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RGS Energy, Inc. (RGSE)

  • Tue, Feb. 24, 2:58 PM
    • RGS Energy (RGSE -29.9%) has priced its stock/warrant offering. The company is selling units consisting of one share and four warrants at $0.50 apiece.
    • Not your standard offering: The warrants include a Series A warrant to buy half of one share for $0.50, a Series B warrant to buy shares for "a 'stated amount' equal to an investor's pro rata share of $8 million based on the aggregate purchase price paid by such investor for Units in the Offering compared to the aggregate purchase price paid by all investors for Units in this offering," and a Series C warrant to "purchase up to 50% of that number of shares of Common Stock actually issued upon exercise of the Series B Warrant for a price of $0.50 per share."
    • The Series A and C warrants are exercisable for 5 years starting six months after the closing of the offering. The Series B warrants are exercisable for a year after the offering's closing.
    • Initial gross proceeds are set to total $3.5M. The company can raise up to $8M more by effecting a mandatory exercise of the Series B warrants.
    • Shares have given back nearly all of yesterday's big gains, continuing the roller-coaster ride they began a week ago.
    • Yesterday: RGS falls after announcing $3.5M offering
  • Tue, Feb. 24, 7:23 AM
    • RGS Energy (NASDAQ:RGSE) has more than recovered from its fall following its $3.5M offering announcement yesterday.
    • Shares were down 14.3% after the market close, but have now bumped up 13% premarket. RGS has been flying this past week, gaining 45.6% in regular trading yesterday.
    • Previously: RGS Energy -14.3% after announcing $3.5M offering (Feb. 23 2015)
  • Mon, Feb. 23, 6:25 PM
    • RGS Energy (NASDAQ:RGSE) has commenced and offering of $3.5M worth of units consisting of common stock and warrants. The company had just $1.95M in cash (to go with $4.35M in line-of-credit borrowings) at the end of 2014.
    • Shares have fallen to $0.60 AH. The offering follows a 5-day tear during which RGS' shares rose 169%. They gained 45.6% in regular trading today.
    • Earlier: RGS Energy continues soaring after SA author makes bull case
  • Mon, Feb. 23, 1:49 PM
    • RGS Energy (RGSE +32.8%) is now up 145% since Feb. 17, the day shares plunged in response to the company's Q4 warning. The U.S. solar installer is at its highest levels since December.
    • This morning, SA author Simple Investment Ideas chalked up RGS' rally to enthusiasm about its financing/installation partnership with East Coast rooftop system provider Centrosolar. "This deal is set to expand RGS Energy's capacity for installs by 1-2 MWs per month, which is a big deal considering the company's relatively small size."
    • The author also praises RGS for "restructuring its business to focus on highly profitable lease/[power purchase agreement] solar products," and sees its access to capital growing as "financing institutions become more accepting of solar lease/PPA products." The U.S. residential solar market's rapid growth is also highlighted.
    • The author does caution RGS is "running dangerously low on cash," but nonetheless sees a favorable risk/reward. "In terms of the company's book value to market capitalization ratio, RGS Energy trades at magnitudes cheaper than its larger counterparts, namely SolarCity and Vivint Solar."
  • Fri, Feb. 20, 10:42 AM
    • After getting clobbered on Tuesday thanks to its Q4 pre-announcement, RGS Energy (RGSE +27.6%) has gone in a very different direction. Shares are now up 36% from where they traded prior to the pre-announcement.
    • With the solar installer's market cap only at $20M at the time of the pre-announcement (it's now up to $27M), a lot of bad news was priced in. And while the company reported weaker-than-expected Q4 sales and an $11M impairment charge, it also reported its cash balance rose slightly Q/Q in Q4.
  • Tue, Feb. 17, 10:58 AM
    • RGS Energy (NASDAQ:RGSE) has plunged below $0.30 after announcing it expects to report Q4 revenue of $18M from continuing ops, even with the year-ago period; the sole analyst estimate is at $23.9M.
    • A $13M+ loss is expected from continuing ops, and a $16M net loss if RGS' discontinued commercial ops are included. Both figures include an $11M impairment charge for RGS' 2014 acquisition of Hawaiian solar installer Sunetric.
    • RGS adds it will no longer have positive net worth thanks to the impairment charge, and thus won't meet Nasdaq listing requirements. The company is "evaluating this matter."
