Topic: How To Invest

Hello, Pat: I would appreciate your assessment of the following stock: SunEdison. Thanks.

Article Excerpt

SunEdison, $31.13, symbol SUNE on New York (Shares outstanding: 274.5 million; Market cap: $8.4 billion; www.sunedison.com), develops, finances, installs and operates solar-power plants, delivering electricity to residential, commercial, government and utility customers. The company also supplies other solar products, including polysilicon and solar cells. Photovoltaic cells, also called solar cells, are typically made from polysilicon and absorb the energy in sunlight. This energy excites the electrons in the solar cells, which then break loose and become electricity. Solar manufacturers gather cells into solar panels, which they then connect in large arrays. Polysilicon is an extremely pure form of silicon. Due to the material’s semiconductor-like properties, it’s the basic material used in most solar cells. SunEdison has gained 25% since mid-May 2015, when it announced it was considering converting into a master limited partnership (MLP). MLPs don’t pay income taxes as long as they distribute almost all of the profits they generate to unitholders. Since the MLP doesn’t pay income taxes, investors must pay…