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TerraForm Power, Inc. (TERP)

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On 11/24/2015, 2:23:36, explo said:

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?

 

Explo,

If this is a concern, what makes yo buy? Thanks in advance.

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I still believe that yieldcos were a way of salvaging assets created by a now broken company. It's hard for me to see these big publicly traded companies with many recent offerings on Nasdaq to be pulled down in a parent BK. Too much of a scandal, which would undermine the whole idea of listing subs. SEC and stock exchanges etc. might be stakeholders in how this play out.

Adding one more independent director for majority independents on the board might compensate for SUNE CFO becoming TERP CEO. Maybe that move was a gift of afterlife to the CFO (I'm sure he must have been under stress being resposible for SUNE finances).

Also I don't expose much on a single stock anymore, so a failed double down bet is not a big issue. My portfolio can carry losing bets. Hopefully I make more winning than losing bets though.

 

 

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I see several people dipping into TERP in here, even with the major down days it has.  can someone tell me the reasons they are interested in it ?   whats the fundamental story here ?

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I see several people dipping into TERP in here, even with the major down days it has.  can someone tell me the reasons they are interested in it ?   whats the fundamental story here ?

I added TERP (hesitantly) solely because of the downgrade today.

Trying to take advantage of the panic sell the downgrade caused, and hoping it pops tomorrow.

Gulp.

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Primarily the ~19% dividend yield, secondarily lots of quality solar and wind generating assets in the US selling for ~$0.50 on the dollar. 

I am also counting on SUNE walking away from Vivint--that has to be the stupidest move in solar this year.

Nixing the deal would boost both companies (SUNE and TERP) 50% overnight imo

TERP lists $5/cash and $15 book value, admittedly market doesn't care about that right now.  I have been wrong before about solars, but this looks like a slam dunk investment to me.

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5 minutes ago, disdaniel said:

Primarily the ~19% dividend yield, secondarily lots of quality solar and wind generating assets in the US selling for ~$0.50 on the dollar. 

I am also counting on SUNE walking away from Vivint--that has to be the stupidest move in solar this year.

Nixing the deal would boost both companies (SUNE and TERP) 50% overnight imo

TERP lists $5/cash and $15 book value, admittedly market doesn't care about that right now.  I have been wrong before about solars, but this looks like a slam dunk investment to me.

Thank you all for your input

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18 minutes ago, disdaniel said:

Primarily the ~19% dividend yield, secondarily lots of quality solar and wind generating assets in the US selling for ~$0.50 on the dollar. 

I am also counting on SUNE walking away from Vivint--that has to be the stupidest move in solar this year.

Nixing the deal would boost both companies (SUNE and TERP) 50% overnight imo

TERP lists $5/cash and $15 book value, admittedly market doesn't care about that right now.  I have been wrong before about solars, but this looks like a slam dunk investment to me.

 

Disdaniel, thanks for your input. How much of TERP's $5/cash be affected if SUNE goes BK? 

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6 hours ago, lepv123 said:

 

Disdaniel, thanks for your input. How much of TERP's $5/cash be affected if SUNE goes BK? 

You have asked this question again. TERP's cash is not SUNE's it cannot be used to pay SUNE debt's and vice versa. TERP is a gross profit producing company with more cash than parent company today.

SUNE may continue to sell projects to TERP, but I see no reason to abuse pricing mechanisms by SUNE. It would be simply stupid. Logically well treated yieldco, unchanging dividend policy will provide calm waters for yieldco growth.

Read this article about Abengoa Yield. Both yieldcos are independent companies. I prefer TERP as they have larger dividend and they have North American assets over GLBL.

http://www.bloomberg.com/news/articles/2015-11-25/as-abengoa-struggles-abengoa-yield-makes-plans-for-future?cmpid=yhoo.headline

TERP has no reason to fold. I am not sure how UBS assigned them $6 per share, but this reminds me an ignorance of the RBC analyst saying that FSLR was a $30 stock. The world is full of idiots everywhere and they play games for other people.

I feel uncomfortable about obligations made by SUNE, but I see no reason for TERP to have a problem live on.

My only concern is that dividend could be lowered as the yield is impossibly high. Is this necessary? Absolutely not, but SUNE patronage has not been particularly keen in some places like Vivint. 

The situation reminds me credit crisis of 2008 and secularized mortgage companies. Some had died, but some recovered and went ballistic in turns. When I look at TERP the balance sheet I see no risks.

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Dividend is payable to shareholders on record Dec 1, payable Dec 15

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