Thursday, December 3, 2015

Sun Edison [SUNE] first post

Look at the collapse of supposedly "kant miss" stock Sun Edison.  Hey, everyone needs utilities, right?  SUNE has collapse 96% from its peak.  Interesting how the peak of red 4 was exactly the 38.2 fib bounce, hmmm?  Does this action tell you that the price has anything to do with fundamentals or news?  Folks, a collapse was baked into this pie by the on-take of ridiculous amounts of debt which was used to "grow" the business.   Actually, grow is a lie.  Ponzify the business is more truthful. 

DEBT cannot be used to sustainably grow a business once everyone is into the act of taking on debt to grown the business.   Like any pyramid scheme, the first in and the first out are those who make the money.  The late comers are suckers waiting to get fleeced.




But the same thing is true in the stock shorting game and SUNE is more than 30% sold short.  Any hint of inflation at this point will tell investors that SUNE might be able to raise prices and that the inflation will devalue its debt.  That's a lot of short covering folks and we can see what it did to the shares the last time.

Either this will BK or it will make some people a lot of money once commodities bottom.  The world is acting like falling commodity prices are a given, deflation is eternal, blah blah blah.  That is never the case when the money supply is fraudulent.  The dollar is about to peak and then pull back and commodities and utes should bounce aggressively into that.  The charts are saying the same thing IMO.

Since you never know which of these will BK I am building a wide basket of small positions in the commodity space.   Maybe I am off by 1 wave here and SUNE has already bottomed.  But the corruption factor here is high and so I will need to get a lower price before I buy and if that means I miss out on the bounce then fine because my other commodity plays will be going up as well.

Another trolley car will be by in 10 minutes.  Be selective at this point while understanding that the dollar is putting in a 3rd wave peak very soon.



1 comment:

  1. SUNE hit 6.4 earlier today ... a double from your first note on it on news of the extension of the federal tax credit for solars.

    ReplyDelete

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