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20 Share buy brought us down to 3.50 AH. 10 Share buy back up to 4.15 Pre market. Funny stuff.
Opportunity cost is extremely easy to understand. Applying it correctly in a business case is not. Your example was a gross oversimplification at best.
I agree except that energy expenditure is a fixed cost; overhead if you will. Reducing overhead is always a smart move.
Who's ready for the third head of this triple whammy? Financials, Fresno....
Acquisition!!
https://fresno.legistar.com/MeetingDetail.aspx?ID=368526&GUID=509EC057-1D09-442C-8949-6FDC3448EA57&Options=info&Search=
Here you go. I think they go through this in order.
It looks like they have to re appropriate funds in order to meet the 10.2 million price tag.
"Actions pertaining to the Fresno/Clovis Regional Wastewater Reclamation Facility (RWRF) 2-Megawatt Solar Energy Facility (Bid File 3380) (Council District 3) 1. ***RESOLUTION - 4th amendment to the Annual Appropriation Resolution (AAR) No. 2015-104 appropriating $1,367,500 in the sewer Enterprise State Revolving Loan Fund for the Regional Wastewater Reclamation Facility 2-Megawatt Solar Energy Facility (Requires 5 affirmative votes) 2. Award a $10,024,426.24 contract as negotiated, to MD Energy, Inc., of Rancho Cucamonga, California for the design and construction thereof"
So about 5 million per quarter over the next 2 quarters? Sign me up for that.
GREEN!
Glad I followed the chart's advice! Thanks Moon!
Exactly. It's always better to under-promise and over deliver.
Revenue is recorded on a percentage complete basis.
I almost feel bad for the people that sold yesterday in the $3.50 range... Ouch...
Well stated thoughts. I also think it puts us in a new tier as far as project size. Hopefully we start seeing more frequent 2 MW+ projects in the future.
I agree. The budget was approved, the loan is secured, it seems like a formality at this point but I don't hear the fat lady singing juuust yet. I think she's warming up somewhere close by.
NEWSLETTER: Solar3D’s MD Energy Awarded $10 Million Solar Contract Subject to City Council Approval
"Fresno/Clovis Wastewater Reclamation Facility Enlists MD Energy to Build Multi-Megawatt Solar Power System
Santa Barbara, CA – July 24, 2015 – Solar3D, Inc. (Nasdaq: SLTD), a leading provider of solar power solutions and the developer of a proprietary high efficiency solar cell, today announced that its MD Energy subsidiary has been awarded a $10 million, 2- megawatt solar project with the Fresno/Clovis Wastewater Reclamation Facility, subject to approval by the city council. A city council meeting to approve the award is set for next Thursday, July 30, 2015.
Operated by the City of Fresno, the Fresno/Clovis Regional Water Reclamation Facility (RWRF) provides wastewater treatment services for the greater Fresno metropolitan area in order to protect public health and the environment.
“This is a testament of the value of the synergy between great companies and management teams,” said Jim Nelson, CEO of Solar3D. “MDE and SUNworks worked hand in hand to create this solution for the City of Fresno. We are confident that the City will receive not only a great product but also excellent service in the delivery of this contract. This is an example of one way that Danny Mitchell, Abe Emard and their teams continue to work together to serve great customers—and to build the value of this Company. We anticipate additional developments as we continue to grow Solar3D. ”
Finally an update! Thanks Jose. Absolutely huge news.
Cool! I wonder why it isn't posted on the main city page. I guess the contact award could be imminent as well.
Acquisition news is the ticking time bomb. Could go off any day. That $10 million in cash is there for a reason.
Buying more of this down in the 2's was a no brainer. I love easy money!
$4.15 or higher. It keeps coming back to the initial offering number.
Straight from the last 10Q.
"Revenue Recognition
Revenues and related costs on construction contracts are recognized using the “percentage of completion method” of accounting in accordance with ASC 605-35, Accounting for Performance of Construction-Type and Certain Production Type Contracts (“ASC 605-35”). Under this method, contract revenues and related expenses are recognized over the performance period of the contract in direct proportion to the costs incurred as a percentage of total estimated costs for the entirety of the contract. Costs include direct material, direct labor, subcontract labor and any allocable indirect costs. All un-allocable indirect costs and corporate general and administrative costs are charged to the periods as incurred. However, in the event a loss on a contract is foreseen, the Company will recognize the loss as it is determined.
Revisions in cost and profit estimates during the course of the contract are reflected in the accounting period in which the facts, which require the revision, become known. Provisions for estimated losses on uncompleted contracts are made in the period in which such losses are determined. Changes in job performance, job conditions, and estimated profitability, including those arising from contract penalty provisions, and final contract settlements may result in revisions to costs and income and are recognized in the period in which the revisions are determined.
The Asset, “Costs and estimated earnings in excess of billings”, represents revenues recognized in excess of amounts billed on contracts in progress. The Liability, “Billings in excess of costs and estimated earnings”, represents billings in excess of revenues recognized on contracts in progress. At March 31, 2015 and 2014, the costs in excess of billings balance was $1,564,543 and $1,276,677, and the billings in excess of costs balance was $1,143,189 and $891,633, respectively.
