Energy Connect Group, Inc. (fka ECNG)

[Huggy Bear]

Oh well... I sold my remaining position at .16 but I fully intended to get it back after they announced they were expecting a crappy Q4 hidden in the 10-Q for Q3. I thought I could buy em back around .10 or even less and had no idea Johnson controls was considering merging them in.

Congrats to all holders for a nice gain. However, I think that ECNG had way greater potential than .22 but hey, too late now...

malc

[bradakus]

Topped out...EnergyConnect shareholders will receive $0.2253 per share in cash for each EnergyConnect share they own

[MoneyBob]

One analyst has set a price target of $2.50 per share for EnergyConnect stock.

As recent as November 9, 2010, the Company reported a third quarter 2010 revenue increase of 68% over 2009. Indeed, Andrew Warner, EnergyConnect’s CFO, said, “[t]he results for the first nine months of 2010 exceeded our expectations, more than doubling year-to-date Adjusted EBITDA, compared to the prior year period.” Moreover, according to Yahoo! Finance, at least one analyst has set a price target of $2.50 per share for EnergyConnect stock.

[MoneyBob]

looks like this one is dying slowly...hope that i am wrong

[MoneyBob]

Thank you...watching it close at the moment. I want to see what it will do next

[timhyma]

thanks, good luck to everyone else in the stock.

[MoneyBob]

nice job...I don't blame ya :)


Thursday, March 03 2011 11:32 AM, EST Rigrodsky & Long, P.A. Investigates Buyout of EnergyConnect Group, Inc. ECNG.OB Business Wire   "Press Releases - English"
WILMINGTON, Del. --(BUSINESS WIRE)-- Rigrodsky & Long, P.A . announces that it is investigating potential claims against the board of directors of EnergyConnect Group, Inc. (EnergyConnect or the Company) (OTCBB: ECNG.ob) concerning possible breaches of fiduciary duty and other violations of law related to the Companys entry into an agreement to be acquired by Johnson Controls, Inc. ( Johnson Controls) (NYSE: JCI) in a transaction with a total value of approximately $32.3 million . Click here to learn how to join the action: http://www.rigrodskylong.com/news/EnergyConnectGroupInc-ECNG.

Under the proposed agreement, EnergyConnect shareholders will receive $0.2253 per share in cash for each EnergyConnect share they own. The investigation concerns whether EnergyConnects board of directors failed to adequately shop the Company and obtain the best price possible for EnergyConnects shareholders before entering into the agreement with Johnson Controls .

As recent as November 9, 2010 , the Company reported a third quarter 2010 revenue increase of 68% over 2009. Indeed, Andrew Warner , EnergyConnects CFO, said, [t]he results for the first nine months of 2010 exceeded our expectations, more than doubling year-to-date Adjusted EBITDA, compared to the prior year period. Moreover, according to Yahoo ! Finance, at least one analyst has set a price target of $2.50 per share for EnergyConnect stock.

If you own the common stock of EnergyConnect and purchased your shares before March 3, 2011 , if you have information or would like to learn more about these claims, or if you wish to discuss these matters or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Seth D. Rigrodsky, Esquire or Noah R. Wortman , Case Development Director, of Rigrodsky & Long, P.A ., 919 N. Market Street , Suite 980, Wilmington, Delaware , by telephone at [phone], or by e-mail to [e-mail].

Rigrodsky & Long, P.A ., with offices in Wilmington, Delaware and Garden City, New York , regularly litigates securities class, derivative and direct actions, shareholder rights litigation and corporate governance litigation, including claims for breach of fiduciary duty and proxy violations in the Delaware Court of Chancery and in state and federal courts throughout the United States .

Attorney advertising. Prior results do not guarantee a similar outcome.



Rigrodsky & Long, P.A . Seth D. Rigrodsky, Esquire Noah R. Wortman, Case Development Director 888-969-4242 302-295-5310 Fax: [phone] [e-mail] http://www.rigrodskylong.com

Source: Rigrodsky & Long, P.A .

[timhyma]

Sold my position at .216, happy with the 332% gain from Dec 2009 <vbg>.

[MoneyBob]

yeah the traffic is definitely there now...stock is going sideways at the moment though

[timhyma]

3.2mil shares traded <vbg>.

