AGD Consulting Group

Steer Clear of Akeena Solar

Qtr after qtr it looks like Akeena sells stock in order to raise cash for their day to day business operations.

Their assets aren't much, but they have grown significantly YOY. Looks like they are inundated in overhead costs.

As I am understanding their business, they're more like a design and management company.

Per the 10-Q (May 14, 2008)

Their cost of sales rose 4.1% YOY while their net sales grew 51.38% YOY. That's an awesome indication that their business is growing rapidly, albeit unprofitably. Their operating expenses have grown 33.75% YOY, again, while their net sales grew 51.38% YOY. Net losses grew 20.39% YOY.

They need to control their overhead expenses (i.e. General & Administrative Costs).

I didn't like that their R&D costs only grew by $197,000 during the 3 months. Although this goes back to the point I raised earlier:

"As I am understanding their business, they're more like a design and management company."

Forward looking:

I believe the steady grow of this company is healthy. I would have liked to have seen profitable growth, but this industry is tough right now. I will continue to monitor the performance of the management and decide within the next two quarters if this is a good investment. So far so good.