h/t Palantir; Do you like investing in speculative companies with leverage up the wazoo, complex financial engineering, downside exposure to rising interest rates, backlog that may not materialize, uncertain returns, crazy execution risk and high valuations?
I do! So I have recently started a position in Sunedison Inc. This situation is complex, but my take is pretty simple, I’m investing in a security with about a 5-6% CAFD yield that I expect to grow at minimum 20%/year for many, many years. The YieldCo transactions with TERP and GLBL I expect to yield plenty of upside due to IDRs.
Down 50% in 30-days is a rough ride.
Many value investors have given up on their strategy over the last 15 years amid concerns that value investing no longer worked. However, some made small adjustments to their strategy but remained value investors to the core. Now all of the value investors who held fast to their investment philosophy are being rewarded as value Read More
To some extent I may be late as all the smart money like Leon Cooperman, Dan Loeb, Stephen Mandel, David Einhorn, Glenview and Fir Tree have been in it for a while, but with today’s 25% drop, I feel the situation is more compelling than ever.
Here’s David Einhorn’s 2014 presentation on SunEdison.
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