Stocks Faring Away From Broker’s Choice: TerraForm Global (NASDAQ:GLBL), xG Technology (NASDAQ:XGTI)

Shares of TerraForm Global, Inc. (NASDAQ:GLBL) [Trend Analysis] swings enthusiastically in regular trading session, it a gain of 15.88% to close at $4.93. Terraform Global Inc. (GLBL), an operator of clean energy power plants, said Tuesday that it has agreed to be acquired by Brookfield Asset Management Inc. (BAM, BAM-A.TO), an alternative asset manager, for approximately $787 million in cash. Brookfield will also assume approximately $455 million in net debt.

The deal has an implied total equity value of $1.7 billion and represents an enterprise value of approximately $1.3 billion. Brookfield will assume the role of TerraForm Power’s sponsor and also become the controlling shareholder with 51 percent ownership. Post transaction closing, non-Brookfield shareholders, will hold 49 percent ownership in TerraForm Power.

TerraForm Global owns and operates, or has contracts to acquire, a fleet of 31 wind and solar power plants totaling 952 MW of capacity spread across Brazil, India, China, South Africa, Thailand, Malaysia, and Uruguay. Under the terms of the merger contract, Brookfield will purchase all of the outstanding Class A shares of TerraForm Global for $5.10 per share in cash. Moving forward to saw long-term intention, the experts calculate Return on Investment of -11.70%. The stock is going forward its fifty-two week low with 156.51% and lagging behind from its 52-week high price with 2.60%. GLBL last month stock price volatility remained 3.16%.

xG Technology, Inc. (NASDAQ:XGTI) [Trend Analysis] knocking active thrust in leading trading session, shares a loss of -0.65% to 1.53 with around 268076 shares have changed hands in this session. xG Technology, Inc. (NASDAQ:XGTI) reported that an additional $1.6 million payment of the remaining $6.5 million deferred payment from the acquisition of Vislink. The payment will be made from existing cash and free cash flow sources, as was the case with the $3 million prepayment reported on Feb. 23, 2017. xG has now made early payments totaling $4.6 million against the original promissory note, thereby reducing the remaining balance to $4.9 million. The company does not plan or anticipate any equity raise to pay off the remaining debt. Additional payments against the promissory note will also be made from existing cash and free cash flow sources.

While xG has thus far sought to work with the seller in their cash constrained situation, the Company also reported that any further payments by the contracted due date will be dependent upon the seller’s performance of all of their contractual obligations. The Company continues to work with the Seller to quantify all remaining liabilities that may otherwise impact xG should the Seller not be able to pay them and/or resolve them to the Company’s satisfaction. The stock is going forward its fifty-two week low with 509.56% and lagging behind from its 52-week high price with -69.29%.

Similar, the positive performance for the quarter recorded as 339.53% and for the year was 6.25%, while the YTD performance remained at 13.33%. XGTI has Average True Range for 14 days of 0.14.

 

About Richard Avery

He is a capital projects manager and process design engineer at a large-cap company. He has renowned MBA degree. Before joining SWR, he was a freelance writer for renounce tech websites. He is currently studying for CFP exam. Interests: Tech stocks, Economic Markets, Blue-chips.

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