Sunedison Spike On False Rumor Called 'Comical' By This Analyst

Shares of Sunedison Inc SUNE continued trading higher late Monday afternoon after a fake press release spread the rumor that the Rockefeller Brothers Fund was considering a purchase of the beleaguered company. The Rockefeller Brothers Fund later told Benzinga there's "no truth" to the rumor, but that didn't stop the market from buying anyway. Related Link: Sunedison Up 13% On Apparently 'Fake' Takeover PR According to Gordon Johnson of Axiom Capital Research, the market's reaction to the release was "comical." Further disproving any logic behind the rumor, Johnson said the Rockefeller Brothers Fund is valued at (as of January 1, 2016) just $790 million, a figure that would be inadequate to fund a buyout of Sunedison at a premium to its current market cap. "Keep in mind that this is a foundation, which is set up to last into perpetuity," Johnson continued. "So… why would they (i.e., the Rockefeller Brothers Fund) be investing, nearly all of their assets, in a distressed security? At risk of stating the obvious, looking at the risk/reward, this does not appear to be within their acceptable risk profile." Sunedison stock is up about 9 percent, selling off several percentage points after Rockefeller told Benzinga the rumor isn't true.