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3 Stocks Getting a Sunedison Inc (SUNE) Lift

Sunedison Inc (NYSE:SUNE) is soaring today, and Vivint Solar Inc (NYSE:VSLR), TerraForm Power Inc (NASDAQ:TERP), and TerraForm Global Inc (NASDAQ:GLBL) are all higher as a result

Apr 14, 2016 at 11:03 AM
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Sunedison Inc (NYSE:SUNE) is soaring today, after the company was cleared of accounting fraud. While this bull gap should be taken with a grain of salt considering the stock is trading at just $0.68 -- even with an 84% pop -- it is having a ripple effect across the alternative energy sector. Among solar stocks that are getting a boost from Sunedison are the firm's former takeover target Vivint Solar Inc (NYSE:VSLR), as well as its yieldco's TerraForm Power Inc (NASDAQ:TERP) and TerraForm Global Inc (NASDAQ:GLBL).

VSLR, for instance, was up as much as 10.7% in early trading before turning slightly lower, last seen at $2.90. Longer term, the shares have surrendered roughly three-quarters of their value year-over-year. What's more, the stock is fresh off an April 5 record low of $2.32.

On the sentiment front, short sellers have been anticipating lower lows for Vivint Solar Inc. Short interest surged 11.6% in the two most recent reporting periods, and now accounts for more than 29% of the security's available float.

TERP, meanwhile, has tacked on 1.6% to trade at $10.18. The stock has been falling in step with SUNE for some time now, down nearly 76% year-over-year. Additionally, today's pop has the equity quickly approaching its 120-day moving average -- a trendline TERP has not traded north of since last July.

Nevertheless, calls are crossing at five times the average intraday rate in TERP's lightly traded options pits, with 1,934 call options on the tape versus 750 put options. More broadly speaking, short-term speculators have shown a preference for calls over puts, per TerraForm Power Inc's Schaeffer's put/call open interest ratio (SOIR) of 1.56 -- in the 73rd annual percentile.

Lastly, GLBL has popped 1.5% to trade at $2.68. The stock could certainly use a boost, considering it's shed more than half its value year-to-date. More recently, the stock has filled a late-March bear gap -- which Sunedison had an unfortunate hand in.

Analysts have been less-than-thrilled with TerraForm Global Inc's performance. In fact, all four brokerages covering the shares maintain a lackluster "hold" rating.
 

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