies. Those acquisitions were incredibly expensive. So expensive in fact that SUNE quickly worked its way to owing nearly $1 billion to financial institutions. Let’s face it, $1 billion is a ton of money to owe, enough to really start causing concerns for investors. Soon, we started to see investor advocate law suits attacking SUNE for building up so much debt, and the stock price started to sink like a brick!
h2 Why The Stock Has Turned Around/h2Since Sunedison started to decline, I’ve maintained an incredibly bullish opinion on the stock. The reality is that there are several factors that heavily outweigh the debt owed. Now, investors didn’t quite realize that until the lawsuits against the company started to fade. Now that there are no more legal battles however, we’re finally back to seeing gains. Here are some of the reasons I’ve maintained such a bullish opinion on SUNE…
While SUNE has been dealt a bit of a heavy hand as of late, the stock is recovering. Personally, I believe that we’re seeing the beginning of a strong recovery that will last for the long term. So, if you want to get involved in a great solar stock, you may want to take a close look at SUNE.
h2 What Do You Think?/h2Where do you think SUNE is headed moving forward and why? Let us know your opinion in the comments below!
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