Best Small Cap Stocks to Trade

Small Cap Stock Alerts in Real Time | No one provides consistent winners like Broad Street!

May 09 2016

Due Diligence Report: Upcoming Earnings are Posing to be a Win (NASDAQ: SUNW)

 

Summary

Sunworks, Inc., formerly Solar3D, Inc., incorporated on January 30, 2002, provides photo voltaic (PV) based power systems for the residential, commercial and agricultural markets in California and Nevada. The Company, through its operating subsidiaries, designs, arranges financing, integrates, installs and manages systems ranging in size from 2 kilowatt (KW) for residential loads to multi megawatts (MW) systems for larger commercial projects.

The Company’s commercial installations include office buildings, manufacturing plants, warehouses and agricultural facilities, such as farms, wineries and dairies. The Company provides a range of installation services to its solar energy customers, including design, system engineering, procurement, permitting, construction, grid connection, warranty, system monitoring and maintenance. The Company has installed over 850 systems in California and Nevada. The Company purchases solar panels and materials directly from multiple manufacturers. The Company arranges financing with various private and public sources, including property assessed clean energy (PACE) programs, which are programs that involve both municipal governments and private financing companies that allow property owners to receive upfront funding for renewable energy projects, and Farm Credit financing offered by a network of lending institutions.

Sunworks, Inc. has a current market capitalization of $53.16 M with 19.76 M outstanding shares. Its daily average volume traded is 0.12 M shares.

Key Indicators (FYE 2015)                                               Performance (6 months)

Shares Outstanding 19.76 M
Revenue 53.71 M
Gross Profit 17.05 M
Net Income (basic/diluted) 1.06 M
Cash and Short-term Inv 12.04 M
Total Debt 3.86 M

 

 

sunw chart

 

 

Recent News and Analysis:

In recent news, the company announced today that it will report financial results for the quarter ended March 31, 2016 before the market opens on Wednesday, May 11, 2016. Immediately following the announcement of earnings, the company announced that its Agricultural and Commercial Divisions have been awarded approximately $10.1 million in commercial based solar solution orders ranging from 19kW to 768kW since the end of January 2016. These awards support the company’s current growth outlook and are included within their previously issued guidance. These contracts from new customers represent additional penetration by Sunworks into the SMB market which historically had not been addressable given the economics of solar integration and budget limitations of smaller businesses. However, with the introduction of new financial solutions by an increasing number of commercial and farm focused lenders, the SMB market is increasingly turning to solar as a way to reduce energy costs and lower carbon profiles.

“We are seeing a new market segment open up and significant opportunities for small- to mid-sized businesses that require less than 1 Megawatt of power offset to take advantage of solar,” said Abe Emard, COO at Sunworks. “The costs for solar integration have been significantly reduced and with innovative new financing solutions available through Sunworks and our financial partners, solar is more economically viable. We are designing innovative custom solar solutions for motels, golf courses, animal shelters, storage units, and farms throughout California and Nevada.” Jim Nelson, Sunworks CEO added, “Empowering small business owners with highly efficient and affordable solar solutions is good for the environment and the economy. Sunworks is well positioned to capitalize on growth opportunities in this emerging market segment and is focused on driving organic growth in both its residential and commercial divisions.”

Few analysts cover the stock with only recommendation and estimates for Q2 2016 earnings of $0.05 EPS and none for Q1. However, with the expected 2016 guidance and management exceeding guidance in FYE 2015, it is likely to expect earning for Q1 2016 to come in between $0.05 – $0.10 EPS. This would be the biggest win for the company to date. Management was finally able to turn a profit in Q4 2015 on $17M revenue and $1.06 M in net income.

Most investors wonder why the company that has for the past 6 months been spitting out tremendous news, been falling in price and has lost 27% year to date. Well the reason is promissory notes issued during the startup of the company. These notes allow their holders to convert notes into shares at $0.52 per share. In Q1, the company made a change in the notes to financials that resulted in more dilution. What this change did was extend the already expired conversion price of $.52 a share from March of 2015 to March of 2016, essentially resurrecting the more deleterious terms from the past. If this provision had not been extended the conversion price would have been 50% of the share price, which given the prices this month would have been $1.25 give or take a few cents. This change allowed the note holders to convert at more favorable prices (for them) sometime in the last two weeks. The conversion caused an additional 1,442,308 shares of dilution right before the big earnings announcement in Q1. Had the company not changed the provision then the dilution would have been a still substantial 500,000 shares ($750,000 note/$1.50 conversion price). Based on the price of the stock today, the 1,442,308 new shares caused about $4.3 million worth of dilution on a stock that has struggled to keep up any volume. Conversely, if they had not changed this provision, and retained the more favorable terms already in the contract, there would have only been $1.5 million worth of dilution. No assets or value were added to the company as a result of this decision to dilute, as far as I know.

