Sunedison Inc (NYSE:SUNE) has been a very interesting stock to watch as of late. Between yesterday and today, we saw more roller coaster like movement on this one stock than we've seen across the entire market. Yesterday, the stock climbed dramatically on news from the company. However, today, it's tanking yet again. Today, we'll talk about why SUNE was up big yesterday, why the stock is down in a big way today, and what we can expect to see moving forward. So, let's get right to it...
Why SUNE Was Up Yesterday
Yesterday, Sunedison was soaring in the market starting the week off strong. While there wasn't much news released yesterday, there was a clear reason for the gain. SUNE announced that it would be temporarily suspending stock contributions to the retirement savings plans of its directors and executives. The delay will last until the company submits its 10K filing, which has been delayed for quite some time now. As a result, investors became incredibly excited, leading to massive gains in the market.
Why SUNE Is Falling Today
Today, SUNE is having an incredibly hard time in the market once again, and the declines are also for a very good reason. It was announced early this morning that TerraForm Global Inc (NASDAQ:GLBL) expects for its 10K filing for the year ending December 31, 2015 will be delayed further. Now it is expected that TerraForm will not release this annual report until after March 30th. In their announcement, TerraForm cited their relationship with Sunedison as a reason for the delayed filing. Unfortunately, this is sending SUNE down in a big way.
What We're Seeing From SUNE Today
As investors, one of the first things that we learn is that the news moves the market. Any time positive news is released, we can expect to see gains. That's exactly what sent SUNE up yesterday. Adversely, any time negative news is released with regard to a publicly traded company, we can expect to see declines, and that's exactly what we're seeing today. Currently (9:46), the stock is trading at $0.86 per share after a loss of $0.40 per share or 31.75% thus far today.
What We Can Expect To See From SUNE Moving Forward
Moving forward, I have a relatively mixed opinion of what we can expect to see from Sunedison. Before I get into expectations however, I have to say that I made a mistake in my previous analysis. In my research, I found a few reports that stated that SUNE had debt amounting to about $1 billion. Through recent further research, I found that the debt the company has exceeds $7 billion. However, I will say that my opinion has not changed as a result of this data. With that said, in the short term, I'm expecting for SUNE to continue to have a rough time in the market. Unfortunately, fears with regard to debts, SEC filings, and more are likely to keep the bears busy for the short run. However, in the long run, I believe we're going to see big gains. The reality is that while SUNE does have an exorbitant amount of debt, it also has an exorbitant amount of resources. There's no doubt in my mind that the company is going to have to restructure to get its finances in order. However, that restructuring is definitely possible considering the amount of assets the company has and the options with regard to the restructuring the company can take advantage of. As the company levels things out, investors may not be happy, and more declines may happen. However, once the restructuring is over, SUNE will be well positioned for growth, and that's exactly what I'm expecting to see. In fact, over the next year and a half or so, I'm expecting for the stock to climb to between $4.50 and $5.00 per share.