MOJO traders have been seeing some stunning stock picking strategies. Where are these picks coming from? Hey...it's me ProTrader Mike and I do my research plus a few other tricks.
Why SunEdison Shares Dived More Than 30%
A court hearing is scheduled for Tuesday, Feb. 16.
While markets rallied Friday, solar energy giant SunEdison could not bask in the glow, with shares plunging 31% Friday, ending the day at $1.41 per share.
It was a 14-year low.
This is a complete over-reaction. Again in caps, THIS IS A COMPLETERE OVER-REACTION, A FARCE, A GIFT IN DISGUISE!!
So far this year this same exact issue of disgust has happened. The first one was GoPro. As I called the stock a short play when Dow was 18,000 the stock was trading around $27.00 per share. Once under $25.00 knew it would go test $20.00 and under. At $12.00 per share I became very interested in this stock as it sold off in anticipation of quarterly earnings.
The earnings were as expected = crap and the company stock gapped down to $8.50 and in 3 seconds was at $9.00 and climbing. I went in and started scaling at $9.25 and by the time the stock got to $9.75 I had a nice average of $9.60. Hence the stock climbing the following day after a bogus, I mean well timed (LOL) announcement with Microsoft. What a joke....the firms all took in the shares for inventory, cheap like I did.
Now the next day after the Microsoft news the stock runs $1.50 and the firms clients are now long over $11.00 and the firms made BANK!! The clients can't sell a week later because that would be "churning" an account and your firm won't allow this. So your now a bagholder as the stock is back at low $10.00 per share. Your firm sure made money but you did not.
Now lets take my next trade. Twitter stock is $27.00 my buddy owns it in his IRA and he's been selling covered calls. Now, it drops to $22.00 and the same as GoPro I am waiting patiently for the drp under $20.00. Now, I have done my research on this one and this in no GoPro. You see GoPro is a POS (piece of shit) company with a future only riding the coat tails of a company like Twitter of Facebook. Twitter before earnings got crushed to $13.00 - can you believe that.
As the world of investors are in panic mode, I went in and scaled for a cost of $13.60 as it went right back over $14.00. What another fake out. Ar ethey kidding me, burning the small investor like this while the firms make bank. If you can't see this your on the losing side. If you can then watch what happend to Twitter.
The stock gets accumulated from $13.00 to $14.00 then the firms come out with Buy ratings and Lowered targets from $50 to $30 the sotck is $14.00 - it then flies to $16.00 where it is now and the love of Wall Street. YOU MUST BUY THE HATE AND SELL THE LOVE!!
Now, let's take SUN EDISON... the stock will be my third big winner this year.
The company’s troubles didn’t start with just this lawsuit. Last year, SunEdison along with its yield co, TerraForm, aggravated and confused its investors with a series of acquisitions across the world, including purchases in the U.K. and India.
The aggressive global expansion had bankers increasingly concerned over the company’s liquidity and growing debt — which reached $11.7 billion at the end of the third quarter of 2015. The company was later forced present an expensive plan to clean up its balance sheets.
It culminated in its attempt to acquire the $2 billion Vivint Solar through its yieldco TerraForm.
David Tepper, billionaire manager of the hedge fund Appaloosa Management, sued TerraForm in a bid to stop the acquisition. Tepper owns a 9.5% stake in the yieldco.
That hearing is scheduled for Tuesday, Feb. 16. Since markets are closed Friday, markets may have also reacted to the scheduling.
SunEdison is over 95% below its year-long high of $33.45 from last summer.
LISTEN CAREFULLY...it's down 95% - only has 5% to go downside but upside is 5X as great. With their recent which was $2 billion dollars puts $5.00 value on this as $1.40 is a joke! If I could I would make hostile takeover and buy them for $4.00 right NOW!! Deals that will close this year, including that of Dominion Resources and Vivint Solar, which will extend its solar capacity and expand its footprint on rooftops across the country.
If we take its debt and its complex arrangement with its yieldcos out of the equation, SunEdison has a great business model that has managed to thrive even with little to no profitability. The company has received a further boost from Congress’ recent decision to extend investment tax credits (ITC) for the solar industry.
All that’s needed now is a serious effort by management to restructure the company and rebuild its repute.
Amid all this negativity, there’s one good news piece that should provide investors some solace. A new board member might be able to pull SunEdison out from this ordeal.
One activist investor has jumped in to save SunEdison’s fate. This investor made it to the books of history for actively pushing Apple to payout more in dividends. He went so far as to demand a preferred stock from the tech giant.
I’m talking about billionaire hedge fund manager David Einhorn. He has long been pushing for a seat on SunEdison’s board and has finally made it there.
One of his hedge fund partners from Greenlight Capital now holds a seat on the company’s board. Through her, he might be able to achieve what stockholders have long been yearning for. (Source: “SunEdison And Greenlight Capital Agree To Corporate Governance Initiatives,” SunEdison, January 27, 2016.)
Einhorn’s Greenlight Capital was one of the worst-performing hedge funds of 2015. Three of his big bets—Consol Energy, SunEdison, and Micron Technology—were huge disappointments. But Einhorn may now have a chance to recoup some of those losses.
Now, SUNE stock has not traded so low in three years. That, too, was before Einhorn added the stock to his portfolio. Einhorn now holds a hefty six-percent stake in the company. For him to make money on his bet, he must push for a price higher than his cost. Needless to say, that price will be much higher than the stock’s current price.
Good news is that Einhorn is already on it!
Einhorn is not only pushing for a change in SunEdison’s senior management, but he is also pushing for the sale of some of its assets. The sale will help the company restructure by paying off some of its debt.
It’s also being reported that Einhorn might even be looking for an altogether sale of the company. If the company is able to become a solid acquisition target, the stock is bound to soar. (Source: “Einhorn’s Greenlight seeks sale of solar company SunEdison,” Reuters, January 27, 2016.)
The Bottom Line on SUNE Stock
MOJO really cannot lose on this one. Watch Buy here $1.40 and Sell The $1.50 Covered Calls as stock is at $1.60+ or wait for the stock to get to $1.80 and sell the $2.00 covered calls. Let them either take your stock and keep that premium for a repeat or it stays low and you sit back and collect $.20 cent premiums every 2 weeks. Go MOJO - for more information being part of the team just join here - Click Here