Conclusions:

The incremental dilution as a result of this one inexplicable change caused more dilution to shareholders than the amount of money the company made in profit the entire year. I use the term inexplicable because there is in my mind no conceivable business justification for this change. The change only benefited the holders of the note used for the acquisition of Sunworks. To conclude, I give a strong recommendation to stay away from this stock if you are looking for an ordinary investment. There are complicated event-based trades that can be made successfully, but they carry extreme risk and can only be done with a small position size due to the normally thin volume.

Sources:                                                                                                     

  1. http://www.reuters.com/finance/stocks/companyProfile?rpc=66&symbol=SUNW.O
  2. http://stockcharts.com/h-sc/ui?s=SUNW&p=D&b=5&g=0&id=p19109855077
  3. http://finance.yahoo.com/news/sunworks-expands-presence-fast-growing-123000277.html
  4. http://www.google.ca/finance?q=NASDAQ%3ASUNW&hl=en&gl=ca&ei=P0AvV5nTNcTijAHCtIiQCw
  5. http://finance.yahoo.com/q?s=SUNW
  6. http://seekingalpha.com/article/3958779-sunworks-seemingly-solid-earnings-report-shares-drop

 

 

 

 

 


 

Author’s Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it, and I have no business relationship with any company whose stock is mentioned in the article. I reserve the right to sell the redistribution rights to this report for up to two hundred fifty dollars/news source.

The information contained herein is not intended to be investment advice and does not constitute any form of invitation or inducement by Robert Borowski, MSc. to engage in investment activity. Neither the information nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. Securities, financial instruments, strategies, or commentary mentioned herein may not be suitable for all investors and this material is not intended for any specific investor and does not take into account an investor’s particular investment objectives, financial situations or needs. Any opinions expressed herein are given in good faith, are subject to change without notice, and are only current as of the stated date of their issue. Prices, values, or income from any securities or investments mentioned in this report may fluctuate, and an investor may, upon selling an investment lose a portion of, or the entire principal amount invested. Past performance is no guarantee of future results. Before acting on any recommendation in this material, you should consider whether it is suitable for your particular circumstances and, if necessary, seek professional advice.

DISCLAIMER

Broad Street Alerts has compensated the author of this report up to two hundred and fifty dollars for the redistribution rights for a period of up to 30 days.

BroadStreetAlerts.com is a wholly owned subsidiary of Small Cap Specialists LLC, herein referred to as SCS LLC.

Our reports/releases are a commercial advertisement and are for general information purposes ONLY. We are engaged in the business of marketing and advertising companies for monetary compensation. We have not been compensated in any form by any entity for this report. Never invest in any stock featured on our site or emails unless you can afford to lose your entire investment. The disclaimer is to be read and fully understood before using our services, joining our site or our email/blog list as well as any social networking platforms we may use.

PLEASE NOTE WELL: SCS LLC and its employees are not a Registered Investment Advisor, Broker Dealer or a member of any association for other research providers in any jurisdiction whatsoever.

Release of Liability: Through use of this website viewing or using you agree to hold SCS LLC, its operators owners and employees harmless and to completely release them from any and all liability due to any and all loss (monetary or otherwise), damage (monetary or otherwise), or injury (monetary or otherwise) that you may incur. The information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of the available data. SCS LLC encourages readers and investors to supplement the information in these reports with independent research and other professional advice. All information on featured companies is provided by the companies profiled, or is available from public sources and SCS LLC makes no representations, warranties or guarantees as to the accuracy or completeness of the disclosure by the profiled companies. None of the materials or advertisements herein constitute offers or solicitations to purchase or sell securities of the companies profiled herein and any decision to invest in any such company or other financial decisions should not be made based upon the information provide herein. Instead SCS LLC strongly urges you conduct a complete and independent investigation of the respective companies and consideration of all pertinent risks. Readers are advised to review SEC periodic reports: Forms 10-Q, 10K, Form 8-K, insider reports, Forms 3, 4, 5 Schedule 13D. SCS LLC is compliant with the Can Spam Act of 2003. SCS LLC does not offer such advice or analysis, and SCS LLC further urges you to consult your own independent tax, business, financial and investment advisors. Investing in micro-cap and growth securities is highly speculative and carries and extremely high degree of risk. It is possible that an investor’s investment may be lost or impaired due to the speculative nature of the companies profiled.

