As SunEdison, Inc. (SUNE) flirts with 52-week lows, and conflicting news reports have shareholders scratching their heads, what will happen next?
About an hour before the closing bell an article hit the internet that an investor meeting hosted by Deutsche Bank addressed the company’s $11.6 billion debt structure and its plans to reduce operating costs. SunEdison’s high debt structure has been a major concern for shareholders as the stock has plummeted 86% from a 52-week high of $33.45 on July 20, 2015. When the Deutsche Bank article hit the press, SUNE stock spiked almost 8% to close at $3.25 a share, up $0.23 from the open.
But the party was short lived. Another press release, this one after the closing bell from Khang & Khang LLP, announced the commencement of an investigation concerning claims of potential misrepresentations by SunEdison, Inc. causing investors potential harm. In after hours trading SUNE stock has dropped over 10% to $2.92 a share.
Meanwhile, shareholders who aren’t happy with SunEdison’s merger deals with Invenergy and Vivent Solar were told the deals are going forward and will provide the company with needed cash flow. How all this news affects investor confidence will soon be known. At the end of October, the short percentage of float was 32%.
Deutsche Bank is bullish on SunEdison, Inc (SUNE) with a target price of $16 per share citing the 2016 earning power of its yield producing assets.
