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dydo

TerraForm Power, Inc. (TERP)

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I think it is both,

Price can be back and the yield even with price up by 50% is relatively good. For me however it would be a trading vehicle.

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Problem here is the association and piling lawsuits. SUNE's collapse will pull the TERP's skirt with it, better prices could be seen to enter. Also lingering could be for months when SUNE is being sorted. 

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Got even more attractive, but both yieldcos will be under pressure from SUNE. At the end bankruptcy of SUNE could have impacts on lending guarantees and covenants for each of them, so after a thought, I am not considering it. 

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I bought a little more TERP.  I do not believe SUNE will be bankrupt within a year--indeed I think there is huge value that is being misunderstood. 

But I am not interested in buying any more SUNE until it stops falling.

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Averaging TERP is a lot more logical action than buying SUNE. I am not seeing SUNE in your portfolio, but you say "more"?

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I would be interested to see a scenario that SUNE is able recover.

I am pretty sure at this point, it is about recovering assets. Bonds, loans, those things will be taken care of first. This is where SUNE yieldcos could be damaged.

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21 minutes ago, odyd said:

Averaging TERP is a lot more logical action than buying SUNE. I am not seeing SUNE in your portfolio, but you say "more"?

I purchased call options on SUNE (Nov. strike price 8 and 8.5) a few weeks ago that are effectively worthless.

I've made a bunch of changes to my portfolio over the past few days and felt their residual/stub value of ~$100 (which probably overstates their actual value) or some small fraction of one percent was not worth showing.

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Just saw this. I'm adding here. A bunch of first class PV plants offered on the cheap here. Like odyd said, the BS issues of SUNE does not apply to it's wellcapitalized yieldcos.

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Any idea why GLBL is up while TERP is down (by about same percentage) on the news of closer ties with SUNE (I understand why SUNE is up). Shouldn't Global mirror Power's in reacting to this? 

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Looks like Moody's drop the rating on the debt and lower it more on TERP than GLBL.  For the most part those rating agencies influence value of debt, stirring things up in negative fashion.

Saga continues,

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It appears SUNE has paid $310M against the margin loan used for borrowing on First Wind assets in ratio to TERP's price. The pressure to sell TERP down to force money to escrow should be removed now. If selling some of the Indian assets takes place, and paying margin loan could be a signal money is coming, we could experience some interesting moves here.

SUNE is still risky concept, but more money SUNE can produce, better for TERP.

Stock goes ex-dividend on Nov 27th.

http://biz.yahoo.com/e/151123/sune8-k.html

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TERP looks very attractive at current levels, but picture painted by Moody's doesn't look very good. SUNE CFO becoming CEO of TERP is quite a conflict of interest IMO...on the other hand for Vivint acquisition, I am really sceptical if SUNE will be able to close this and hence the TERP obligation of buying 500MW each year might be not as relevant...also in the current situation I don't think Vivint can even do 500MW in a year...I think TERP debt (trading at 70ct) could be quite interesting at current levels!!

https://www.moodys.com/research/Moodys-downgrades-Terraform-Power-and-Terraform-Global-to-B2-CFR--PR_339505

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50 minutes ago, dk1 said:

SUNE CFO becoming CEO of TERP is quite a conflict of interest IMO

Yes I didn't like this reshuffling at all. It's like they want to prevent TERP from distancing itself from parent. Risk of buying from SUNE at bad terms now. Is this really ok behavior?

 

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16 minutes ago, disdaniel said:

yield is trading around 19% today--which is beyond insane

I'm adding more.

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