Energy & Mining

Real Goods Solar, Inc. (NASDAQ:RGSE) Shining Bright

Real Goods Solar, Inc. (NASDAQ:RGSE)

Real Goods Solar, Inc. (NASDAQ:RGSE) has increased the quantity and quality of their sales force and the numbers have been released to show the strategy as a success since the company’s presentation at the 29th annual Roth conference. Real Goods Solar, Inc. (NASDAQ:RGSE)

Touts itself as “America’s Original Solar Company” and has its roots going back to its founding in 1978 in Northern California. Since then it has expanded its footprint into California, Colorado, Connecticut, Hawaii, Massachusetts, New Hampshire, New Jersey, New York, Rhode Island, and Vermont.

Real Goods Solar, Inc. (NASDAQ:RGSE) has installed over 25,000 solar energy systems in homes, businesses, schools, and government facilities totaling over 260 megawatts of clean energy. The residential solar energy market alone is projected to grow at a 9% rate in 2017 with direct ownership projected to overtake the leasing option for the first time ever. U.S. solar PV capacity is expected to triple over the next five years.

Real Goods Solar, Inc. (NASDAQ:RGSE) has left unprofitable markets and increased the size, and training of their sales force. This was done with an eye to industry customer acquisition expenses which the company deemed too expensive to sustain and become profitable. The most surprising move was to exit the California market which they believed was saturated and suffered from anti-competitive pricing. Currently Real Goods Solar, Inc. (NASDAQ:RGSE) is the only publicly listed, residential solar company that is debt-free.

The company increased their sales force from the end of 2016 when they had six managers and 21 sales professionals to eight managers and 36 sales professionals. That move resulted in Q1 2017 sales of over $3 million compared to Q42016’s sales figure of $2.56 million. At the same time, their number of construction and support personnel actually dropped by one – from 72 to 71.

RGSE share prices have responded brilliantly. YTD RGSE shares have appreciated over 357%. Volumes for today’s trading have been heavy. RGSE has an average daily trading volume of 1.44 million but by 3 PMEST over eight million shares have traded. For some, a prime attraction is that despite that recent over-performance of the shares, the relative strength number for RGSE stands at just 50 – well below any “overbought” signal which may indicate much more upside is to come.

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

About the author: Marc has a degree in economics and a MSc. in Finance. Over his 20-year career, Marc has worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.

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Marc has a degree in economics and a MSc. in Finance. Marc worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.

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