1. Davide Vioto - MSGF
STOCK SELECTION
GLOBAL FINANCIAL MARKETS
Professor Yee Seng Cheah, Michael

2. Davide Vioto - MSGF
BRIEFLY ON THE COMPANY
• SunEdison, Inc. was founded in 1984 and is headquartered
in Maryland Heights, Missouri.
• It develops, manufactures, and sells silicon wafers to the
semiconductor industry.
• The company operates through three segments: Solar
Energy, TerraForm Power, and Semiconductor Materials.
Sector Technology
Industry Semiconductor -
Integrated Circuits
Source: finance.yahoo.com

3. Davide Vioto - MSGF
PRICE HISTORICAL TREND
Source: finance.yahoo.com
The stock price of SunEdison Inc went up 65.55% over the last 200
days. On a technical level the stock has a Exponential Moving
Average (EMA) of 29.12, this puts the price of the stock at +2,33%
away from that average. This distance is been also around 20% in
particular moments.

4. Davide Vioto - MSGF
KEY STATISTICS
Source: finance.yahoo.com
• We can compare the key statistics of SUNE with the Industry:
SUNE Industry
Qtrly Rev Growth -0.05 0.15
Gross Margin 0.09 0.44
EBITDA -80.10M 17.23M
Operating Margin -0.19 0.04
Net Income -836.60M N/A
EPS -3.48 0.22
P/E N/A 31.05
PEG (5 yr expected) -6.19 0.90
P/S 3.32 2.62

5. Davide Vioto - MSGF
KEY STATISTICS
Source: finance.yahoo.com
• The company is underperforming compared to the
(Semiconductor - Integrated Circuits) Industry.
• The main statistics are: its negative EPS and PEG, against
positive value for both in the Industry; its negative EBITDA
and Operating Margin (both positive in the Industry).
• Because of the negative EPS, it is not possible to compute
SUNE’s P/E to compare with the Industry.
• SUNE has a Beta of 3.96; It means a higher volatility
compared to the reference index (NASDAQ).
• SUNE is underperforming compare to the Sector as well.

6. Davide Vioto - MSGFSource: thestreet.com
• No significant bullish trends noted in growth and profitability from
income statement analysis.
• Revenue has declined at an average rate of 3.3% over the last 3 years.
• SunEdison reported a loss of 115.2% in 2015-Q1.
• Current Operating margin (or operating profit margin) of -67.2% has
fallen by 52.9% over last year's Q1 and it is 50.9% lower than the 3 year
average operating margin.
• SUNE stock has a high debt of 9161 million with D/E ratio of 6.3.
• It has a negative ROE of 96.7% and a negative Free Cash flow margin
of 114.6%.
• SUNE stock is trading at a price to sales ratio (PS ratio) of 3.32 against
the industry average (Electronics-Semiconductors) of 2.62.
KEY STATISTICS

7. Davide Vioto - MSGFSource: finance.yahoo.com
SUNE INVESTMENT STRATEGY
• All the aspects analysed in the previous slides reccommend a short-
position on SUNE.
• In the last 3 month the Price of SUNE is swung, assuming the
minimum value at 27.97 and the maximum value at 32.25.
• The short-position needs to be opened with a selling-price not below
29.91.
• I decided to fix the stop loss up 12% the price of 29.91; because the
fluctuation of SUNE price never exceeded 32.25. If the price will
exceed 33.50 the position needs to be closed with a loss of -3.95.
• The buying-price to cover the short-position should be down 14% the
price of 29.91. If the price of SUNE will decrease downside of 25.72
the position needs to be close ensuring a gain of 4.18 per stock.

8. THANK YOU
FOR YOUR ATTENTION!
Davide Vioto | MSGF
dav.vioto@gmail.com
linkedin.com/pub/davide-vioto/b9/31a/4a2