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JPM Storms Out In Defense Of The Sunny Hedge Fund Hotel: Initiates SunEdison With An "Overweight" And $24 Target
Sometimes you have to work really hard for those "soft dollars."
Readers will recall that last week, one of the stocks that had become a proxy for forced hedge fund liquidations and margin selling, was alternative energy company SunEdison (also known in less polite circles as SunEnron), or SUNE, pronounced Sun-EE which it most certainly wasn't for its prominent hedge fund holders which as we noted previously include the who's who of hedge fund (idea dinner participants), including Greenlight, Third Point, Glenview, Lone Pine, Fir Tree, Steadfast, Omega, York, and Canyon, after plummeting from $33/share to just above $8 in a few months.
Needless to say, these hedge funds are also some of JPM's best buyside clients, and sometime when a client says "we need an upgrade so we can cash out" you have no choice or risk losing millions in soft dollar revenue flow. In this case, the "analyst" staffed with the unpleasant task of building an exit door in the burning Hotel Sun-E-fornia, is JPM's Paul Coster, who moments ago came out with an initiating coverage of SUNE with an "overweight" rating and a price target of $24, about 140% higher than where the stock is trading as of this moment.
From the report:
We are initiating coverage of SUNE with an Overweight rating and a SOTP-based Dec-16 price target of $24.00. SunEdison is a leading developer and owner-operator of wind and solar power assets, executing on massive long-term global growth opportunities, and delivering shareholder value in the form of predictable cash flows from the sale of SPV systems and aggregation of cash flows from its two drop-down YieldCos, TERP and GLBL. Amid liquidity concerns, we are buyers.
Oh you're a buyer of alternative energy, are you with oil at $40 and sliding lower every day? Well, then you will be delighted when Greenlight, Third Point, Glenview, Lone Pine, Fir Tree, Steadfast, Omega, York, and Canyon all line up at your door seeking to sell.
Meanwhile, to all the solar-powered hedge funds stuck in the hedge fund hotel, good luck to all when quietly exiting.
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Storms Out In Defense Of The Sunny Hedge Fund Hotel
OK.....whatever.
Where do I sign up? I especially like the part at the bottom where their revenues declne and their expected loss grows. I'll pay a dollar for that.
German news is exploding with which Jewish group gets the toys on the Treasure Train found in Neiderschlesian.
Russians want in on the shitshow, as does the Polish government.
I would imagine the German government is making all kinds of phone calls attempting to secure documents that could be on the train as well.
If I were a betting man as to who gets what;
1) Jews
2) Poland
3) Germany
4) Russia
In that order. Will be interesting to see if the Amber Room shows back up and Poland uses it to taunt the Russians.
Spoils of war, bankers (ya know what I mean) started it and they lost it in transit...possesion bitchez. Poland must be invaded pronto.
Nuland and McCain are likely on the ground in the main city square of Warsaw passing out cookies and 100 unit FRN Benjamins to insurgents as we speak.
Liar, liar, pants on fire! Solar power, clean energy that is overrated, expensive and government subsidized, just like wind turbine power (which SunEdison also manufactures). If SunEdison makes it back to 16, expect David Einhorn to unload his stake.
I read, saw, heard that the payback for those giant wind turbines is on the magnitude of 100 years.
In 25-50 years, they will be junk, without serious maintenance. Technology will either be far advanced, or we will be in the stone age. But not static.
Imagine maintaining 50-60 year old cars, trucks, warships, etc. Even the turbines at Hoover and Grand C dams have been seriously upgraded.
This whole wind power/ alt energy has to be a massivly subsidized sham, and the players should lose their ass.
Plus, there are MASSIVE amounts of energy and materials on the input side, to construct. When will they get it. There are no free lunches.
Oil and gas, are, by multiples, the best source of portable, storable energy on the planet. If a fair analisys where done, they are probably the least impact per BTU delivered, to the Enviroment.
I really dug into this topic a few years back (i.e. long term energy sources) and Thorium MSRs are the only thing I found that really looked like they could measure up for 1000 years. Everything else is either limited in supply (fossil fuels), unscalable due to geography (hydro and biomass), and so on. Traditional nuclear requires HUGE processing up front, has massive by products, and only a small portion of the fuel is burned before it has to be reprocessed (something no one wants to happen due to proliferation).
The fact of the matter is our species is going to lose its energy subsidy (which is pretty much the modern lifestyle of indoor plumbing, electricity, and transportation) and being a hippie wearing hemp clothes and driving an EV doesn't really accomplish jack shit.
The only way this works in the long run is at MASSIVELY lower population numbers and humans like to screw way too much for that to happen.
