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Since the end of June last year the company has lost money in every quarter. I assume, based on your energetic response, you disagree that the company deteriorated fundamentally.
Why do you believe that is not the case?
The best quarter the company ever had was 2Q 16, which is the startpoint of the timeframe we are looking at. Which quarters since then do you believe improved their position fundamentally?
I made a little thing to make this a little more clear:
So that was posted to refute a statement that "the fundamentals are better now than 12 months ago".
So far, what has happened since 12 months ago? According to the company they deteriotated for the first 6 months of that timeframe. Since then there has been ine additional report, Q1. In that quarter the company suffered even further losses.
According to company guidance, the company will not begin to be profitable until Q3, which means that Q2 would have to exceed company guidance to the point of erasing not only the expected losses of Q2, but also all the losses last year. The likelyhood of this happening is very low.
This is why saying the company is in a better position fundamentally than one year ago is a false statement.
One strategy one might use in investing could be to sell shares at $1.88, and then buy them again at a lower price, and then sell them again before earnings. However, it's a fairly complicated thing to explain clearly. Apparently.
I actually agree, but for different reasons.
The hype train will get started up again before Q2 earnings. Could be a good time to trade, but I will dump before earnings if I do. Historically it hasn't been a good idea to hold through an earnings day.
It's crazy that this stock was over $4 way back in 2014. People must have really thought it was going to go places (well other places than where it is).
Imagine buying at $4 back then assuming the cell was still real, and then finding out that the company had already abandoned it (not that there was anything there to begin with) when they decided to buy SUNworks at the end of 2013.
The company investor presentation says otherwise:
Financial performance is the most fundamental of all fundamentals. Deteriorated. In bold too!
In all seriousness this does give Chuck more credibility though, the ability to admit the damage that occurred to the company, Nelson would just talk about how excited he is over and over.
Outlook is subjective though, and going forward the fundamentals are of course subject to change.
Their IR firm was IRTH Communications back during those pumps I was talking about. Several deals since Hayden took over have been with companies close to IRTH. Nelson remains personal friends with the brothers who run IRTH.
I have caught these guys paying for people to publish articles on SA (the person I caught closed down their own account with over 250 articles, with the last article they ever published being the one I caught them for). IRTH's authors only disclose as "unrelated third party" despite IRTH being hired by and paid by the company to place these promotions.
Our new CEO Chuck Cargile is most likely familiar with them, he was on the BoD of Reed's INC, which is one of the oldest clients of IRTH.
Do I have a responsibility to protect shareholder value? No.
That's all you need to know.
So yes they rip off shareholders, and no I don't think it is hypocritical to use strategies to avoid being ripped off by them.
It's just the only way to trade this long and have some self respect while not letting management abuse you time and time again only to forgive them over and over and keep giving them one more chance to take advantage of you again.
Management every time they mess up: "But shareholders... we changed... we aren't going to take advantage of you anymore. That was in the past, things are different now! Just buy some shares... you will see!!"
I think quite a few investors deluded themselves into believing that they and management have been on the same team, and that is the fatal flaw.
I wish management would act like a legitimate company and stop using PR to pump their stock to help insiders sell their shares for more. I wish this was a normal company that you could invest in and forget about it. But it's not. It's the kind of company that nobody has any business investing in unless you are willing to adapt to the silly little games management likes to play with their investors. And therefore, being someone who invests money that I do not wish to lose, I choose to adapt. And it works, it works well.
Also I sold at 1.88-1.90, no longer long. I am not going to compete with these level of insider sales at this time.
Sunworks has filed a lawsuit against Sunworks.
https://oregonintellectualproperty.com/2017/06/13/trademark-lawsuit-erupts-over-use-of-sunworks-with-solar-energy/
ROTH Capital Partners - A shop with a long relationship to the shady stock promoters IRTH Communications who have been sponsoring them for a long time (http://www.prnewswire.com/news-releases/irth-communications-sponsors-the-28th-annual-roth-capital-conference-300234958.html) that were behind some of the more notorious pumps (http://microcapresearch.com/solar3d/) on SLTD / SUNW back in the day. Their own employees say their analysts do very little DD. Still only $2.50, that's below $2.77.
That second article, paid for surreptitiously by IRTH Communications was not only extremely misleading, but also marked the high for the stock. A few days later it started going down from $5 and now new PT's are half that. When the pump ends, it would be foolish to not be ready for the inevitable dump.
I base that assertion in relation to the promissory note that was created around the same time SUNworks was purchased. If you recall the shares were trading for around $3.00 a share at the time, and the note allowed the owners to buy shares at $0.338 a share at will. These notes allowed the owners to make well over 1000% profits on some of the shares they sold, which were of course sold in conjunction with company PR statements.
