Real Goods Solar, Inc. (NASDAQ:RGSE) Awarded New Haven Contract

Real Goods Solar, Inc. (NASDAQ:RGSE)

Real Goods Solar, Inc. (NASDAQ:RGSE) shares gained 23.5% after Solarize New Haven selected the solar company to provide solar electricity to homes and business in New Haven, Connecticut. The campaign is to begin on October 18, 2017, and set to run through March 7, 2018. Smart Power, the nation’s leading nonprofit marketing firm, has been selected to market the campaign as it is experienced with community-based energy programs.

“We are thrilled to be joining forces with Solarize Connecticut once again for what we believe will be another successful Solarize program,” said Tom Champlin, Director of sales at RGS Energy. “We will provide our exceptional service to New Haven, supported by our 31 local Connecticut employees, based out of our 10,000 square foot, centrally located, warehouse in Bloomfield.”

Overall, Real Goods Solar, Inc. (NASDAQ:RGSE) shares have suffered in the market. RGSE stock is down by more than 70% for the year. However, the stock has shown some signs of recovery as investors react to the signing of an exclusive domestic and international license agreement with Dow Chemical Co (NYSE:DOW).

Real Goods Solar, Inc. (NASDAQ:RGSE)

RGS Energy – DOW Agreement

Under the terms of the agreement, RGS is to lead commercial activities for the POWERHOUSE solar shingles stem, developed by DOW.  The company is also to handle supply chain management, marketing, sales installation, and warranty.

The POWERHOUSE solar shingles are designed to be aesthetically more pleasing than a traditional solar array.  RGS plans to expand the network of authorized local roofers to achieve lower cost of customer acquisition as it moves to market the shingle.

The company also plans to engage in direct sales with new home builders in a bid to attract more orders. RGS will also expand its call center and digital marketing program to aggressively market the product.

“We believe that RGS is well positioned to optimize the market potential for POWERHOUSE™ 3.0 solar shingles system. The design of POWERHOUSE™ 3.0 solar shingles addresses the critical requirements of customers and installers and achieves a price point that will be very competitive,” said Kirk Thompson, Business Director of Dow Solar.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

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About the author: James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.

Real Goods Solar, Inc. (NASDAQ:RGSE) Gets Boost from Dow Chemical

Real Goods Solar, Inc. (NASDAQ:RGSE)

Real Goods Solar, Inc. (NASDAQ:RGSE) stock is up almost 300% as the market enters the last half of the trading day. RGSE shares hit resistance around $3 in mid-day trading but have since been testing the $3.20 handle. Traders jumped on news from Real Goods Solar, Inc. (NASDAQ:RGSE) that they have signed a licensing deal with Dow Chemical (NYSE:DOW) for their Powerhouse solar shingles. Volumes have been immense. Should the trend continue throughout the day, RGSE shares will trade over 450 times their normal daily average of just over 142,000 – as of this writing, over 32.7 million shares have traded.

Real Goods Solar, Inc. (NASDAQ:RGSE)

DOW Chemical’s Involvement

In 2008, DOW Chemical started an R&D effort to produce shingles that could serve as a solar panel and be directly integrated into a roof. DOW’s first efforts were installed in over 1,000 locations in 18 states. Then, in 2015, DOW switched to a lower cost solar technology which, they believed, would be more commercially viable. The new technology also had the benefit of being more efficient.

DOW Chemical has patented the new technology and it is this technology that is being licensed by Real Goods Solar, Inc. (NASDAQ:RGSE). Real Goods Solar, Inc. (NASDAQ:RGSE) has agreed to absorb all commercial aspects of the deal including supply chain management, marketing, sales, installation and warranty. It is believed that sales will commence in the first half of 2018.

RGSE Stock

Real Goods Solar, Inc. (NASDAQ:RGSE) shares, adjusted for dilution, have been battered over the past two years. In 2016 they were trading over $100 and spent much of 2016 with their shares valued at twice those levels. However, for the past few months the solar energy based company has struggled to keep its share value above $1 – typically the threshold for being listed on the NASDAQ Market.

The past year has seen RGSE stock hit a high of over $86, and a low of $0.60. Performance has, accordingly, been weak as the past year shareholders have seen, prior to today, RGSE stock lose over 98% of its value. Sales growth was impressive from 2012 through 2014 as the figure rose from $44 million to $70.8 million. Unfortunately, the company posted a disappointing $17.4 million for 2016.

As the market cap for Real Goods Solar, Inc. (NASDAQ:RGSE) is under $20 million, no firm yet follows the company and no share ratings are publicly available. But with this deal, that situation could change when revenues start hitting.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $RGSE and receive breaking news on other hot stocks by signing up for our free newsletter!

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.