The Private Securities Litigation Reform Act of 1995 provides investors a ‘safe harbor’ in regard to forward-looking statements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance are not statements of historical fact may be “forward looking statements”. Forward looking statements are based on expectations, estimates, and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward looking statements in this action may be identified through use of words such as “projects”, “foresee”, “expects”, “will”, “anticipates”, “estimates”, “believes”, “understands”, or that by statements indicating certain actions & quote; “may”, “could”, or “might” occur. Understand there is no guarantee past performance will be indicative of future results.

In preparing this publication, SCS LLC has relied upon information supplied by its customers, publicly available information and press releases which it believes to be reliable; however, such reliability cannot be guaranteed. Investors should not rely on the information contained in this website. Rather, investors should use the information contained in this website as a starting point for doing additional independent research on the featured companies. The advertisements in this website are believed to be reliable, however, SCS LLC and its owners, affiliates, subsidiaries, officers, directors, representatives and agents disclaim any liability as to the completeness or accuracy of the information contained in any advertisement and for any omissions of materials facts from such advertisement. SCS LLC is not responsible for any claims made by the companies advertised herein, nor is SCS LLC responsible for any other promotional firm, its program or its structure.

SCS LLC is not affiliated with any exchange, electronic quotation system, the Securities Exchange Commission or FINRA. SCS LLC is not a Broker/Dealer and does not engage in high frequency trading.

 

 

 

Written by broadAdmin · Categorized: Uncategorized

Privacy Policy and Disclaimer

Transparency is very important to us.

Please view our full privacy policy and disclaimer below.

 

 

 

