Wall Street's nightmare stock is tanking again
SunEdison, the solar-energy company that's been collecting scalps across Wall Street since July, was down 10% on Wednesday. That brings its one-year decline to 88%.
There's no real news on the stock, but residential solar company SolarCity reported dismal earnings on Tuesday. SolarCity posted a loss $2.37 a share and lowered its guidance for Q1 2016. It also promised to swing to cash flow positive by the end of 2016, though it's unclear how.
And that's probably what's dragging down SunEdison, a reminder that these solar companies are cash poor. That's what started SunEdison's decline in July: a deal with residential solar company Vivint that revealed that SunEdison might not have as much cash as investors thought.
Also worth noting: SunEdison is the parent company to two yieldcos, companies created to operate solar projects as utilities. TerraForm Power, the one created to manage projects in the US, is down only 1%.
TerraForm Global, however, which was created to manage projects abroad, is also getting killed. The stock is down 10%.
Here's SunEdison for the year:
Yahoo FinanceA year in SunEdison.