I’ve looked into the financials of several solar companies and Akeena Solar is by far the worst solar company I’ve checked out based on fundamentals. Akeena Solar is a good example of what not to look for in a stock.
For the last five quarters the net loss of Akeena Solar has grown. In Q1 of 2007 Akeena Solar reported a net loss 930,000. In Q1 of 2008 Akeena’s net loss ballooned to 4.6 million.
To make matters worse, the company is diluting shares like crazy. In Q1 of 2007 the company reported 16.5 million diluted shares. In Q1 of 2008 the company reported 27.8 million shares. That’s a 68% increase in shares. If the company is ever able to report a consistent profit it will not matter because future earnings are currently being offset by extreme dilution.
To add insult to injury insiders of Akeena Solar have been dumping shares.
Increasing losses and heavy dilution are a bad combination. If you are looking to invest in a solar company I would steer clear of Akeena Solar.
Disclaimer: I do not have a position in AKNS.