All good points..... the reality is they cant stay at .50/share or shrink any more and stay public. The cost is too high and they are out of assets to sell. Doing a secondary at .50/share would be terminal to them as well. Adding debt wont happen either, have you looked at the latest credit report for RGSE? They would have to pay a 15% rate to get "high risk" funds. They have to be looking at strategic alternatives right now. SCTY, SunPower, SolarWorld and SunRun all have enough cash to easily take RGSE out and they could do so at a nice bargain, and at a level where some investors might make $. I still think there are only two viable options.
One - this stock goes up in a big way. Or Two - they file and they stock is worth zero. They dont have a ton of debt so filing doesnt seem like a good option and really wont help them. At this point, how much lower can this stock go? If filing really isnt an option then there is no reason NOT to LOAD up at this level. Could be an easy 400% or more this year.
Agreed, there is nothing there to buy at this point. They are a construction company that does low margin installs. At less than 20% gross margin, no one would want to but them.
Looks like they needed the cash badly. Selling a highly valued asset for 1M is a clear sign. That business is worth 5-10M easy. John got a great deal.
I hope rgse is out there trying to find a buyer, this stocks trends is 100% downward since mid year. It looks hopeless unless someone buys them. Even then, it will only be 2/ share max
Looks like we tested the bottom and should close over 90 today. Great quarter and lots of mono, stock should be back over 100 by the end of the year. IBM and SAP both looking at WDAY too, might get a nice pre holiday buyout before 2015.
out of cash, a little bit of inventory and small line of credit will not carry RGSE through the winter or very slow solar install months. The gross margins are dismal too which wont help. Sorry gang, this puppy is in big trouble.
I added 75k shares over the last two days to average out my basis a bit. Sad that it didnt move the stock at all. Atleast I am trying :-)
I cant find any reason for this stock to sell off like it has over the past month. What is up?
You need to do your research, RGSE and SCTY are nothing alike. SCTY is a solar finance vehicle with long term value. RGSE does and install once and they are on to the next client, there is no long term revenue flow with their deals. Also, look at RGSE's gross margins, they are dismal and not sustainable. RGSE is closer to a solar module maker then they are to SCTY. SCTY is a solar finance arbitrage play. RGSE is a just a big contracting company that does solar installs install of HVAC work or cleaning out toilets.
RGSE is a solid company, but they are in an industry with razor thin margins. The margins are only getting thinnner. It is going to be hard to stay in the game without money coming from solar finance and pure install revenues only. The end is near, sorry, but that is the reality here.
it is a total disaster inside RGSE right now....
Blow OUT Q about to be announced
Someone please come in at 27/share just to keep VR honest. I cannot believe this company will go private for 24/share when VR has been saying this stock is worth more than 40/share for over five years.