SUNE
SunEdison Inc
Energy
04/17/2015
Presented
| Date | 04/13/2015 |
| Price | $26.45 |
| Market Cap | $7.20B |
| Ent Value | $14.78B |
| P/E Ratio | N/A |
| Book Value | $0.86 |
| Div Yield | N/A |
| Shares O/S | 272.36M |
| Ave Daily Vol | 10,120,000 |
| Short Int | 30.35% |
Current
| Price | $0.34 |
| Market Cap | $0.11B |
| SunEdison, Inc. develops, manufactures, and sells silicon wafers to the semiconductor industry. The company operates through three segments: Solar Energy, TerraForm Power, and Semiconductor Materials. The Solar Energy segment provides solar energy services that integrate the design, installation, financing, monitoring, operations, and maintenance portions of the downstream solar market. It also manufactures polysilicon, silicon wafers, and solar modules. As of December 31, 2014, this segment had interconnected approximately 974 solar power systems representing 2.35 gigawatts of solar energy generating capacity. The TerraForm Power Segment owns and operates clean power generation assets that sell electricity through long-term power purchase agreements to utility, commercial, and residential customers. The Semiconductor Materials segment manufactures and sells silicon wafers to the semiconductor industry, such as prime and test/monitor wafers; polished wafers for various applications, including memory, analog, RF devices, digital signal processors, and power devices; EPI wafers; and silicon-on-insulator wafers that enhances switching speeds and the performance of RF devices, such as power amplifiers, switches, and sensors. Its wafers are used as starting materials for the manufacture of various types of semiconductor devices, including microprocessor, memory, logic, and power devices. SunEdison, Inc. serves semiconductor device manufacturers, including the memory, microprocessor, and ASIC manufacturers; foundries; national retail chains and real estate property management firms; federal, state, and municipal governments; and utilities. It markets its products and services primarily through a direct sales force, as well as local or regional solar channel partners. The company was formerly known as MEMC Electronic Materials, Inc. and changed its name to SunEdison, Inc. in May 2013. SunEdison, Inc. was founded in 1984 and is headquartered in Maryland Heights, Missouri. |
Publicly traded companies mentioned herein: First Solar Inc (FSLR), SunEdison Inc (SUNE), Sunpower (SPWR), TerraForm Power Inc (TERP)
Highlights
The presenter is long shares of solar/ wind power development company SunEdison (SUNE), and thinks the recent strength observed in the share price (+30% year-to-date) is likely to continue. At ~$27 per share, the risk/reward profile is “heavily skewed in favor of bulls,” in his opinion. Depending on the tweaks that can be made - within reason - to his model (i.e., projected growth of incentive distribution rights (IDR) and LP distributions), he can see upside potential to $40+ with little trouble. “Based on management guidance alone, shares should be worth ~$35,” he added.
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