SunEdison Boosted by Einhorn Praise, Speculation on Tepper Stakeby
`We see the potential for a significant recovery in the stock'
Einhorn says selloff overdone, Twitter abuzz with Tepper rumor
SunEdison Inc. got a boost Thursday from signs that hedge fund managers David Einhorn and David Tepper have faith in the renewable-energy developer despite a three-month nosedive for the shares.
The selloff in the world’s biggest renewables developer has "stabilized" as the company allayed fears about its access to capital, Einhorn said on a conference call Thursday. SunEdison has raised additional funds, “identified third parties to buy its projects, and slowed its development pipeline,” said Einhorn, whose Greenlight Capital Re Ltd. was the company’s biggest shareholder as of June 30.
“We see the potential for a significant recovery in the stock price from current levels,” Einhorn said.
The company got a second boost Thursday as speculation swirled on Twitter that Tepper, billionaire owner of Appaloosa Management LP, was about to announce his own stake in SunEdison. Neither Tepper nor SunEdison responded immediately to calls seeking comment.
Shares at SunEdison have plunged more than 70 percent since July 20, the day the Maryland Heights, Missouri-based company announced a $2.2 billion purchase of Vivint Solar Inc. The company has spent more than $4 billion on acquisitions this year.
Chief Executive Officer Ahmad Chatila has responded with a plan to cut his workforce by 15 percent and to scale back planned growth by 20 percent.
SunEdison gained 6.8 percent to $8.33 at the close in New York.