TPS Position Update – August 18, 2015
. . . . ASCENT SOLAR TECHNOLOGIES (AMEX: $ASTI) – Hold
Ascent develops rugged and flexible thin-film photovoltaic modules to compete against traditional solar panels. They can be integrated directly into consumer products and off-grid applications, as well as aircraft and buildings.
We continue to admire the product, and we’re glad to see Ascent is expanding its distribution.
Sales have been strong. When Q2 earnings were reported in July, sales were up 232% at $2.2 million.
Unfortunately, the stock isn’t up 232%. But we’re patient, because the company is forecasting more growth ahead.
“We remain extremely upbeat for the second half of the year given the increased visibility of our EnerPlex products in a growing number of reputable retailers,” says Victor Lee, President and CEO of Ascent.
“With launches into several retailers during the first half of the year, we feel confident in confirming our previously issued FY 2015 revenue guidance of approximately 100% revenue growth over 2014.”
We recommended Ascent in May at $.96. It’s slid to $.15.
. . . . GOLDFIELD (AMEX: $GV) – Hold
When earnings for the latest quarter ending June 30th, 2015 were released last week, we were treated to some good numbers.
Revenue was up 32.1% to $33.5 million.
Income was up to $2.8 million from $693,000.
And net income was up to $1.3 million ($0.05 per share) from a net loss of $238,000.
Goldfield would have done even better if it wasn’t stung by bad weather that plagued its construction projects in Texas this spring. It took a $1.2 million loss because of delays.
What’s next?
Goldfield needs to sign new agreements and get more business. It’s great to see the company making money, but what we also need is stronger deal flow, more projects in its pipeline. Its backlog is down by more than 20%.
Fortunately, demand for its utility construction services appears strong. According to Goldfield CEO John Sottile, “The general demand for electrical construction services is positive.”
We recommended Goldfield in April this year at a buy price of $1.67. Just a month earlier, the stock traded at $2.77.
On Friday, it soared, up 31%, and today, it closed at $1.91.
This summer, until last week’s positive earnings news, the stock has been languishing, stuck in a channel. We don’t expect significant movement until next quarter’s results… with a few new deals for construction projects inked, the stock has an excellent chance of continuing its upward run.
Action To Take
- Hold ASCENT SOLAR TECHNOLOGIES (AMEX: $ASTI)
- Hold GOLDFIELD (AMEX: $GV)
Category: TPS Update