[MoneyBob]

I didn't want to wait too long so I grabbed it first thing this morning.

[bradakus]

Takes a little time for the street to react...This see what it thinks...GL

[MoneyBob]

I thought so too...just wish it would keep moving up :)

[MoneyBob]

It spiked today after the buyout news but that was all on the gap up in the morning. Not a lot of traffic to keep it going yet

[bradakus]

This is a big deal.....

[MoneyBob]

Thursday, March 03 2011 9:00 AM, EST EnergyConnect Signs Definitive Agreement to Be Acquired by Johnson Controls for $0.2253 Per Share Business Wire   "Press Releases - English"
All Cash Offer Represents 73% Premium to the March 2, 2011 Closing Price

SAN JOSE, Calif. --(BUSINESS WIRE)-- EnergyConnect Group, Inc. (OTCBB:ECNG), a leading provider of smart grid demand response services and technologies, signed a merger agreement with Johnson Controls, Inc. (NYSE:JCI), the global leader in delivering products, services and solutions that increase energy efficiency in buildings, to acquire EnergyConnect for a total cash consideration of approximately $32.3 million .

The terms of the merger agreement represent a great outcome for our shareholders, said Kevin R. Evans , president and Chief Executive Officer of EnergyConnect . The $0.2253 per share acquisition price represents a significant cash premium of approximately 73 percent over the previous closing share price on March 2, 2011 . Combining forces with Johnson Controls extensive market reach would enable us to provide complete end-to-end demand response solutions to a significantly expanded customer base.

Under the terms of the definitive agreement, which has been approved by EnergyConnects Board of Directors, Johnson Controls would purchase all of EnergyConnects outstanding shares for $0.2253 per share in cash. The Board of Directors recommends EnergyConnect shareholders vote in favor of the transaction in the proxy anticipated to be filed in approximately four weeks. The deal is expected to close in the summer of 2011, subject to the satisfaction of customary closing conditions.

UBS Investment Bank served as financial advisor and Orrick, Herrington & Sutcliffe LLP as legal advisor to EnergyConnect . Godfrey & Kahn, S.C. acted as Johnson Controls legal advisor.

About EnergyConnect

EnergyConnect delivers industry leading Demand Response technologies and services to commercial, institutional and industrial consumers enabling them to manage their use of electricity in response to market prices or regional power shortages. EnergyConnects GridConnect technology platform provides a scalable, cost-effective, clean technology to enhance the grids efficiency and reliability. For more information about this leading edge technology or about investor relations, visit http://www.energyconnectinc.com.





Company Contact: EnergyConnect Rich Quattrini , 408-340-7940 [e-mail] or Investor Relations Contact: Lippert/Heilshorn & Associates Tim Dien , 415-433-3777 [e-mail]

Source: EnergyConnect Group, Inc.

[timhyma]

Some volume today, but not much movement.
ENERGYCONNECT GROUP(OTC BB: ECNG.OB )
Last Trade: 0.13
Trade Time: 2:39PM EST
Change: 0.01 (8.33%)

Volume: 279,342
Avg Vol (3m): 66,747

[timhyma]

Thanks for your honest thoughts. I'm still optimistic overall on the company. The overhang of dilution is going to jam up the pps for a while, but I expect 40 cents within 12 months- maybe even a buy out at higher prices, if they can continue to show profits

[Huggy Bear]

Another note of caution, from page 4 of the 10Q.


The accompanying unaudited condensed consolidated financial statements have been prepared on a going concern basis, which contemplates
the realization of assets and the satisfaction of liabilities in the normal course of business. As shown in the consolidated financial statements
for the year ended January 2, 2010, the Company incurred net losses of $3,222,021 and generated negative cash flow from operations in the
amount of $1,253,762. In the nine months ended October 2, 2010, the Company had net income of $2,443,735 and generated positive cash
flow from operations in the amount of $1,251,567, but expects to report a net loss in the three months ending January 1, 2011. These factors
among others indicate that the Company may need additional funds to continue as a going concern for a reasonable period of time.

