Author Archives: Scalper1

Expedia’s HomeAway Slapped With Lawsuit By Property Owner

A property owner who is also an alternative-accommodations host has filed a lawsuit in federal court against Expedia ( EXPE )-owned HomeAway. The suit seeks class-action status. The suit is centered around a recent change that HomeAway made to its booking fees, which is how the company makes money. Previously only the owner of the rental property charged travelers a booking fee. Now both HomeAway and the property owner charge fees. The change has frustrated some  home owners and property managers , who are struggling with how they convey the changes to travelers. In the complaint filed in the Western District of Texas federal court, the plaintiff claims that HomeAway’s decision to change the fee structure will cause her monetary damages and that it represented a breach of contract. The suit also claims that HomeAway has violated a range of consumer protection statutes. The lawsuit alleges 10 causes for action in all. HomeAway spokesman Jordan Hoefar said that company policy was not to comment on pending litigation. When asked why the company elected to make the fee change, Hoefar wrote via email that the new fee structure will help the company fund fraud protection, “more integrated advertising and promotions” and other things. Competitor Airbnb also charges travelers booking fees. Airbnb and HomeAway let people rent their homes, or rooms in their homes, to travelers. Expedia online travel rival Priceline ( PCLN ) also offers alternative accommodations . Expedia is set to report Q1 earnings on April 27, after the market close.

SunEdison Chapter 11 Looms After Bankruptcy Loan Talks Confirmed

SunEdison ( SUNE ) acknowledged Friday it’s in debtor-in-possession talks with creditors and will need a $310 million loan to dig through a potential bankruptcy. That sent shares plunging, extending losses in late trading after Reuters reported that an actual bankruptcy filing could occur as soon as Sunday. SunEdison stock dived 36.7% to about 37 cents on the stock market today , dropping to 29 cents late Friday on the Reuters report . The company’s first- and second-lien loan holders entered into confidentiality agreements March 17, a day after SunEd missed the second deadline to file its annual 10-K paperwork. But “the negotiations with respect to such potential financing transactions are still ongoing,” SunEdison cautioned in an 8-K filing. “There can be no assurance that any agreement will be reached.” Debtor-in-possession negotiations are often a precursor to a bankruptcy filing. SunEd yieldcos TerraForm Power ( TERP ) and TerraForm Global ( GLBL ) have separately warned of “substantial risk” that SunEd might seek bankruptcy protection. TerraForm Power and TerraForm Global on Friday  hired AlixPartners as a financial adviser, Bloomberg reported, citing sources. As of Sept. 30, SunEdison had wracked up $11.7 billion in debt. In the March 17 presentation — furnished Friday alongside the 8-K — SunEdison said it planned to focus on core North America, India and Latin America regions, while maintaining growth regions on “hot idle” stance until liquidity improves. SunEd aims to monetize its residential and smaller commercial (RSC) unit and reduce operational expenses to below $400 million. The now-failed Vivint Solar ( VSLR ) acquisition was originally intended to be melded into SunEd’s RSC business. In Q1, SunEdison said it plans to use $779 million in cash, with $481 million spent on projects. As of April 2, SunEdison had 3.7 gigawatts in project investments expected to generate $897 million in proceeds. But it still needs $272 million in future project investments to reach that value. Since October, SunEdison has cut its workforce by 40%, and it is angling for a total 50% reduction, along with a $150 million cut from additional non-labor savings. The firm also completely exited Japan. SunEdison stock had soared 58% on Thursday, when the company released an SEC filing disclosing an audit that showed no evidence of fraud by SunEd executives. But the auditor found wrongdoing by a former non-executive employee involved in the bungled Vivint Solar acquisition talks and an “ overly optimistic culture ” related to projected cash flow. SunEdison noted it terminated the employee upon discovery of the wrongdoing. TerraForm Power fell 7.3% to 9 on Friday. TerraForm Global slid 3.1% to 2.48. Both yieldcos drifted lower late on the Reuters report of a possible Sunday bankruptcy filing by their parent company.

Apple Slices Below 200-Day On iPhone Production Cuts Report

Apple ( AAPL ) stock slid Friday on a report that it will continue its reduced production of iPhones in the April-June period in light of sluggish sales. Nikkei Asian Review said it learned of the extension of lower production from parts suppliers who were notified of the plan. Apple fell 2% to 109.85 on the stock market today , falling back below the 200-day moving average. Shares of Apple chip suppliers Broadcom ( AVGO ),  Cirrus Logic ( CRUS ) and Skyworks Solutions ( SWKS ) traded lower on the news. Broadcom lost 2.1% and Skyworks 2.2%, while Cirrus fell 0.4%. Apple has been dogged by reports of production cutbacks related to slow sales of its flagship iPhone 6S series smartphones. Apple lowered production for the January-March quarter by about 30% from the year-earlier period. And it decided to maintain the reduced output level in the current quarter, Nikkei Asia Review said . Apple has forecast its first year-over-year decline in iPhone unit sales for the March quarter. It is scheduled to report fiscal Q2 results on April 25. On Thursday, investment bank Canaccord Genuity predicted that iPhone sales will decline for three straight quarters before getting a boost from the iPhone 7 launch this fall. RELATED: How Much Will Apple Increase Its Dividend, Stock Buybacks?