SunWorks Inc (SUNWQ)

[Grizzly22]

reading through a few posts from earlier, people are really complaining about BIG goals?

A few people commented on Nelsons 100 million revenue goal for next year. Here is how they can achieve that.

SUNworks should bring in 6-7 million in Q4 of this year, bringing the yearly revenue for 2014 to 20-21 million. They are somewhere around a 2.5 times earnings from 2013 (8.5 last year to 21 this year). If they keep up that same growth rate, then they will be around 50 million in revenue next year (from 20 M in 2014). add in MDE around February. They are doing somewhere around 7.5 million in revenue in 2014. If they grow in a similar fashion to SUNworks, they could bring in around 20 million. They are, after all, in one of the hottest solar markets in the world (Southern Cali). so then you have around 70 million. We received news a few weeks back that SUNworks was organically expanding into the hot Nevada market. Add in two more installation companies sometime early next year, and I think around 100 million is achievable. you would feasibly only need 30 million out of the two new installation companies.

Who knows where the ratios are going to rest at. we could see 30 M from MDE and 40 M from SUNworks. we could see 40 M from two completely new installers. Nevada could be very fruitful in the first year, etc. but what I think is reasonable is that 100 M is very achievable next year.

I do understand the rationale behind the "give them more than they were expecting" philosophy. Its biology. we all love pleasant surprises but more importantly HATE unpleasant surprises. But, if the goals are realistic and there is a clear path to achievability, then set big goals. Personally, I want the CEO to set lofty and exciting goals. All too often goals are way too small and unexciting.


Also, someone brought up the Efficient Market Hypothesis (EMH) earlier. The idea that stock prices accurately and timely reflect all available pertinent information. That the market is rational (emotion isn't a variable) and accurate (in valuations) and fully informed (obscured stocks on the OTC don't exist). I haven't heard a ridiculously funny joke like that in a while. I'm going to have to write that on a napkin so I can share it with someone else when they are in need of a good laugh. absurd things are funny...

http://www.investopedia.com/terms/e/efficientmarkethypothesis.asp