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Fellow Solar Power Player Sunedison CEO Very Excited About First Solar/SunPower Deal


With talks of deals happening between major solar power players, Sunedison Inc (NYSE: SUNE) CEO Ahmad Chatila is quite upbeat about the developments, which he feels will influence the stock price of other solar players as well.

Chatila was on CNBC to discuss the performance of the company’s stock and its shareholding.

Oil, Solar Power And Recouped Losses

When asked if Sunedison has recouped losses caused by the fall in oil and subsequent heavily plunged stock price, Chatila replied strongly.

“Yeah, absolutely. We have not recouped at all," Chatila replied. "We have done the First Wind acquisition and we have executed really well on TerraForm, not only the IPO, but also acquisitions. In my view, we are around 25-30 percent undervalued at this moment.”

First Solar/SunPower YieldCo

“If anything, I am very excited about that announcement, because we need more investors to come into this space so that we are more valued,” Chatila said.

“I think as more people come in and there’s more float of various YieldCos, I think we will be recognized more, and our stock would go up. So, I am very excited about it.

“I hope it really succeeds greatly, and I wish there’s more. It’s hard to do a YieldCo. That’s why you have two companies doing it together.”

Related Link: UPDATE: First Solar Posts Higher Q4 Earnings, Misses Revenue Views

High Percentage Of Hedge Funds

When prompted that eight out of 10 of his largest shareholders are hedge funds, Chatila replied that he has no desire to change that in the future, even in exchange for other long-term institutional shareholders.

“No question. In our face today, these are the kind of investors who are willing to take a bet on us. I think at some point when we show consistent cash flow generation, we will go through a 'knee' in our stock price,” Chatila replied, miming a large upward trend.


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