It’s been one downward rollercoaster ride from hell for Sunedison Inc (NYSE:SUNE) shareholders over the last several months as the stock has continued on a downward trend following an array of bad and worse news. The question we ask now is whether or not shareholders should hold out any hope that the stock may make an eventual recovery back to highs seen during the middle of last year. While such a recovery seems insurmountable, given that the stock was trading at over $30 per share back in July of 2015, it’s not unheard of for a stock to make such a move over an extended period of time.
What seems to be the most concerning to shareholders of Sunedison Inc (NYSE:SUNE), however, is the fact that any major rally seems to spur on a subsequent decline to lower lows. Take for example today’s price action. The stock is down more than 15% on the day, after experiencing a gain of more than 100% last week alone. The stock just seems to have no legs, and short sellers seem to jump at any opportunity they have to push shares down even further. While the company’s long term viability is certainly in question, the recent rise in oil prices should have at least had a larger effect on the stock than what we have seen over the last four to five trading days.
It’s entirely possible that this stock will drop below the $1 level. If that happens, a number of investors would likely stay away for quite some time. If, on the other hand the stock can rebound from today’s decline and move over the $2 level, we may begin to see short covering and confidence brought back into the stock. We will be watching shares of Sunedison Inc (NYSE:SUNE) closely over the remainder of the week to see if a possible rally is in the making, or if shorts will ultimately win out.