Regards,
Cooter
Di- Lithium Crystals. We've known that since 1967.
....or, corn fed peeps on a treadmill.
Hillary wants to throw more money at these losing renewables
What's a YieldCo?
Greenlight Capital Inc. 24,844,588 $743,102 06/30/2015
Vanguard Group Inc. 19,783,042 $591,711 06/30/2015 Wellington Management Group LLP $401,238 06/30/2015 SUNE 12,843,551 $384,150 06/30/2015 NOTE 2 4,089,000 $8,653 06/30/2015 NOTE 2 4,036,000 $8,435 06/30/2015 Third Point LLC $371,931 06/30/2015 SUNE 12,400,000 $370,884 06/30/2015 Call 35,000 $1,047 06/30/2015
Glenview Capital Management LLC 11,403,277 $341,072 06/30/2015 BlackRock Fund Advisors $289,378 06/30/2015 SUNE 9,662,588 $289,008 06/30/2015 NOTE 2 175,000 $370 06/30/2015
Lone Pine Capital LLC 9,663,802 $289,044 06/30/2015
Fred Alger Management Inc. 8,758,755 $261,974 06/30/2015
Fir Tree Inc. 8,700,769 $260,240 06/30/2015
Omega Advisors Inc. 8,473,571 $253,445 06/30/2015
Crooks.
UBS has them as Downside $0, Mid $9, Highside $38.
Their growth plans are either residential solar (meh) and international growth (that really really large country that's devalueing their currency AND India).
I own this stock. FML.
Lights out?
(snikker)
the gubbermint will buy them.
Hey, hey. The Dukes are trying to corner the market. -
They know something. -
Let's get in on it... [/trading places]
"Investors should be aware that JPM may have a conflict of interest that could affect the objectivity of this report."
Need anyone say more...
Clean energy; we prefer the dirty energy because it works better and has a much smaller foot print on the landscape.
Is this the same JPM that saw profits jump 800% from 1915 to 1916 when it financed a slew of illegal arms deals with France and England, in gross violation of the Neutrality Act?
Is it that JPM or a different one?
Who says you can't read the future? Something like this was always going to happen, either that or a planned shillfest on CNBS.
Haus-Targaryen hey bank not train story.... The train may have something way more important than gold and treasure, How about documentation and records of financing the war.... Hey the days of Rothschild sitting on the hill of Waterloo and keeping the civilians out of it are hopefully part of the enlightenment of information age,,,
Wow.
Color me dumbfounded.
I never thought JPM would ever be so desperate as to resort to trying to bail out it's buy side elephants with twisted, contorted bullshit about a company that has decidedly very few chances of ever reaching such an outlandsih price target in the near future.
Can JPM be any more biased in that coverage?
Nice catch Tyler(s).
SOTP price target - Seat of the Pants
Sum of the parts (SOTP) valuations are SO bullshit. I remember using these on the sellside when I couldnt goose the DCF to a 'BUY' price target. Putting my i-banking cap on for a minute, SOTP are bullshit because in breaking up a multi-national company in the real world, you incur 30%+ tax consequences. From the research perspective, the valuation is bullshit because the projected cash flows of a company are based on the current manufacturing/back-office/logistics/human capital footprint. Change ANY of that, and the cash flows change as well. Paul Koster has pimped tech stocks @ JPM since ~2000. He's a survivor, and he does what it takes to stay in the ever-changing mgmt's good graces. . .
I see enterprise around here... for example, a huge complex of condos and shops built along the riverfront in town a few years back... with predictable results... and I wonder 'what are these people thinking?... where are all of those yuppies they think are coming to inhabit their yuppie trap... don't they realize the yuppie is dead?
And I have difficulty relating to the world these folks believe they live in. I am not sure which is the bigger nightmare... there world or mine?
"Needless to say, these hedge funds are also some of JPM's best buyside clients, and sometime when a client says "we need an upgrade so we can cash out" you have no choice or risk losing millions in soft dollar revenue flow."
Bernie Sanders said the business model of Wall Street, is fraud.
"SunEdison (also known in less polite circles as SunEnron)"
UBS kept a strong buy on Enron, until just 4 days before it filed for bankruptcy.
"JPM's Paul Coster, who moments ago came out with an initiating coverage of SUNE with an "overweight" rating and a price target of $24, about 140% higher than where the stock is trading as of this moment."
It fell from a high of 33.45 to a low of 8.10, from 7/20 to 8/26. That is just over a month.
How often does a stock that crashes over 60% in just over a month, jump 140% in 4 months?
I don't know the statistics, but my guess would be, never.
JPM is doing their job..just pushing money..(JPM)