SunWorks Inc (SUNWQ)

[SandridgeEnergy]

You are correct, I have no evidence of anything like this going on from SUNworks (the subsidiary not the newly renamed parent company) or any reason to believe so. SUNworks is actually, by itself, a pretty good company. This is something I have been saying for a long time.

What's going on in Santa Barbara is what concerns me, not what goes in Sacramento. In fact the excellent performance of SUNworks in general is what makes it easier to the problems with the leadership in Santa Barbara which exerts very little direct oversight over SUNworks (Jim is not even located near the actual operations of the company and has no office).

If you recall SUNworks was quite profitable when acquired (despite lower revenues), and it has taken years for the extra overhead added on by JN to be overcome through growth and for them to once again show a profit. On the other hand, MD Energy has been somewhat of a disappointment, especially after the Fresno debacle.

Abe, Emil, and Mike deserve a lot of credit for what they have been able to accomplish building their company. Nobody else, in my opinion, deserves any credit for the success of SUNworks. The way the compensation rewards are set up, Jim Nelson will receive a huge reward essentially just for using shareholder money to buy them. He can't provide effective active management from his nice house in Santa Barbara, 400 miles away from any actual company operations. He is literally a stay at home CEO, which is pretty much unheard of for any serious leader.

Based on this, in my opinion the most shareholder friendly move would be for the board to push JN out and replace him with Abe Emard, who has proven to be an effective leader. Unfortunately the board is stacked with business associates and family members of JN, so this will likely never happen.

P.S. It might be an accident, but it is certainly fitting, that Abe is listed above JN on the company website.