If the stock is at $3.00 and the CEO is surreptitiously* handing out shares at $0.338 to his buddies, that in my opinion is grounds for action. I would find it highly unlikely that Nelson would be able to make a convincing argument that giving his friends a bunch of shares at $0.338 was the best use of shareholder capital. If people were willing to buy the stock at $3 on the open market, the company should be able to get better than $0.338 off the open market. In my opinion it is fraud plain and simple.
*Surreptitiously because the notes appeared to have a higher conversion rate, they however included a clause (which was NOT included in the original filing**) that would reduce the conversion rate to the lowest future rate of conversion. Conveniently, the owners of these notes already owned a note at the $0.338 conversion price. This allowed them to simply convert at small part of that note at will and then have the ability to convert the much larger note at whatever price they chose.
**
I believe that the best way for everyone to gain financially is not to pump or bash a stock, but to find the truth. That is what everyone should endeavor to do at all times. The truth has been that the company has misled their investors time and time again, and has thereby damaged their relationship with them all on their own.
For instance they paid for this garbage to be published (through their "third party" IR Firm): http://microcapresearch.com/solar3d/
Using March of 2015 as a starting point, the sooner one came to this conclusion and took actions with their investments commensurate with such a situation, the more favorable of a financial position they would find themselves in. Therefore any efforts that led one to this conclusion should be considered a public service.
If anyone were to be held legally liable for damaging the relationships between shareholders and the company, while unduly enriching themselves and their acquaintances, I would propose that we begin with the former CEO under whose leadership and stewardship the actual damages occurred.
To simplify: The company is using a (probably legal) loophole to essentially allow insider trading. They set the time of sale in advance, and then use PR precisely timed to the scheduled sale in order to lock in the best possible price for insiders.
Whatever the legal status of this is, and it's probably fine from that point, the benefits to insiders from this strategy come at the detriment of shareholders.
However, because these types of shenanigans are repeated time and time again, if you can predict when insiders will likely sell shares, you can predict when they will pump their stock. This is how to make money on this stock.
Buying and holding is foolish and allows you to be taken advantage of by an unscrupulous management.
Yes seriously. If the CEO knows Abe is selling at the same time he is writing an email, it's kind of bad taste to shift the conversation to imply that insiders are itching to pull the trigger on some buys when they are in fact in the process of selling even more. Just my opinion.
It's also irresponsible to put out a string of PRs to boost the stock right when insiders are scheduled to sell. It sends the signal, as they have sent time and time again, that PRs are not intended to inform investors of significant events, but to enrich insiders.
These projects didn't just happen, they didn't just get signed. They waited until scheduled sells were about to happen, then the put them out all at once within a few days which had the effect of giving insiders the best price possible and neutering whatever rally would have happened in the news was released independently of the insider sales.
By the way, I am long the stock right now because I know they always pump it for these things, so these statements I am making are not beneficial to my own position (nor do I believe they are detrimental because discussions on Ihub, in my opinion, have very little effect on the share price).
Though I expect that this run might be running out of gas now that even more insider sells are being dumped into it.
Cargile: I will look at trying to allow insiders to buy more shares.
*two days go by*
Insiders sell more shares.
Strike one to credibility. He was simultaneously sending letters to individual shareholders talking about the wisdom of buybacks while insiders were in the middle of selling.
This what what I meant with buyback hints. I actually think he is correct that IF they had more cash in the future, it would be a good use of their cash. I do understand you point though, and should have been more clear what I disagreed with.
I don't think it was an inappropriate thing for him to say actually, only that it shouldn't be interpreted as a company buyback happening soon. Sacrificing cash reserves at this point on a buyback would be exceedingly reckless as one more season of bad weather could devastate the company.
No, that would be the balance sheet suggesting that.
Nice work! My emails seem to always get lost in the mail haha.
This actually makes sense, but since its been there for a few months they might want to fix it. If their contractors license had been accurate it would have been a pretty big deal. The fact that it has been materially incorrect for months is great news!
See if you can get him to answer how Edward Wasson got >10% of the company (or at least says he did). Then I will be impressed! Seems like something we should have heard of from somewhere other than a contractors license.
Unless there is some kind of reconquista soon and the location of the wall is moved a few hundred miles north, it's not gonna happen. SUNworks is focused mainly on the central and northern sections of the Central Valley. Since Danny Mitchell I haven't seen much going on down south. There are numerous much better situation, financed, and qualified companies to deal with it.
Hypothetically anyway since the wall will not likely happen, at least anything close to what people are expecting.
The LDS calendar has some very strange correlations with company announcements as well as a few other people have pointed out.
Yeehaw Pioneer Day here we come!
They always save their best for late July. Sure it's BS but it seems to work a little while.
July 24, 2014: http://www.marketwired.com/press-release/solar3d-completes-third-generation-working-prototype-otcqb-sltd-1932565.htm
Fake cell is totally done for real this time.