Not exactly in the clear yet. Hmmm, maybe I won't be buying those shares back before the next Q if the company readily admits that it will likely be a losing Q, maybe flat at best. This is not a given, but if they are predicting a 4th quarter loss then its probably prudent to take their word on that.


malc

[Huggy Bear]

I think that the Q looks pretty good. Not much in the way of earnings (.01) but the strong increase in cash and shareholder equity is impressive. A thing of concern could be the large A/R, 24M, which is the bulk of their assests... What if all those receivables arent collected?

15M extra shares YOY but a 3x increase in earnings to 1.45M. If they can keep up the increasing market presence then it could be a real nice 2011. The BOD additions look very credible and the new Chicago branch office indicates market opportunities in the Midwest IMO. Lots of wishful thinking still going forward for me though.

I've held this over a year now and I still like the company and their technology. However, I did sell half my position today at 100% profit because I needed some funds the bulk up some other positions before their earnings come out.

I will be buying back every one of those shares eventually, but honestly I don't think the Q was impressive enough to push it up much past here, and I think when I do buy them back it will be at a discount from current levels. At least that has been the case in the past when the stock goes thru relatively quiet periods.

I'll be vested again before the next Q - It will be interesting to see if they can collect on most of that AR, I'm cautiously optimistic about the continuing future success here.

malc

[timhyma]

Hank- any thoughts on the Q?

http://finance.yahoo.com/news/EnergyConnect-Group-Inc-bw-2164725580.html?x=0&.v=1

[timhyma]

Company Outlook



Andrew Warner, EnergyConnect’s CFO, said, “The results for the first nine months of 2010 exceeded our expectations, more than doubling year-to-date Adjusted EBITDA, compared to the prior year period. In September, we solidified our balance sheet, achieving a significant milestone of converting $3.3 million in debt into common stock, and in November, we secured a line of credit for $4.0 million with Silicon Valley Bank and Partners for Growth. Looking ahead, we now expect annual revenue growth of approximately 55% over last year, up from prior guidance of between 40% and 45% growth. We remain confident in our goal to deliver positive Non-GAAP Adjusted EBITDA for 2010. The guidance reflects the seasonality in our revenue recognition, where the majority of our capacity revenue is recognized in the second and third quarters of the year.”



As of November 5, 2010, the company had 133,102,130 shares outstanding.

[jmurfk]

The Q is out and it looks pretty nice. Stockholder equity is up around 6.8 million. .01 EPS on a nice rev increase.

[Huggy Bear]

Today after hours we get a chance to see this "much improved" balance sheet. I hope this is the case. There has been alot of news activity leading up into these earnings - I'm cautiously optimistic but then again all these new business scenarios - converted debt into stock (dilution on the neg side) new additions to BOD, new opening of Chicago office, now a new line of credit for ops moving forward - could all be just little props to soften another flat Q.

We will know soon enough, not adding, not selling, just holding tight to see what we think after the Q later today.

malc

[timhyma]

must be getting ready for the next run <bg>

Press Release Source: EnergyConnect Group, Inc. On Tuesday November 9, 2010, 7:30 am

SAN JOSE, Calif.--(BUSINESS WIRE)-- EnergyConnect Group, Inc. (OTCBB:ECNG.ob - News), a leading provider of smart grid demand response services and technologies, secured a $4 million revolving line of credit with an one-year term from Silicon Valley Bank and Partners for Growth.



Andrew Warner, EnergyConnect’s CFO, said, “Over the past several months, we have made significant strides in fortifying our balance sheet. This line of credit supports these efforts. We will utilize it to fund working capital during our seasonal periods as well as fuel growth. As previously stated, EnergyConnect is well positioned with our new GridConnect platform to capture opportunities in the growing demand response market.”



“We are excited about our new banking relationship with EnergyConnect and look forward to supporting its growth initiatives,” said Rick Tu, Market Manager and Deal Team Leader, Western Division, Silicon Valley Bank.



Forward-Looking Statements



This press release includes statements that may constitute “forward-looking” statements. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause or contribute to such differences that include, but are not limited to, competitive factors, the success of new products in the marketplace, dependence upon third-party vendors, and the ability to obtain financing. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release.



