Time For Investors To See The Light: Energy Focus Is Undervalued Relative To Its Peer Group, Patent Portfolio And Growth Prospects
John Leonard, CFA • Sat, Aug. 23
- Investors have been slow to recognize the successful transition and significant revenue growth, gross margin expansion and narrower operating losses.
- The reverse split last month (being mistaken as a sign of weakness as evident by the 20% stock price decrease) resulted in an uplisting to NASDAQ.
- The stock trades at a meaningful discount to its peer group despite a more attractive growth outlook.
- The (overlooked) IP portfolio is worth ~2x the EV of the company.
- The sale of the non-core pool products business last year (with proceeds used to repay the line of credit) and conversion of convertible debt in 1Q14 strengthened the balance sheet.