July 24, 2015: http://www.marketwired.com/press-release/solar3ds-md-energy-awarded-10-million-solar-contract-subject-city-council-approval-nasdaq-sltd-2041560.htm
Fresno, I need not say more.
July 14, 2016: https://www.streetinsider.com/Corporate+News/Sunworks+%28SUNW%29+to+Oversee+Solar+Energy+Projects+for+Amazon+Fulfillment+Centers/11830124.html
PR of a contract of which they had an agreement not to disclose, then no updates ever. But it did generate the record high daily volume.
Wonder what fake but exciting news they have for us this year.
They seem to be getting the band back together with all these PR's in rapid fire.
Even in the unlikely case a wall got funded, and the even less likely case that solar panels were included in plans for said wall, it would be extremely unlikely the contract for the panels would be awarded to a tiny Sacramento based installer.
Fresno denied them because they had no history of large enough projects to measure against. They don't have nearly enough resources to handle it.
Technical analysis "trading" is as about as useful as voodoo.
https://www.fscomeau.com/why-technical-analysis-is-bullshit/
At best it's "experts" selling access to their livestreams.
At worst it's phony guys like Harry Boxer who pumped SUNW on his stream without disclosing his firm was compensated for coverage on them. According to some people, he even lied to them and said he wasn't compensated.
Remember this gem (from Harry Boxers firm), without which I would have never even heard about this company?
http://microcapresearch.com/solar3d/
Bought and paid for by Nelson through his hired IR Firm.
That pump, based off a totally BS premise, got a lot of people to buy in way too high and now a lot of regular people are suffering because of it.
But Nelson's (now rich) friends certainly were able to take advantage of it by selling retail dupes (in their minds) their shares.
This was mainly the Clan "Neeson" crowd that showed up in early 2015 and is now basically gone.
The only thing good about these guys is that they are so HORRIBLE at picking stocks, than you can just bet against them reliably make money.
Here are some of their current and former employees:
https://www.tipranks.com/bloggers/seth-golden
https://www.tipranks.com/bloggers/matt-margolis
https://www.tipranks.com/bloggers/harry-boxer
Literally all in the BOTTOM 2-3% of all analysts. It is actually difficult to do that badly unless you are blatantly being fraudulent. Whats more is that they actually get people to PAY THEM FOR THIS. They are in the business of tricking people into buying stocks at the high, because their real business is helping companies off load shares onto the gullible or inexperienced. It's rotten.
Ok. Rant over. Have a nice day everybody.
Why I think it went up today and why I bought a few shares.
This PR signals to me much more than the size of the project, that they are willing to pump this thing like the old days going into earnings. Worth a chance. I will sell before earnings during the anticipated pump.
He didn't pay for any shares from cash. He got some for selling his company and more as a bonus.
A stunning, shocking, unprecedented development!
Abe sold shares at the same time the company put out a PR.
They are so transparent in their motives for putting out that news that defending it must be embarrassing.
Either way, fed contracts seem to be a lot less likely now.
Some facts:
1. Fed contracts executive guy was active investor in SUNW lost and lost a lot of money.
2. I remember him that he would "take action" if the cell didn't come out at some point.
3. Some time later he deletes all his social media.
4. A few weeks later he is hired by SUNworks but lives in St. Louis to do Federal contracts, something outside what the company normally does.
5. He doesn't get any Federal contracts.
6. Then he (apparently) quits and removes SUNworks from his resume.
7. Nelson leaves him a nice message talking about all the projects he completed etc.
Investment losses: Recuperated?
Maybe he can clear things up now that he is no longer with the company.
Their Fed contracts guy removed Sunworks from his LinkedIn, before it said he was operating manager.
Jim Nelson speaks about him in past tense, though perhaps it is because Nelson is out as CEO. Though his position as chairman of the board would probably still constitute an association.
Most of them are pretty old though. For instance the West Sac city hall was awarded to SUNW back in 2015, but it just showed up on the website. I don't think any of them are from current quarter.
Also how does that guy have 10% of the company?
He is listed as a Responsible Managing Officer for Sunworks - alongside Emil and Abe, two of the original owners who sold to Nelson. Not an investor. If you click the first link I posted, which I had assumed you had read, you would have seen that.
Here is what that is:
If he was an investor he would be required to file a form 13 with the SEC, not with the California Contractors State License Board. I thought this was self explanatory.
He is not an investor though, he is part of a construction company that does work for solar companies. The kind of company that SUNW might hire to do work on their projects.
Is SUNW paying contractors with stock (to the point of 10% of the company) or did they buy a construction company with stock?
Or is the information wrong? Or something else? It is puzzling right now, but the is answer is likely important.
But >10% of Sunworks ownership? That is the bigger question.
Did you know that Cunningham is based in St. Louis?