SunWorks Inc (SUNWQ)

[ahk6608]

Dilution is real and has been happening to SUNW. In addition, when exactly, how and by how much at any specific point, is not something one can pinpoint with certainty. Partly because of that uncertainty, the stock of the company gets punished and the discounting of value occurs. We seem to still be stuck in a down channel and have so far, despite some attempts, not managed to break out to the upside.

This however remains only one of the forces that act on share price, there are others, not the least of which are the fundamental trends in the financials of the company. To encapsulate this trend allow me to look at Owner Earnings.

As I use a third party Data Retrieval tool to grab these numbers from the financials of the company let me first define these Owner Earnings as they are defined in that application..

Owner Earnings = Net Income + Depreciation & Amortization + Deferred Taxes + Special Charges + Stock Based Comp +/- Change in Working Capital (Maintenance Cap. whenever possible to determin)

In words it is an attempt to isolate the cash available for distribution to owners of the company after all other operations.

Here is the trend: Owner Earnings

Q3 2014 -$13.5m, Q4 2014 -$6.4m, Q1 2015 -$0.8m, Q2 2015 $3.1m Q3 2015 $5.2m


According to the financials the data mining yields the following average fully diluted shares outstanding for the individual quarters.

Here is the dilution Trend: Fully Diluted Shares outstanding at time of Q report. (The dip in Q4 occurs because it is a 10Q and represents the average for the whole year 2014)

Q3 2014 12.1m OS, Q4 2014 11.6m OS, Q1 2015 14.5m OS, Q2 2015 17.7m OS, Q3 2015 22.5m OS.

You can guess the rest.

Owner Earnings Available per Share outstanding (Fully Diluted):

2014 Q3 -$1.16, Q4 -$0.552, 2015 Q1 -$0.006, Q2 $0.15, Q3 $0.23


The Data retrieval tool has not accessed the q4 numbers as these have not yet been archived in the EDGAR archive deposits.

I make no discussion of value, or the myriad other components affecting flow of funds into and out of the stock or its liquidity.

Just wanted to highlight this particular trend while Dilution seems to be the strong discussion point. Make of it what you will.

I can not forecast what management intends in terms of further dilution in the future. What I would like to remark is that the latest acquisition completed by the company did have a cash element to it, and a credit line has also been put in place.

Good Luck to all of you