Bankruptcy Buzz Saws Sunedison Inc (SUNE) in Half

Sunedison Inc (SUNE) is fresh off record lows

by Alex Eppstein

Published on Apr 4, 2016 at 10:41 AM

Sunedison Inc (NYSE:SUNE) has lost almost half of its remaining value today to trade at $0.24, after reports over the weekend suggested the solar firm is preparing to file for bankruptcy protection -- echoing previous rumors -- and that it is being sued by its yieldco, TerraForm Power Inc (NASDAQ:TERP), for breach of contract. Also, as the heavily indebted company looks to sell its India assets, it may have a buyer in the form of Adani Group. Against this backdrop, traders both in and out of the options arena are likely cheering SUNE's downfall.

In the options pits, the stock's 10-day put/call volume ratio at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) stands at 1.08 -- outstripping all but 9% of readings taken in the past year. What's more, SUNE's Schaeffer's put/call open interest ratio (SOIR) registers at 1.08, just 4 percentage points from a 12-month put-skewed peak. In other words, speculative players are more put-heavy than usual.

Options traders aren't the only ones betting on SUNE's downfall. During the latest reporting period, short interest on the stock spiked over 12%, and over half its float is currently sold short. Likewise, roughly 73% of analysts rate the shares a "hold" or worse.

If you've been following Sunedison Inc's (NYSE:SUNE) performance on the charts, this skepticism is anything but surprising. Year-over-year, the stock has lost 99% of its value, and earlier touched an all-time low of $0.20.

Sign up now for Schaeffer's Market Recap to get all the day's big stock movers, must-know technical levels, and top economic stories straight to your inbox.


A Schaeffer's exclusive

TOP STOCK PICKS 2020

Access your FREE insider report before it's too late!


 
 

Partnercenter


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


IRA/401k: The Crash-Proof Retirement Plan
Use gold to protect any IRA, 401(k), or retirement account from a looming financial crisis.
Software Stock Could Have Room to Run
The cloud stock could revisit record highs soon
Ulta Stock Moves Lower on New Coronavirus Measures
Ulta has closed all of its stores until further notice
IRA/401k: The Crash-Proof Retirement Plan
Use gold to protect any IRA, 401(k), or retirement account from a looming financial crisis.