About Silicon Valley Bank



Silicon Valley Bank provides commercial banking services to emerging growth and mature companies in the technology, life science, private equity and premium wine industries. Through its focus on specialized markets and extensive knowledge of the people and business issues driving them, Silicon Valley Bank provides a level of service and partnership that measurably impacts its clients’ success. Founded in 1983 and headquartered in Santa Clara, Calif., the company serves clients around the world through 26 U.S. offices and five international operations. Silicon Valley Bank is a member of global financial services firm SVB Financial Group (Nasdaq:SIVB - News), along with SVB Analytics, SVB Capital, SVB Global and SVB Private Client Services. More information on the company can be found at www.svb.com. Banking services are provided by Silicon Valley Bank, a member of the FDIC and the Federal Reserve System. SVB Financial Group is also a member of the Federal Reserve System.



About Partners for Growth



Established in 2004, Partners for Growth (“PfG”) provides custom debt solutions to private and public emerging growth technology and life science companies. PfG’s custom approach results in a variety of structures and terms including working capital lines of credit, term loans and convertible debt. PfG looks to share in the success of its clients by taking equity participation rights in the form of stock warrants or convertibility of its debt.



About EnergyConnect



EnergyConnect delivers industry-leading Demand Response technologies and services to commercial, institutional and industrial consumers enabling them to manage their use of electricity in response to market prices or regional power shortages. EnergyConnect’s GridConnect technology platform provides a scalable, cost-effective, clean technology to enhance the grid’s efficiency and reliability. For more information about this leading-edge technology or about investor relations, visit: http://www.energyconnectinc.com.








Contact:
EnergyConnect Group, Inc.Andrew Warner, CFO, (408) [e-mail] Relations:Lippert / Heilshorn & Associates, Inc.Timothy Dien, (415) [e-mail]

[Huggy Bear]

Very interesting indeed, and looks like some players with some impressive resumes - VP of Pacificorp? Huge west coast energy player there... I wonder about the timing of this PR, is it meant to warm up the market a bit running into tommorrow's earnings report?

I just double checked the earnings calendar, ECNG is supposed to report tommorrow A/H...

[timhyma]

Adding some finance dudes to the game- could get interesting:

http://finance.yahoo.com/news/EnergyConnect-Group-Inc-bw-886432320.html?x=0&.v=1

[Huggy Bear]

I havent called anyone at the company or the IR to find out if they are still maintaining positive EPS guidance for the Q or even the full year. Dont own that many shares, honestly, and who really trusts guidance that much? Well, not in emerging sectors and technology or SaaS services that's for sure...

Watching the weeks action it seems clear that there is complete indecision regarding how the upcoming Q will look - if ECNG falls flat again I expect to see some pretty vicious selling back to .08 or worse, and if they post .02 or even better then the exact opposite will be true, and earlier highs of .26 could be revisited as well. At least this is how the cycles have been going and I've been here awhile...

Company really needs to post that .02 because anyone who looks deep enough can figure out they have serious debt and can ill afford to merely break even at this point. That is my personal opinion. Yet I havent sold all my position because my DD and gut also say that their energy saving software systems are effective and more importantly cost-effective for the consumer. My old posts reflecting my honest projection for a PPS of .40 by years (fiscal) end were based on taking mgmt's word of a profitable 2010 seriously and using .02 or better per Q as a yardstick. Bets are now off after last Q's flat dissapointment.

Looking forward to the next Q report but will readily admit how the numbers crunch out is a total unknown. I'd be foolish to speculate with conviction either way. I know they are spending and have spent lots of money to get to this position of market readiness for their products, and it's time to be consistently profitable or else BK could be looming.

malc.

[Huggy Bear]

I guess we will see come next Tuesday. I took my cost basis out at .24 so I'm riding 2/3rds all shares free - The last flat Q was dissappointing indeed but I really think we will see a positive Q reported next week.

I highly doubt that any of our shares are "worthless" at this point in time but I get your drift. The pop off of the recent bottom was nice to see, and this stock will probably linger around this .14-.15 range until numbers are reported, what happens then is anyones guess but I bet its going to heat up real quick or else fall back down to last years levels if they cant put up positive earnings.

[timhyma]

I'm holding a few shares from last December, but sold a lot on the last run. Figured what I have left are either worthless, or worth trying for a ten-bagger from the .052 I bought at <vbg>.

