Real Goods Solar, Inc. (NASDAQ:RGSE)
Real Goods Solar, Inc. (NASDAQ:RGSE) stock is up almost 9% as the as the stock attempts, for the fifth time this month, to close over $2.50. Volume is heavy today – over 4.2 million shares have traded by 11 AM EST which is almost nine times the listed daily average.
Last Thursday, October 26, Real Goods Solar, Inc. (NASDAQ:RGSE) announced that it had been selected by Solarize North Haven, a community-based residential solar purchasing cooperative, to bring solar electricity to homes and businesses in North Haven, Connecticut.
Solarize North Haven is a community-supported buying program that offers discounted group pricing, town-wide education and outreach support, as well as high quality equipment at reduced pricing and flexible financing to significantly reduce the cost of solar for North Haven’s approximately 8,600 households. The campaign and sign-up period begins November 16, 2017 and will run through April 5, 2018.
History of 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 Performance
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. 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.
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: 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.