Author Archives: Scalper1

SunEdison Bankruptcy Whispers Char SolarCity, First Solar, SunPower

SunEdison ‘s ( SUNE ) inferno continued Wednesday, a day after rumors flared that it might be in debtor-in-possession talks with creditors — often seen as a precursor to a Chapter 11 bankruptcy filing. In the stock market today , SunEdison stock plunged 15% to 1.27 and near its all-time low of 1.21 touched on Feb. 26. Shares have crashed 96% since July 20, when SunEd announced a bid to acquire installer  Vivint Solar ( VSLR ). Shares of Vivint Solar and of SunEd yield company TerraForm Power ( TERP ) fell 11% and 3.8%, respectively. The conflagration also charred SolarCity ( SCTY ), SunPower ( SPWR ) and First Solar ( FSLR ) stocks, which tumbled 10%, 7.6% and 4.3%, respectively. More broadly, IBD’s 21-company Energy-Solar industry group felt the burn, falling a collective 4.3%, its biggest single-day drop since Feb. 11. Axiom Securities downgraded SunEdison stock to a sell rating and lowered its price target to 22 cents from 39 cents. Intraday, Stifel Nicolaus suspended its rating on SunEdison stock. On Tuesday, SunEdison executives declined to comment on “market rumors and speculation.” SunEd is reportedly negotiating with holders of $725 million in second-lien loans, according to a report by Debtwire, cited by Reuters. SunEdison’s woes tie back to its plan to acquire Vivint Solar in July, S&P Global Market Intelligence analyst Angelo Zino told IBD earlier this month, after Vivint scrapped its sale to SunEd on financial worries. At the time, SunEd’s banks were reportedly hedging on the deal. SunEdison and TerraForm Power had just delayed their 10-K filings amid an ongoing investigation into SunEd’s liquidity stance. Now, TerraForm Power faces possible delisting after falling out of Nasdaq compliance, as well as a potential slew of investor class action lawsuits . Four law firms are investigating whether TerraForm Power violated securities laws.

Affymetrix Shareholders To Choose Between Origin, Thermo Fisher

Gene-analysis firm Affymetrix ( AFFX ) said Wednesday that there will be a special shareholder meeting Thursday to discuss a new buyout offer from Origin Technologies, in its bid to woo Affymetrix away from Thermo Fisher Scientific ( TMO ). Late Tuesday, Origin Technologies, which was formed by former Affymetrix employees specifically to take over Affymetrix, raised its bid for the company to $17 a share, and increased its reverse termination fee to $100 million. Last week, Origin had offered $16.10 a share for Affymetrix , which the company’s board rejected over the weekend on the grounds that it was funded solely by debt commitments and wouldn’t be enough to cover the “amounts required to be paid in respect of existing shares, employee equity arrangements, existing convertible notes and credit facility, and anticipated transaction expenses, including a termination fee payable to Thermo Fisher Scientific.” On Wednesday, Affymetrix’s leadership reluctantly admitted that the new offer “could reasonably be expected to lead to a superior proposal,” and so the company is legally required to hold a special shareholder meeting, followed by a vote scheduled for March 31. The board still advocated that shareholders stick with the Thermo Fisher deal, which was $14 a share, or $1.3 billion in cash. Affymetrix stock rose 5.2% to 15.11 in the stock market today . Thermo Fisher stock was flat, at 138.82. Image provided by Shutterstock .

ExOne Drops, But Q4 Earnings Add More Hope To 3D Printer Turnaround

ExOne ( XONE ) late Tuesday became the third 3D printer maker to report better-than-expected earnings for its most recent quarter, adding more hope for a turnaround in the beleaguered industry, even though 3D printer stocks fell Wednesday. After the market close Tuesday, ExOne reported Q4 revenue of $16.2 million, topping expectations of $14.7 million. Revenue rose 2.5% year over year, reversing three straight quarters of revenue deceleration. The company lost eight cents per share minus items, but that was seven cents better than the consensus estimate of analysts polled by Thomson Reuters. 3D Systems ( DDD ) and Stratasys ( SSYS ), the two largest providers of 3D printers, both also  beat expectations  with their Q4 earnings reports. ExOne stock initially rose as much as 7.5% in the stock market today , hitting an 11-month high near 14, but it closed Wednesday down 6.3%, at 12.12. That’s up from an all-time low of 6.61, touched on Jan. 20. Stratasys stock fell 8.6% Wednesday to 23.25, while 3D Systems fell 5.1% to 14.44. 3D Systems and Stratasys had soared over a two-year period that ended as 2013 came to a close. ExOne went public in February 2013 with shares priced at 18. The stock had traded above 70 in early January 2014, then headed downhill. All three gave back their gains starting in 2014 as the promise of 3D printing seemed to fade with disappointing quarterly earnings reports. 3D Systems stock hit its record low of 6 set on Jan. 20. Stratasys touched a record low of 14.88 set on Jan. 26. Some analysts continue to hold a cautious tone on 3D printing stocks. After Stratasys reported its Q4 earnings, Cowen analyst Robert Stone said that its visibility was still limited, though he raised his price target on the company to 23 from 19. 3D Systems, in its Q4 earnings release, said that industry conditions remain challenging. But Terry Wohlers, president of Wohlers Associates, which provides technical, market and strategic analysis on the 3D printer market, is upbeat. He says that corporations, governments and universities have embraced 3D printing technology. “If you look at the industry through the lens of investors and share price, that will give you a distorted view of what’s happening in the 3D printer market,” Wohlers told IBD.