John Leonard, CFA
Special situations, micro-cap, contrarian, CFA

Time For Investors To See The Light: Energy Focus Is Undervalued Relative To Its Peer Group, Patent Portfolio And Growth Prospects

Company overview

Energy Focus (NASDAQ:EFOI) sells energy efficient LED lighting products and turnkey energy efficient lighting solutions.

The products segment provides military, general commercial and industrial offerings. Services provided by the solutions segment include lighting/energy audits, LEED upgrades as well as design, implementation and pre/post upgrade monitoring and measurement.

Successful turnaround is seen but not believed

CEO and Chairman James Tu is probably another CFA charterholder who does not understand the dichotomy between the improving fundamentals and lower stock price. Since the beginning of 2013 (which was a transition year), EFOI has posted strong organic revenue growth and gross margin expansion, reduced operating losses, strengthened the balance sheet, uplisted to NASDAQ and sold a non-core business. Investors have...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details