[Huggy Bear]

I'm still here, at an avg of 8 cents. That is alot of dilution, however, it is a long term positive to shed that debt. Obviously the creditor feels good about the company (at least good enough) to convert the debt into shares at nine cents. Thats a pretty damn good deal for them if ECNG returns to profitability this next Q, which will be reported in a couple of weeks.

I'm holding all shares for the long term although it would not be surprising to see some more sliding running into that Q. The companies PR that seemed pretty tame announcing the opening of a new office in Chicago could be signaling a bunch of new business for energyconnect, we will have to wait and see at this point.


malc.

[timhyma]

anyone still here?

Item 1.02 Termination of a Material Definitive Agreement.



On October 20, 2010, EnergyConnect Group, Inc. (the "Company") and Aequitas Commercial Finance, LLC (“Aequitas”) terminated the Business Loan Agreement and the Commercial Security Agreement between the parties dated February 26, 2009 (collectively the “Loan Agreements”), following Aequitas’ election to convert, effective September 8, 2010, the outstanding balance in the aggregate amount totaling $3,307,279.96 under the Loan Agreements, as evidenced by that certain Convertible Secured Promissory Note dated February 26, 2009, as amended, into 36,504,180 shares of the Company’s common stock based upon the conversion price of $0.0906 per share.

[timhyma]

Spent the week in Sturgis, so have some catching up to do. I still have a small position from December- Thanks Harley for taking us this far

[Harleyman]

Team,
I will be resigning my post as moderator due to liquidating my position in ECNG. It has been a nice run with gains exceeding 125%, however, I do not think it appropriate that I moderate without a position in the stock. Still think it has long term growth, so you may see me back again!!! GLTA!

[10 bagger]

ECNG.. $0.185..

I listened last night to the CC and when the Pres announced the earnings and percentage of growth for 6 mo's and not the current 3 Mo's I turned it off and posted for sale my entire position @$0.1988..Sold much of the position above $0.195 execpt one bid hit @ $0.19.. The position has been during the past few days cut in half to 66,000 shares...Prior to today I was able to make sales as high as $0.2588 and sales along the way on a scale to that price level.. I wish all on this board for bringing the possible opp. of profits in ECNG to my attention.. The mis reading or obvious mis statement of current earnings was the reason for my sale.. GLTA.. hank.

If you get a chance stop by to my trading board or VMC Microcaps,, both listed below....

[Harleyman]

Expecting .02 here, but would love to see .03-.04. We'll see! JMO!

[mooremi9]

Any thoughts on tomorrows release of the second quarter Results?

[Harleyman]

Check out the chart in the ibox, setting up very nice.....

[Harleyman]

I see that, nice!!!

[timhyma]

New 52-week high this morning <g>

ENERGYCONNECT GROUP INC
Price: 0.2089 +0.02 11.41%
Bid 0.185[+]
Ask 0.209
Open 0.185
Volume 131,000

[Harleyman]

If we take out .21 today or tomorrow, before earnings, the next line of resistance isn't until .34, allowing us room for a nice run this next quarter...looking very strong imo!

[Harleyman]

News for 'ECNG' - (EnergyConnect Transforms Demand Response with New GridConnect Integrated Platform GridConnect Enhances Grid Reliability and Empowers Customers with Real-Time Energy Information and Market Access)


SAN JOSE, Calif., Aug 05, 2010 (BUSINESS WIRE) -- EnergyConnect Group Inc.
(OTCBB: ECNG), a leading provider of smart grid demand response technologies,
launched GridConnect(TM), an integrated software platform that enables
participation in the next generation of demand response programs. GridConnect
provides commercial, institutional and industrial consumers with real-time
energy information and empowers them to meet their energy needs through an
optimal mix of demand response strategies.

"Demand response is an important participant in PJM Interconnection's
competitive wholesale electricity market," said Stu Bresler, PJM's Vice
President -- Market Operations and Demand Response. "Our market provides
real-time price signals about grid congestion and the locational cost and need
for power. Demand response providers, such as EnergyConnect, enable end-use
customers to readily receive and respond to our price signals so they can manage
their costs effectively and influence wholesale power prices by reducing demand
while improving grid reliability."

GridConnect, a secure web-based integrated platform, provides 24/7 access to
EnergyConnect's proven products, including the award-winning FlexConnect(TM)
price-responsive demand technology. The unique and intuitive user interface
enables consumers to go beyond traditional dispatchable capacity programs,
providing access to price-response and ancillary service market opportunities
throughout the year.

