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Friday, 01/08/2016 7:10:16 AM

Friday, January 08, 2016 7:10:16 AM

Post# of 36208
Keeping things REAL - Why SunEdison Inc.'s Shares Dropped 50% Today > The Motely Fool The increase in dilution resulting from yesterday's 40% price fall makes this horrible deal even worse. A dilutive offering was definitely necessary for SunEdison to reduce debt, but the cost was much higher than investors expected. According to Bloomberg, analyst Sven Eenmaa at Stifel Financial Corp. estimated that the deal would add $40 million in interest expense for the company and dilute shareholders by 18%.

I don't see any positives from this and SunEdison may have fallen down a hole so deep it can never get out. It won't be able to build projects with debt costs over 10%, and that's the biggest reason investors should avoid this stock for better renewable energy stocks for the foreseeable future.
http://www.fool.com/investing/general/2016/01/07/why-sunedison-incs-shares-dropped-21-today.aspx

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