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Bankrupt Solar-LDK, Suntech, SunEdison

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This is nuts. YGE expects to get $138m in "compensation" for their failed Fine Silicon investment: http://finance.yahoo.com/news/yingli-green-energy-plans-restructure-054200136.html

I wonder if note holders will buy this.

 

And there in a nut shell is why the EU and US have import tariffs on Chinese solar products. The fact that this is the second time they have been saved by a last minute cash influx via dubious channels is sickening. Really is destroying the entire industry's credibility. 

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And there in a nut shell is why the EU and US have import tariffs on Chinese solar products. The fact that this is the second time they have been saved by a last minute cash influx via dubious channels is sickening. Really is destroying the entire industry's credibility. 

I sincerely hope they don't get this. Getting some money for selling back the land to government was ok, but likely price was too high.. There's no reason to support Yingli from central point of view (although they are close to BJ and rest close to Shanghai), they've burnt more than a billion while Trina have built hundreds of millions in capital, provincial and city governments have to live with what they have and consquences of failure though, so it is easy to see why they could make bad decisions.

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More trouble on the horizon for SunEdison?

http://finance.yahoo.com/news/investors-asking-tough-questions-yieldcos-194932356.html

It appears that cat is getting more out of the bag for the company, but as usual Bloomberg writers try explain world using wrong terms. SunEdison's troubles are not yieldco problems, and not all yieldcos are equal. Some things quoted in the article lack logic like those below

"Yieldcos behave a lot like other nonbank commodity financial companies "by transforming overly enthusiastic demand for future commodities tomorrow—on account of perceived shortages—into predictable cashflows with which to attract funding for investment in largely overly supplied commodities today," said Izabella Kaminska of FT Alphaville.

The concern now is that funding structures built on that fragile dynamic are apt to collapse should investors come to believe that the financing of latent commodity demand has far outpaced actual growth.

Mhhmmm , yeah what? Along the need to translate this to English, nothing said reflects what solar yield is. It is a fixed income vehicle based on sharing net income in the form of dividend. That is it. The structure to get that income is also simple. The problem is that creating equity or asset base is made with borrowed money by organization which has negative operational dynamic. It does not make money and borrows money to pay for what borrows. This is the essence of problems for SunEdison.

So we come to terms of SUNE collapsing now and we will be living in the yieldco fears, as we used to live in Suntech fears affecting the industry. Perfectly enough Yingli dying out is no longer patched to others and so this condition will come to pass. It is too bad that SunEdison was promoted to represent industry, and was embraced among many by the lunatic Johnson to do so. Now while they beat their chest with mea culpa including moron number one Jim Cramer, they take the entire landscape down as in the world of scarcity, everything is bad when hurt or only one thing is good when happy.

 

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Teams within SunEdison are already looking to sell off portfolios of projects, say other sources within the company.

http://www.greentechmedia.com/articles/read/Layoffs-at-SunEdison-as-Investors-Question-the-Developer

This might give since short term relief.

"Overall, the proposed changes result in an overall reduction of about 30%, 20% being from non-labor expenses and about 10% from headcount reduction. And this process will take some time to complete. Most of the changes will be announced during the fourth quarter with some final steps expected in the first quarter of 2016," reads the memo.

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SUNE will update its strategy. This may reduce costs, but their costs are 100% higher than  their operating earnings.

http://finance.yahoo.com/news/sunedison-announces-global-initiative-optimally-110500245.html

If one look at their cash flow the past year then each quarter they've basically finance the negative operating cash flow with capital raises and their capex with debt raises. Now that they've exhausted capital raising options but still run a horrible negative operating cash flow I'm not sure how they'll stay a float. Can they really cut costs fast enough?

 

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wrong thread for this update... but i would never build a factory in brazil if I ran a company.  So much corruption to deal with day to day and an entitled workforce who's known for everything EXCEPT their productivity.... good for JKS for pulling the plug on that one

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wrong thread for this update... but i would never build a factory in brazil if I ran a company.  So much corruption to deal with day to day and an entitled workforce who's known for everything EXCEPT their productivity.... good for JKS for pulling the plug on that one

Thanks bohdi. I moved it to Jinko topic.

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Except that investors have been begging for SUNE to drop Vivint virtually since it happened, but certainly since the big drop in stock price.

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One would have thought that with the deal nulled and voided, SUNE stock should go up.  It could be that SUNE may have to pay some penalty that caused the stock to drop today. The article states that "that company officials are considering options for restructuring the deal, perhaps by renegotiating the terms, or may simply allow the deal to die by putting it before wary shareholders and hoping they will vote it down."

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Yeah that piece was really just speculation...but I was surprised to see the stock move big in the opposite direction. 

No doubt sune will continue to bounce around--I'm certainly not recommending it, just thought some strangeness worth noting on an otherwise (sadly) typical day in solarlandia.

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an interesting question would be if anyone here would invest in SUNE at some point ?

Frequently those who ask questions, have ready answers.

Why would anyone buy a company, which cannot sustain operating income? What will change?

They build solar plants at the loss, and while they have received little investment income from own yieldcos, future income is not going to correct this.

There is too much risk, but do you consider it yourself?

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an interesting question would be if anyone here would invest in SUNE at some point ?

Ther could be made some money with SUNE, but i would only trade it with SL moving up..

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Frequently those who ask questions, have ready answers.

Why would anyone buy a company, which cannot sustain operating income? What will change?

They build solar plants at the loss, and while they have received little investment income from own yieldcos, future income is not going to correct this.

There is too much risk, but do you consider it yourself?

I understand SUNE is not a good investment from a "fundamental standpoint",  and may only be interesting for a trade.  look at YGE spike now and then, good for a large gain if played right.  Look at SUNE early on when it was rising with the same business losses.    I was just curious,   I dont plan on playing it.

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I understand SUNE is not a good investment from a "fundamental standpoint",  and may only be interesting for a trade.  look at YGE spike now and then, good for a large gain if played right.  Look at SUNE early on when it was rising with the same business losses.    I was just curious,   I dont plan on playing it. p

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Exactly what I saw with YGE when it fell to .33 during window dressing Qtr. It was an apportne time, BK Companies have traded for a higher premium such as STP. so statistically  low chance of loss and better chance to gain? It was an opportune time to pick up shares. I don't see SUNE there yet, I can't update my holdings because I'm not a member.

 

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Einhorn was making a case for SUNE and yet SUNE did not make it today. I do agree with him about yieldcos though, as per my article. They will come back and strong manufacturers owning them will do well.

http://www.themalaymailonline.com/money/article/leading-chinese-solar-cell-maker-launches-rm300m-facility-in-penang

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