Analysts and Investors seeing SunEdison as "House of Cards"

SunEdison's House of Cards Is Starting to Crumble
Falling stock prices and rising interest rates are making SunEdison a tough bet for investors.

 

Major financial publications, at least those that go beyond printing SunEdison's press releases verbatim, are referring to SunEdison as a "House of Cards". This is appropriate on two levels:

  1. SunEdison's financial strategy of relying on yieldcos is as fragile and vulnerable as a literal house of cards.

  2. SunEdison's (First Wind's) business tactics include intimidation, perjury, false promises, data manipulation, etc. mirror those of Kevin Spacey's character (Frank Underwood) in the popular Netflix series "House of Cards".


In this article, The Motley Fool's Travis Hoium explains how SunEdison is vulnerable to a raising cost of debt service coupled with a falling stock price. Over the past 30 days SunEdison stock has lost 60% of its value and lowering the cost of servicing its $10.7 BILLION in debt (as of June 31.2015) doesn't even qualify as a pipedream.

We can only hope that First Wind henchmen Paul Gaynor (formerly Enron), Kurt Adams (former Chair, Maine PUC), Angus King 3rd (son of Obama crony AK), Jim Cassida (formerly DEP) and others are heavily invested in SunEdison stock!

Sure, with the stock price in the dumps there are going to be buyers (esp SunEdison directors and employees) but as they say "even a dead cat bounces". For the latest see: Sunedison (SUNE) marked as a dead cat bounce stock

This story ought to be shared widely. SunEdison has launched an all-out propaganda tsunami to mask the truth. Consider for example the "article" that ran in Windpower Monthly just yesterday (8/24) entitled "Analysis: SunEdison heading for renewables 'supermajor' status". I guess they had to put 'Analysis' in the title to mask the fact that the article is a product of professional wind energy cheerleader, Ros Davidson. See her scorecard in the Carbon Capture Report.

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Comment by Rob P on August 25, 2015 at 8:57pm

Without the PTC Sun Edison's 'pipeline' of projects will be a 'pipe-dream'.

SunEdison, Inc. (SUNE)

-NYSE

8.80 Down 1.93(17.99%) 4:06PM EDT
After Hours : 8.54 Down 0.26 (2.95%) 7:59PM EDT
Comment by Eric A. Tuttle on August 25, 2015 at 6:34pm

Though the Yieldco (TerraForm) sold higher than asked on its IPO, which holds the vast majority of SunEdison assets (of various companies) to help boost those asset values, it too has lost some of that capital gain. This Yieldco scheme allows a company essentially to sell it's debts to others who would not directly invest knowingly into SunEdison. Similar to a Mutual Fund composed of different companies managed by independent managers, a Yieldco is held by its creator for its creators needs while double dipping from investors. (My limited view of how this scheme works)  

Comment by Eric A. Tuttle on August 25, 2015 at 5:32pm

I see prices going up....... to cover these debts. Not only in Green energy but other markets as well. Another Bubble thanks to Trillions of assumed debt from borrowing since Obama's Quick Fixes started, vs working for and earning our way back to prosperity. Though this has been going on for many past administrations also, this is the fastest growing debt in history. Yet Congress does nothing effective to prevent this, so long as they look good, bring home the pork (which is now rotted). 

Comment by Eric A. Tuttle on August 25, 2015 at 5:25pm

After a Friday and a Monday tumble of 1100 points and a temporary surge of 442 points today but ending another in another drop of 200, to -1300 over Three days, the Chinese devaluation of its currency will result in us paying face value dollars on a debt owed in their currency. I.E. If I owed 1million yen, which once equaled 1 million dollars, after devaluation I might owe 2 million dollars to cover 1 million yen. This is something that these Green companies will be facing. Though this is only an example, something of this nature is happening. The result for China is to strengthen its currency in the global market, the effect for us is a quickening of "The Great Race to the Bottom"

Comment by Pineo Girl on August 25, 2015 at 11:39am

Excellent analysis Gary - It is about time we stopped this foolishness!!

Hannah Pingree on the Maine expedited wind law

Hannah Pingree - Director of Maine's Office of Innovation and the Future

"Once the committee passed the wind energy bill on to the full House and Senate, lawmakers there didn’t even debate it. They passed it unanimously and with no discussion. House Majority Leader Hannah Pingree, a Democrat from North Haven, says legislators probably didn’t know how many turbines would be constructed in Maine."

https://pinetreewatch.org/wind-power-bandwagon-hits-bumps-in-the-road-3/

 

Maine as Third World Country:

CMP Transmission Rate Skyrockets 19.6% Due to Wind Power

 

Click here to read how the Maine ratepayer has been sold down the river by the Angus King cabal.

Maine Center For Public Interest Reporting – Three Part Series: A CRITICAL LOOK AT MAINE’S WIND ACT

******** IF LINKS BELOW DON'T WORK, GOOGLE THEM*********

(excerpts) From Part 1 – On Maine’s Wind Law “Once the committee passed the wind energy bill on to the full House and Senate, lawmakers there didn’t even debate it. They passed it unanimously and with no discussion. House Majority Leader Hannah Pingree, a Democrat from North Haven, says legislators probably didn’t know how many turbines would be constructed in Maine if the law’s goals were met." . – Maine Center for Public Interest Reporting, August 2010 https://www.pinetreewatchdog.org/wind-power-bandwagon-hits-bumps-in-the-road-3/From Part 2 – On Wind and Oil Yet using wind energy doesn’t lower dependence on imported foreign oil. That’s because the majority of imported oil in Maine is used for heating and transportation. And switching our dependence from foreign oil to Maine-produced electricity isn’t likely to happen very soon, says Bartlett. “Right now, people can’t switch to electric cars and heating – if they did, we’d be in trouble.” So was one of the fundamental premises of the task force false, or at least misleading?" https://www.pinetreewatchdog.org/wind-swept-task-force-set-the-rules/From Part 3 – On Wind-Required New Transmission Lines Finally, the building of enormous, high-voltage transmission lines that the regional electricity system operator says are required to move substantial amounts of wind power to markets south of Maine was never even discussed by the task force – an omission that Mills said will come to haunt the state.“If you try to put 2,500 or 3,000 megawatts in northern or eastern Maine – oh, my god, try to build the transmission!” said Mills. “It’s not just the towers, it’s the lines – that’s when I begin to think that the goal is a little farfetched.” https://www.pinetreewatchdog.org/flaws-in-bill-like-skating-with-dull-skates/

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