Privacy Policy and Disclaimer
Your Consent
By using our site, you consent to our online privacy policy and disclaimer.
Do we disclose any information to outside parties?
We do not sell your information to anyone.
What information do we collect?
We collect information from you when you subscribe to our newsletter or fill out a form on one of our social platforms. This includes your email address and or mobile phone number.
When registering on our site, as appropriate, you may be asked to enter your: e-mail address and or mobile number.
What do we use your information for?
When we collect your email or mobile number it is used for one purpose to send you the information you requested about small cap stocks. Please read our disclaimer carefully before viewing our emails.
Your information, whether public or private, will not be sold, exchanged, transferred, or given to any other company for any reason, other than our CRM providers for the express purpose of delivering the information on stocks that you requested.
We send periodic emails.
The email address you provide may be used to send you information, the small cap stock reports you requested, respond to inquiries, and/or other requests or questions.
How do we protect your information?
We implement a variety of security measures to maintain the safety of your personal information when you enter, submit, your email address. We use secure third parties to send email and SMS messages to you.
Because we value your privacy, we have taken the necessary precautions to be in compliance with the California Online Privacy Protection Act.
Online Privacy Policy Policy
This online privacy policy applies to information collected through our website and social media platforms.
Contacting Us
If there are any questions regarding this privacy policy or disclaimer you may reply to this email.
Disclaimer
BroadStreetAlerts. com is a wholly owned subsidiary of Small Cap Specialists LLC, herein referred to as SCS LLC.
This website / media webpage is owned, operated, and edited by Small Cap Specialists LLC. Any wording found on this website / media webpage or disclaimer referencing to “I” or “we” or “our” or “SCS LLC” refers to Small Cap Specialists LLC. This website / media webpage is a paid advertisement, not a recommendation nor an offer to buy or sell securities. Our business model is to be financially compensated to market and promote public companies. By reading our website / media webpage you agree to the terms of our disclaimer, which are subject to change at any time.
Our reports/releases are a commercial advertisement and are for general information purposes ONLY. We are engaged in the business of marketing and advertising companies for monetary compensation. Never invest in any stock featured on our site or emails unless you can afford to lose your entire investment. The disclaimer is to be read and fully understood before using our services, joining our site or our email/blog list as well as any social networking platforms we may use. SCS LLC’s business model is to receive financial compensation to promote public companies. To conduct investor relations advertising, marketing and publicly disseminate information not limited to our Websites, Email, SMS, Push Notifications, Influencers, Social Media Postings, Ticker Tags, Press Releases, Online or Phone Interviews, Podcasts, Videos, Audio Ads, Banner Ads, Native Ads, Responsive Ads. This compensation is a major conflict of interest in our ability to be unbiased regarding. Therefore, this communication should be viewed as a commercial advertisement only. Note, we periodically conduct interviews and issue stock alerts that we are not compensated for, these are purely for the purpose of building our brands. We have not investigated the background of the hiring third party or parties. The third party, profiled company, or their affiliates likely wish to liquidate shares of the profiled company at or near the time you receive this communication, which has the potential to hurt share prices. Frequently companies profiled in our alerts may experience a large increase in volume and share price during the course of investor relations marketing, which may end as soon as the investor relations marketing ceases. Our emails may contain forward-looking statements, which are not guaranteed to materialize due to a variety of factors. We do not guarantee the timeliness, accuracy, or completeness of the information on our website / media webpage. The information in our website / media webpage is believed to be accurate and correct but has not been independently verified and is not guaranteed to be correct.
Please Note: SCS LLC and its employees are not a registered investment advisor, Broker Dealer or a member of any association for other research providers in any jurisdiction whatsoever.
Release of Liability: Through use of this website viewing or using you agree to hold SCS LLC, its operator’s , owners and employees harmless and to completely release them from any and all liability due to any and all loss (monetary or otherwise), damage (monetary or otherwise), or injury (monetary or otherwise) that you may incur. The information in our website / media webpage is believed to be accurate and correct but has not been independently verified and is not guaranteed to be correct. The information is collected from public sources, such as the profiled company’s website and press releases, but is not researched or verified in any way whatsoever to ensure the publicly available information is correct. Furthermore, SCS LLC often employs independent contractor writers who may make errors when researching information and preparing these communications regarding profiled companies. Independent writers’ works are double-checked and verified before publication, but it is certainly possible for errors or omissions to take place during editing of independent contractor writer’s communications regarding the profiled company(s). You should assume all information in all of our communications is incorrect until you personally verify the information, and again are encouraged to never invest based on the information contained in our written communications. The information in our disclaimers is subject to change at any time without notice. Some of our claims regarding gains could be based on intra-day, pre-market and after-hours trading data.
All information on featured companies is provided by the companies profiled or is available from public sources and SCS LLC makes no representations, warranties or guarantees as to the accuracy or completeness of the disclosure by the profiled companies. None of the materials or advertisements herein constitute offers or solicitations to purchase or sell securities of the companies profiled herein and any decision to invest in any such company or other financial decisions should not be made based upon the information provide herein. Instead SCS LLC strongly urges you conduct a complete and independent investigation of the respective companies and consideration of all pertinent risks. Readers are advised to review SEC periodic reports: Forms 10-Q, 10K, Form 8-K, insider reports, Forms 3, 4, 5 Schedule 13D.
SCS LLC is compliant with the Can Spam Act of 2003. TNS LLC does not offer such advice or analysis, and SCS LLC further urges you to consult your own independent tax, business, financial and investment advisors. Investing in small and micro-cap growth securities is highly speculative and carries an extremely high degree of risk. It is possible that an investors investment may be lost or impaired due to the speculative nature of the companies profiled.
The Private Securities Litigation Reform Act of 1995 provides investors a safe harbor in regard to forward-looking statements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance are not statements of historical fact may be forward looking statements. Forward looking statements are based on expectations, estimates, and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward looking statements in this action may be identified through use of words such as projects, foresee, expects, will, anticipates, estimates, believes, understands, or that by statements indicating certain actions & quote; may, could, or might occur. Understand there is no guarantee past performance will be indicative of future results.
In preparing this publication, SCS LLC has relied upon information supplied by its customers, publicly available information, and press releases which it believes to be reliable; however, such reliability cannot be guaranteed. Investors should not rely on the information contained in this website. Rather, investors should use the information contained in this website as a starting point for doing additional independent research on the featured companies. The advertisements in this website are believed to be reliable, however, SCS LLC and its owners, affiliates, subsidiaries, officers, directors, representatives and agents disclaim any liability as to the completeness or accuracy of the information contained in any advertisement and for any omissions of materials facts from such advertisement.
SCS LLC is not responsible for any claims made by the companies advertised herein, nor is TNS LLC responsible for any other promotional firm, its program or its structure.
SCS LLC is not affiliated with any exchange, electronic quotation system, the Securities Exchange Commission or FINRA. SCS LLC is not a Broker/Dealer and does not engage in high frequency trading.

 

 

Most Publicly Traded Companies Engage in Some Form of Paid Media, Investor Relations and Advertising. 

Copyright © 2023 · Broad Street Alerts · All Rights Reserved

Manage Cookie Consent
We use cookies to optimize our website and your experience.
Functional Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
Manage options Manage services Manage vendors Read more about these purposes
View preferences
{title} {title} {title}