Why SunEdison's Shares Went Dark Today

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of solar-product maker SunEdison (NYSE: SUNE  ) dropped as much as 29% today after the company reported earnings.

So what: Second-quarter revenue fell 39% to $491.6 million and the company lost $0.19 per share. That compares to estimates of $443.3 million in revenue and a $0.13 loss so the results were mixed based on Wall Street's expectations.  

Now what: This is part of a broader solar sell-off today but it does show weakness in SunEdison's business. The company is still supplying a commodity product to the industry so, until prices improve, investors shouldn't expect higher profits. I'd stay away from this stock for now but watch for improvement in demand, and keep an eye on margins in the systems business, because that's really where the company sees its future.

Interested in more info on SunEdison? Add it to your watchlist by clicking here.


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  • Report this Comment On August 07, 2013, at 3:52 PM, 10HighSigns wrote:

    Here they go again. Yesterday Zain Abbas at the Motley Group said Sun Ed was the only solar to buy! Last month another Mutty Fool suggested Sun Ed was about to "take off" (upwared). The

    Mutleys surely got this one wrong just as five of them did on MGM. I keep asking, "how do these guys keep a business going?" What kind of good advice could they ever have. And, we know Travis was wrong month after month on Melco Crown untilit reach the twenties. These Fools earn their names and they seem to have a house full of them.

  • Report this Comment On August 08, 2013, at 2:46 PM, Kimamarie wrote:

    If you make 10 picks and one of them is correct.You just advertise that one correct call and sell your newsletter. However Ido feel the Fool does a good job of being objective and honest as Marc Hulbert Newsletter verified for us.

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