    • RGS ended 2014 with $1.95M in cash, and $4.35M in line-of-credit borrowings. The company "needs to, an intends to, raise additional financing" to help convert its ~$55M backlog and better position itself to renew is credit line under favorable terms.
    • The pre-announcement is easily overshadowing news of a partnership with East Coast rooftop solar system provider Centrosolar America. RGS expects the deal to increase its East Coast installation capacity by 1MW-2MW/month starting in Q2.
  • Thu, Feb. 12, 3:04 PM
    • On a day the Nasdaq is up 1% (thanks in part to Cisco), notable tech gainers include wireless broadband/Wi-Fi hardware provider Ubiquiti (UBNT +5.5%), M2M hardware/service provider Sierra Wireless (SWIR +6.2%), fiber access equipment vendor Zhone (ZHNE +3.3%), CDN leader Akamai (AKAM +5.8%), 3D printing plays Voxeljet (VJET +12.5%) and Materialise (MTLS +4.4%), satellite services/hardware vendor ViaSat (VSAT +4.4%), capacitor maker Kemet (KEM +5.8%), Chinese online real estate play Leju (LEJU +5.7%), and microcap solar installer RGS Energy (RGSE +24.3%).
    • With markets trading higher, the list of notable decliners is smaller. It includes fixed wireless broadband provider Towerstream (TWER -8.9%), local services marketplace Angie's List (ANGI -5%), Chinese social networking/IM platform YY (YY -4.5%), and chip packaging IP provider Tessera (TSRA -6.1%).
    • Sierra, Ubiquiti, and Zhone have joined the list of telecom/networking equipment firms rallying on account of Cisco's numbers. Akamai and ViaSat are adding to the gains they saw yesterday thanks to market-pleasing earnings (I, II), and Tessera is reversing the Wednesday gains it saw on account of a Q4 beat. Voxeljet also rose sharply yesterday.
    • Previously covered: Baidu, TripAdvisor, Nvidia, FireEye, Zillow/Trulia, enterprise tech stocks
  • Mon, Jan. 26, 2:09 PM
    • Though WTI crude is still below $46/barrel and the Nasdaq is only up 0.3%, beaten-down solar stocks are posting big gains (TAN +3.9%). Quite possibly helping: Pres. Obama has said the U.S. will help finance an Indian effort to install 100GW of solar capacity by 2022.
    • The head of an Indian think tank estimates such an effort would cost $160B. India says it's seeking $100B worth of investments over 7 years. The country's bureaucracy/red tape has often stalled major foreign investments; the new government has repeatedly promised to change that.
    • First Solar (FSLR +4.1%) and SunEdison (SUNE +4.1%) are among the companies to have struck deals for Indian solar projects. SunEdison has announced plans to invest up to $4B in an Indian solar manufacturing plant through a JV. First Solar and Trina (TSL +5.4%) are weighing plans to build their own local plants.
    • Other notable gainers: SCTY +4.7%. JKS +7.5%. SOL +5.8%. SPWR +2.9%. CSIQ +4.6%. JASO +4.4%. RGSE +3.7%. ASTI +9.3%. HSOL +3.2%. DQ +3.7%.
  • Thu, Jan. 8, 1:15 PM
    • Deutsche's Vishal Shah, bullish on solar for a long time, asserts the "recent volatility in solar stocks, driven largely by oil price weakness, presents an attractive entry point for investors as we expect 2015 to be a year of stable industry pricing and accelerating volume growth."
    • Shah expects solar to see a "balanced supply/demand outlook as strong demand from the US and improving demand from China/other emerging solar markets offsets any potential demand weakness in the UK/Japan."
    • He observes oil accounts for just ~5% of global electricity output, and sees both solar project pipelines/margins and module margins rising in 2015. Tariffs against Chinese module vendors are expected to be "completely removed."
    • His top picks are SolarCity (SCTY +3.3%), SunEdison (SUNE +4.1%), SunPower (SPWR +6.1%), and Vivint (VSLR +0.3%); the first three are faring quite well today. Yingli (YGE +0.2%), however, has been downgraded to Hold due to balance sheet and financial flexibility concerns.
    • Other major gainers: FSLR +3.9%. JKS +6%. ENPH +5.4%. CSIQ +3.7%. RGSE +5.2%. TERP +3.2%.
    • SunEdison announced today it has bought new wind turbines that will allow it to build up to 1.6GW of wind projects that qualify for U.S. tax credits. The purchase follows the company's $2.4B deal to buy project developer First Wind.
