Frankly, I'm not upset by today's price action even a little bit.
Take a step back and think about this week:
Preliminary results for Q2 are absolutely fantastic (with one caveat, net loss...which I believe will be addressed in the call)
Fresno deal.... We knew it was coming. But it's nice to have confirmation from the company. Based on Bucky's posts today, I don't anticipate a single issue with the council approval. All Committee concerns have been addressed satisfactorily.
Stock valuation... We are currently sitting at approximately $75M and as we all know Fresno was never a part of the original guidance. $75M for a $55Mil revenue company (+ close to $12 Mil in the bank)? I'm very bullish about what's to come.
Today's hike and drop? The street article is very poorly written, their conclusion is inconsistent with the body of the article. I don't think it affected the price even by a little bit.
Forward guidance... Backlog at the end of Q1 was $14 Mil. Company recognized about $11, but previously announced jobs during Q2 (in addition to anything un-announced, i.e. residential projects, Nevada etc.) probably takes backlog back to $14 Mil. Sorry, with Fresno it's now $24 Mil. Of course Fresno will not appear on Q2 statement, but it sure will get a lot of attention during CC.
Fresno revenue recognition...The project will need to be completed within 7 months after council approval. Essentially, the timeframe becomes August through February. Two months in Q3, Three months in Q4, Two months in Q2. Company uses percentage of completion method... If they split the work over seven months means we have a good chance of recognizing (approximately) additional $3M in revenue in Q3, $4M in Q4 and $3M in Q1 of 2016.
Conference call...In addition to having mentioned the word acquisition three times on the Preliminary earnings PR, please note the following phrase:
Solar3D [CEO and CFO] will discuss operational and financial highlights for the second quarter 2015, as well as forward looking strategy for the rest of the year.
Returning to my opening statement regarding today's action...SLTD keeps producing incredible results and the market is too slow to react. The last time I checked, 2+2=4. The market can argue it's 5, but in the end of the day they won't be able to deny it's still 4. When market finally reacts, today's pop will seem insignificant. This stock will exceed our wildest expectations.
This week alone price grew by about 25%. It's not insignificant. But if the price stagnates even after a week like this (and starts retracting), I know exactly what I am going to do... add more shares and/or options.
p.s. Additional thanks to Bucky and Jose, both of you provided valuable information regarding Fresno city council operations.
AI
