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LED bulb/signage maker Revolution Lighting (RVLT -2.5%) falls after TheStreetSweeper takes aim....

LED bulb/signage maker Revolution Lighting (RVLT -2.5%) falls after TheStreetSweeper takes aim. The site warns Revolution "may run out of cash as early as this month" and foresees additional dilution, questions the wisdom of buying commercial LED lighting provider SeeSmart for $20M (losses, declining sales, and related party transactions are cited), and argues RVLT has a weak IP position and is facing strong competition.
Comments (2)
  • jimsteers
    , contributor
    Comment (1) | Send Message
     
    It is always important to look at the underlying motivations of the ownership of companies producing hatchet articles such as this, look no further than the disclaimer at the bottom of the piece: "Important Disclosure: The owners of TheStreetSweeper hold a short position in RVLT and stand to profit on any future declines in the stock price."

     

    In this case the negative slanting of facts along with the alarmist proclamations are designed to negatively affect the stock...look at the timing of the release of this article, in the morning trading period so that it could have the highest impact on the day's trading.

     

    Mr. LaPenta and his executive management team have a stellar track record for maximizing growth and profits for companies they have been affiliated with, among them Lockheed Martin and L-3 Communications...these companies achieved billions in sales.
    Executives of this caliber do not risk their names and reputations by chasing false imagery of profits. LED lighting technologies are at an early launch point for explosive growth.

     

    Tesla is a similar company that received all sorts of criticism during the early stages of its growth, it also has a stock whose valuation is constantly challenged. Yet, it continues to amaze as Tesla's technological and production advancements break new ground. Revolution Lighting is in a similar position. And yes, Tesla did do a seamless secondary stock offering to gain further necessary working capital. That's a standard operating tool available for companies, particularly those in early development stages to effectively move forward and fund expanded growth.

     

    In Tesla's case the stock continues to rapidly gain after this offering and has bloodied the noses of many a short investor. Look for Revolution Lighting to quickly rebound from this hatchet piece and move back to it's assault on sustaining a 4.00+ level moving towards 5.00 a share.
    2 Jul 2013, 04:57 PM Reply Like
  • Mattster
    , contributor
    Comments (162) | Send Message
     
    you were right, RVLT pops a week or so later.
    15 Jul 2013, 11:33 AM Reply Like
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