    • ETFs: TAN, KWT
  • Dec. 1, 2014, 12:15 PM
    • With the Nasdaq down 1.3%, solar stocks are adding to the steep Friday losses they saw after OPEC declined to cut production, sparking a huge selloff in oil prices and anything energy/commodity-related. Oil prices have bounced a little today, but WTI crude is still only around $68/barrel.
    • Solar bulls have noted oil only accounts for a small percentage of global electricity production, and that solar stocks have already seen plenty of pain this year. The Guggenheim Solar ETF (TAN -5.2%) is now down 34% from a March high of $51.07.
    • Major decliners: FSLR -6.3%. SPWR -8.4%. SCTY -6%. SUNE -6.4%. SOL -12.8%.JKS -8.1%. CSUN -8.5%. CSIQ -9.3%. DQ -10.3%. VSLR -7.2%. TSL -7.8%. YGE -9.4%. RGSE -7.4%. HSOL -9.5%. TERP -5.8%. JASO -5.2%.
  • Nov. 28, 2014, 10:55 AM
  • Nov. 19, 2014, 7:08 PM
    • RGS' (NASDAQ:RGSE) revenue from continuing operations (excludes its discontinued commercial ops) rose 14% Y/Y in Q3 to $18.9M.
    • However, the Hawaiian Sunetric unit saw revenue fall sharply Q/Q due to "a delay in installations arising from the local utility not approving interconnection requests." RGS notes the utility "recently announced its intention to approve all present applications during 2015."
    • Gross margin fell to 16.9% from 25.9% a year ago. On the bright side, backlog rose 18.5% Q/Q to $9.1M.
    • RGS ended Q3 with $1.8M in cash, $6.4M in inventory, a $4.8M line of credit, and an $8.3M warrant liability.
    • Share fell 7% in regular trading ahead of the report.
    • Q3 results, PR
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  • Nov. 19, 2014, 11:51 AM
    • RGS Energy (NASDAQ:RGSE) has fallen towards $0.80 ahead of this afternoon's Q3 report. Volume (457K shares) is already close to a 3-month average of 473K.
    • Shares now -73% YTD. RGS sold off three months ago after the company announced (along with its Q2 results) it's making a CEO change and plans to de-emphasize its commercial solar ops.
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  • Nov. 18, 2014, 11:36 AM
    • Under pressure for much of last week, solar stocks are rallying (TAN +4.3%) after SunEdison (SUNE +23.5%) and its TerraForm Power (TERP +29.1%) YieldCo announced they're buying leading wind project developer First Wind for up to $2.4B, and JA Solar (JASO +4%) beat Q3 estimates and upped its full-year cell/module shipment guidance to 3.1GW-3.2GW from 2.9GW-3.1GW.
    • Gainers: SCTY +3.9%. SOL +4.5%. TSL +3.7%. YGE +2.7%. JKS +3.4%. HSOL +2.8%. ASTI +6%. DQ +3.2%. RGSE +2.6%.
    • SunEdison CEO Ahmad Chatila declares the First Wind deal will double his company's addressable market. Cowen thinks SunEdison "can leverage First Wind’s platform to push into international markets for wind given the potential expiration of the production tax credit for U.S. wind projects."
    • Along with its results/guidance, JA announced a $90M buyback; it's good for repurchasing 23% of shares at current levels, if fully used. JA's Q3 gross margin was 15%, -20 bps Q/Q but +370 bps Y/Y. Cell/module shipments rose 15.2% Q/Q and 57% Y/Y to 500.2MW.
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  • Nov. 11, 2014, 12:15 PM
    • Newly-public Vivint Solar (VSLR -21.6%) has nosedived after missing Q3 EPS estimates and guiding for Q4 revenue of $5.5M-$6.5M, below a $7.3M consensus. Installations are expected to fall to 45MW-47MW from Q3's 49MW.
    • Rivals SolarCity (SCTY -3%) and SunPower (SPWR -3.2%) are following Vivint lower, as are several other solar names. RGSE -6.2%. ENPH -5.7%. CSIQ -2.5%. JKS -2.2%. DQ -4.1%. CSUN -2.7%.
    • Solar ETFs: KWT, TAN
  • Oct. 28, 2014, 12:46 PM
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Company Description
Real Goods Solar Inc is a residential and commercial solar energy engineering, procurement, & construction firm. It offers services, including design, procurement, permitting, build-out, grid connection and warranty & customer satisfaction activities.