Chris Hill: SunEdison bills itself as the
largest global renewable energy development company, and it is getting smaller by the
day. Shares down more than 60% this week. James, there’s a lot going on, and on top
of all of that. the U.S. Justice Department came knocking on their door with a subpoena. James Early: You know, Chris, I had $0.50
in my pocket today, and I debated between buying some chips from the vending machine
or a share of SunEdison. Ron Gross: (groans) Early: This is just a classic example of a
company that stuffed way too much in its mouth and then couldn’t digest it, and spit it out
and whatever else. I mean, these guys hide debt, they’re getting sued after a failed
acquisition, DOJ investigations, CFO resigned … everything is bad about this company.
It’s just an obvious example of how you don’t have an unlimited runway in renewable energy,
no matter how feel-good of a thing you’re doing. You have to control yourself, and they
didn’t. Hill: So, the fact that the stock has dropped
from the mid-30’s to $0.50 in six months, you don’t look at that and think, “Ooh! Maybe
I’ll take a flier!” Early: Ron, I have to ask — it does seem
like a Ron kind of a stock. Gross: I would like to do a liquidation analysis
or a balance sheet analysis, or just take a quick look at tangible book value, and where
are we in relation to the stock price? Early: Ron, you know much more about this than I do — they’re already entering debtor-in-possession financing. Gross: Oh.
Early: Isn’t that– Gross: Well, that’s different. Early: If you’re an equity holder, you’re
probably going to get wiped out, right? Gross: I didn’t realize we were at that point.
(laughs) Early: You know, Einhorn owns 7% himself,
and Greenlight owns 4%. Hill: How’s that working out?
Early: Apparently not very well.