Energy Focus Inc (EFOI)

[FUNMAN]

The secondary and dilution is not making each share more valuable.

Their aim is high and going to make the company more valuable if they perform.

Increasing assets does not increase revenues and profits. Once the money is spent, if revenues are not immediately brought in, the question always is "what then".

Paying off debt is good, but does nothing for revenues.

It is my belief they know more about their sales pipeline than I do. They know they need more manufacturing capacity and on-hand inventory for raw materials and finished goods to meet demand.

They nailed a big school. I am willing to infer they are pursuing more universities and public school districts. It's potentially a limitless market for a penny company.

Happy customers are always a good source for new business. The navy may be having discussions with them.

I just want to be clear, dilution is dilution. The math says the share price should be $4 after the secondary. If I am lucky enough to see the PPS get anywhere near that, I will scoop up more shares. I am willing to go along for a ride with them.

We can always buy more at a fair value when they start to perform. It only takes a few contracts for it to make a big difference.