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RGS Energy, Inc. (RGSE)

  • Tue, May 19, 12:47 PM
  • Tue, May 19, 10:29 AM
    • A day after falling 11% in the wake of a 1:20 reverse split going into effect, RGS Energy (RGSE +12.8%) is up sharply.
    • On a split-adjusted basis, shares remain down 29% from where they traded before RGS reported a 23% Y/Y Q1 revenue drop on May 11, while stating it's looking to raise up to $11.5M in new financing.
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  • Mon, May 18, 12:46 PM
  • Fri, May 1, 12:59 PM
    • RGS Energy (NASDAQ:RGSE) has surged on volume of 6.9M shares, well above a 3-month daily average of 2.7M. The gains come a day after the U.S. solar installer closed just $0.02 above a 52-week low of $0.18.
    • RGS (current market cap of $19M) still trades at a fraction of a 52-week high of $3.20. Shares sold off a month ago after the company posted its Q4 report.
  • Wed, Apr. 1, 6:09 PM
    • RGS Energy (NASDAQ:RGSE) fell 7% today to $0.25 in the wake of its Q4 report, making a new low of $0.23 along the way.
    • Revenue from continuing ops rose 2% Y/Y in Q4 to $18.4M. Residential ASPs rose 2.3% Q/Q and 20% Y/Y, but rooftop deployments fell to 496 from 573 a year ago; the repeal of Missouri and Colorado solar incentives are blamed. Residential gross margin fell to 11.8% from 21.3%.
    • Backlog rose 5.6% Q/Q and 119.5% Y/Y to $61.7M. RGS, which just raised funds through a stock/warrant offering (and announced big job cuts soon afterwards), had $5.4M in cash and available borrowings as of March 23.
    • Q4 "cash inflow" was $600K, a marked improvement from Q3's -$6.2M. However, RGS adds a "lack of favorable vendor terms and the reduction of the line-of-credit during the fourth quarter prevented the company from having sufficient access to solar panels to convert its backlog." It's counting on its recent fund-raising efforts and job cuts to address the issue.
    • Q4 results, earnings release (.pdf)
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  • Tue, Mar. 24, 2:24 PM
    • Buoyed this year by decent Q4 numbers, solid 2015 guidance, and YieldCo news, solar stocks are adding to their gains today even as the Nasdaq barely budges. The Guggenheim Solar ETF (TAN +0.7%) is up 35% YTD and nearing a 52-week high of $47.00.
    • Chinese firms are adding to last week's gains - JinkoSolar (JKS +3.7%), ReneSola (SOL +3.3%), Daqo (DQ +4.8%), Trina (TSL +1.9%), JA Solar (JASO +2.7%), and China Sunergy (CSUN +12.5%) stand out. Beijing recently hiked its 2015 solar installation target by 2.8GW to 17.8GW (up from 2014's 14GW), while setting no specific targets for utility vs. distributed solar installations. The lack of utility/distributed targets is expected to make the goal easier to hit.
    • U.S. names aren't getting left out: First Solar (FSLR +3.5%) and SolarCity (SCTY +2.1%) are rallying, as are microcaps RGS Energy (RGSE +6.5%) and Solar3D (SLTD +12.7%). Solar3D, a California installer, has risen 58% over the last 4 trading days.
  • Tue, Mar. 17, 8:53 AM
    • RGS Energy (NASDAQ:RGSE) +10% premarket after renewing its revolving line of credit with Silicon Valley Bank and loans with Riverside Fund III.
    • "The extension of our line of credit and investor loans, coupled with our recently completed public offering, significantly strengthen our financial position," said CEO Dennis Lacey.
    • The latest amendment to the company's credit facility with SVB provides RGS Energy with a $5M revolving line of credit through March 15, 2016, while the amendments to the loans from Riverside extend $3.15M in loans through March 31, 2016.
  • 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
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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.