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...

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