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Why Is SunEdison (SUNE) Stock Up 70% Today?

In the least surprising news ever, SunEdison SUNE is yet again grabbing headlines Tuesday. The embattled solar stock finally has some good things to report, and shares of the company have skyrocketed over 70% as a result.

Interestingly enough, investors are pleased with the news from SunEdison today not because it was great, but because it wasn’t as bad as it could have been. According to an SEC filing, an internal probe of the company found that while its accounting practices were “overly optimistic,” there was no evidence of actual fraud.

Sounds a little crazy right? People are really happy because it looks like SunEdison just has really bad accountants, not criminal ones. This is the type of news that brings momentary relief to a company on the absolute brink of bankruptcy.

The probe, which was conducted by independent board members and an audit committee, did, however, ridicule the company’s management for lacking "sufficient controls and processes" while forecasting cash flows.

On another note, SunEdison also appears to be on the verge of liquidizing some of its assets. According to Reuters, SunEdison is in talks to sell its minority stakes in its Indian solar projects to Finland-based Fortum.

SunEdison has about 600 MW of projects in India, with plans to build an additional 1,700 MW over the next year. Fortum is a state-controlled entity in Finland.

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