Contract receivables are recorded on contracts for amounts currently due based upon progress billings, as well as retention, which are collectible upon completion of the contracts. Accounts payable to material suppliers and subcontractors are recorded for amounts currently due based upon work completed or materials received, as are retention due subcontractors, which are payable upon completion of the contract. General and administrative expenses are charged to operations as incurred and are not allocated to contract costs."
It looks like FY2015 budget wasn't approved until September of last year. We may be waiting a few more months before hearing anything in regards to Fresno. No biggie.
From the FY2016 Budget found here: http://www.fresno.gov/NR/rdonlyres/D365E60E-2E45-4FA6-BA6E-4EFA1599F24D/0/2016ProposedFULLBudgetBook.pdf
Page 229:
"Solar Array to Support Tertiary Treatment
Phase I at Regional Reclamation Facility:
This project is for the construction of a 2 Megawatt
solar energy system at the Regional Wastewater
Reclamation Facility. The solar array is to offset
the increased electrical demand of Phase I of the
Tertiary Treatment infrastructure which began
construction in FY 2015 and will be completed in
FY 2017. The FY 2016 budget includes $9.1
million in FY 2016 for construction of the solar
array. Funding for this project is a low interest
State Revolving Fund loan through the California
State Water Resources Control Board as part of
the Governor’s drought response. The loan was
approved in FY 2015 to fund construction of
Phase I of Tertiary Treatment at the Regional
Wastewater Reclamation Facility and the Solar
Array"
It looks like it is definitely in the plans for FY2016. This budget is the "Proposed" budget. I think the holdup now is that this overall budget needs to be approved by the council before the projects can begin.
FYI The City of Fresno's fiscal year ended on June 30th, 2015.
I think the plan was to fit the solar project into last year's budget but for some reason that didn't happen. The good thing is that the new fiscal year is here so budgetary reasons should not be a concern!
$4.15 is the equilibrium price IMO.
I honestly think we'll be back above $4 before Q2 numbers are released. After that who knows but get in while you can!
In for more in the 2's. I thought I would never have an opportunity to buy this low again after last time! Hopefully we see a similar rise back up to the 4-5 range come August. LONG.
If I am reading last meeting's minutes correctly it looks like they approved a re-appropriation of funds in order to meet the costs of the project.
Who thinks we see Fresno update today? This has been the longest period without an update since I've started checking the Anticipated Awards Page about a month ago.
If you look at the base financials of this company along with the growth of the solar industry in general you'd see that this is a great time to get in. I'm not sure if it's a misunderstanding of the market in general or simply a lack of patience but you're wrong. If you have some insightful analysis to add I'd love to hear it but please quit it with these snarky comments every time the price corrects back down. I don't see you here commenting during a run up.
I think you're right. However, I don't think we see a PR until the council votes and it is lawfully under contract. I expect the pending awards list to be updated Monday/Tuesday of next week with MD Energy listed as "To be awarded".
Cyclical Industry. It's normal.
Check out some of the industry leaders. I'll do SolarCity for you although not an apples to apples comparison since lease rev is more stable:
in Thousands
Q1 2014 - 63,546
Q2 2014 - 61,334
Q3 2014 - 61,334
Q4 2014 - 58,343
Q1 2015 - 67,479
Comparing Q1 YOY SolarCity looks to be doing a pretty good job. Their QOQ numbers look like they have "flatlined" similarly to SLTD's. I would think that it would be a bit easier to show revenue growth with a lease model since you are adding to previously guaranteed revs. The fact that SLTD has kept similar levels of revenue in "slow" quarters with their financing model is that much more impressive.
I see what you are saying and you are correct. My main point is that QoQ isn't a good way to judge the solar industry. Especially a growing company with acquisitions that muddle a true basis of comparison.
You have to look at earnings on a Quarter over Quarter basis especially in a cyclical industry like solar. Q1 is always the weakest quarter.
Q1 2014 Rev: 1,047,415 plus 414,123 cash.
Q1 2015 Rev: 5,658,753 plus 11,230,480 cash.
Where is this declining revenue you are talking about?
Fresno updated the 'Anticipated Awards' document but still no news on the MD front.
Maybe they realized that, long term, they were in an uphill battle against the giants in the industry (solarcity/vivint) and that the only way to succeed would be to unite and fight?
Just got this email from Jean Thomas-Runnels who is the contact person for the bid.
My Email:
"Good morning!
Do you have a date available as to when this will be up for a vote/decided on? Thanks!"
Reply:
"Morning and no this project is still being evaluated, we have up to 120 days to make an award but you can check the City site every Mon. and Friday."
I think the "Anticipated Formal Bid Awards" page is updated every monday and friday?
This live stream is sweet! Great exposure.
We are missing institutional investors. We need some of the big boys club to buy in. If this marcum conference goes well we could see a volume spike that will send the shorts scrambling and the price rising.
thanks! I wonder when the results will be posted !?!?! Has anyone been able to decipher a general timeframe we can expect?
Hey Raz can you provide the link to the pending bid website?