Goldman Deal Fails to Stop Sunedison Inc's (SUNE) Bleeding

Sunedison Inc (SUNE) is struggling, despite its recently announced tie-up with Goldman Sachs Group Inc (GS)

by Alex Eppstein

Published on Aug 18, 2015 at 1:55 PM

During the last 24 hours, Sunedison Inc (NYSE:SUNE) has been all over the news. Last night, the solar company announced it will form a $1 billion clean-power investment vehicle with Goldman Sachs Group Inc (NYSE:GS). This morning, as well, SUNE said it is upping the size of its preferred stock offering to 650,000 shares from 500,000.

Suffice it to say, the headlines are failing to help the security on the charts. At last check, SUNE was down 3.3% at $14.20, after earlier running into its 10-day moving average. In fact, so far this year, the shares have plunged more than 27% -- and recently strung together a dismal five-day stretch.

On the Street, sentiment is mixed. On the one hand, analysts are pretty upbeat, with five of seven doling out "buy" or better endorsements -- with not a single "sell" to be found. On the other, over one-quarter of SUNE's float is sold short, representing almost a week's worth of trading, at typical volumes.

Meanwhile, bearish betting has been trending higher at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) in recent months. Sunedison Inc's (NYSE:SUNE) 50-day put/call volume ratio of 0.67 is lingering near levels not seen since February, and registers in the top one-third of all comparable readings from the past year.

A Schaeffer's exclusive!

The Expert's Guide

Access your FREE trading earning announcements before it's too late!



NEW! Explore Schaeffer’s Partners' deals and get connected to top online brokerages with deals tailored exclusively for our readers.  Get answers to your questions regarding transfer fees, commission rates, programs and available discounts related to online trading services.

MORE | MARKETstories

Research Exposes Shortcut to Stock Market Wins
A simple way to stop picking losers, and start cashing in like Wall Street's elite.
Spotify Stock Shaky as Amazon Eyes Podcasts
Amazon's interest in podcasts puts SPOT in focus
AZO Shifts Higher After Earnings
AutoZone's fiscal third-quarter results beat estimates
One New Company Looks Ready To Clean Up On China’s Lithium Mess
Click to continue to advertiser's site.