"When I log in to GridConnect, the new dashboard offers a complete snapshot of
contextual information about our energy use and demand response opportunities,"
said Paul Nowicki, Manager of Facilities and Manufacturing Engineering, Knoll
Inc. "Through a single web link we can now monitor performance in dispatchable
demand response events as well as optimize participation in the price-response
demand markets, thereby reducing our costs and increasing our overall
contribution to grid reliability."

Traditional demand response programs are estimated to reduce peak demand by 38
gigawatts (GW), according to a 2009 report from the Federal Energy Regulatory
Commission (FERC). However, if this "business as usual" approach is expanded to
include a wider adoption of advanced metering, dynamic pricing and integrated
technologies, FERC estimates the demand response market could increase by more
than 100GW by 2019.

"Demand response is an integral part of a smarter grid and an absolute necessity
during periods of peak demand. To achieve its full potential, energy consumption
and the impact of electricity prices must be presented in the context of a
customer's business," said Kevin Evans, EnergyConnect President and CEO.
"GridConnect sets a new standard in integrated demand response technology, by
providing customers with real-time energy information and market access to
inform and motivate them to manage their demand, save money and contribute to a
sustainable future."

[Harleyman]

Nice job Malc! .40 a share will definitely turn some heads, bring it on!!!!

[Huggy Bear]

ECNG is gaining some nice ground back in anticipation of after bell earnings Aug. 10. The addition of another board member was not recieved with any fanfare, but I think it signals that they are serious about increasing customer base and consequently, revenues.

Think for a minute about the other players in the smart grid business who have no positive EPS whatsover, just alot of smoke and mirrors. Some of these emerging "green" businesses are just a joke IMO who play on the "green" wishfulness of progressive investors. Some are reluctant to report in a timely fashion knowing that what is buried in their Q is really not that appealing from a basic business sense mindset. ECNG, on the other hand, seems excited to let this Q out, and wanting to get as many eyes on it as possible.

My previous thoughts on 2010 EPS of .08 might be quite low - After next Tuesdays Q is released we will have a much clearer picture... Still, if they only earn .02 for the quarter we are on pace to post that .08, and once the market will once again allow a US based BB stock earning money to have a very very low end fair 5x valuation, we should be looking at a 40 cent stock by the end of 2010.

I have an odd feeling that Tuesdays Q might be pleasantly surprising. I would be quite happy with another positive .02 but the subtle indicators are leaning towards better than that. Or that they are gearing up to catapult ECNG to the forefront of the midwest smart grid pack. They are the small dog perhaps, but they are the dog making money, not promises. I have read many many articles about the promise of smart grid and ECNG rarely, if ever, gets a mention. I think this is about to change as the market will not be able to ignore them much longer.

malc.

[Harleyman]

Malc,
I completely agree with the scenario you pointed out in your post. This reaffirms my decision to hold, atleast through Q2 earnings, and hopefully beyond.

[Huggy Bear]

Nice 10% gain on very solid volume for this thinly traded stock.
Im holding all shares until we get at least a fair forward 5x valuation or better!

Q1 was positive .02 Q2 to be released Aug. 10! Perhaps sideliners are beginning to load some in anticipation of seeing another .02, or better, quarter. With the potential to land more and more customers as their energy saving technologies become better known, ECNG could have a very "bright" future indeed.

It is currently very undervalued still trading only 2x earnings and also I believe 8 cents for the year may be a tad low.


malc.

[Harleyman]

Earnings will be released after the bell on August 10th, 2010.

[Harleyman]

understood, it's just symantics, a way for me to keep my position in a stock, free up cash for another play. I lock in a lil profit, move on and let the rest do it's thing. It's merely a strategy, there are many others I'm sure

[10 bagger]

There are no free shares in my mind.. If you can sell them they are as good as cash and to think otherwise you are just fooling yourself.. I think if one share is worth selling so should the whole position.. But then what do I know...??? hank

[10 bagger]

There are no free shares in my mind.. If you can sell them they are as good as cash and to think otherwise you are just fooling yourself.. I think if one share is worth selling so should the whole position.. But then what do I know...???