Window is closing
State of play
I think we are moving towards a later stage in the game of Sunworks moving from unknown startup to mainstream company. Why call it a game you might ask? Well, because that’s what it is. A serious game containing a lot of money, but a game none the less. A game of buying in cheap and establishing substantial ownership in future growth in a booming industry which will continue to do just that. This game is being run by people with substantial resources and this is about important markets for the direct future (just a personal opinion). In the mean time the real world is that of every day business Sunworks performs in and reports about, obviously.
Let’s take a look once again at the state of its affairs in random order :
The celltechnology is real and alive. It has presently no priority because of present market-opportunities to find a manufacturing partner and the integration business needs considerable attention if you want to do it successfully, which is understandable. The patent state of affairs might also have something to do with it, but we don’t know this for sure. In August (or later) though, we can speculate that it might possibly be together with Q2 results, there is major development expected in the China application. A succesfull grant will also have impact on the other 3 applications (Singapore, India, USA). This might already be the case (speculation).
Business results are ever improving. During conference calls Jim Nelson has been reporting about it as he is obligated to do. Profitability being a important ingredient, because it is important and it sets him apart from competitors. On top of that he has been telling us how he is improving efficiencies continuously. Rightly so, because establishing this company as major competitor means creating an efficient delivery machine. All this is actually not unimpressive.
Dilution has been real and was explicitely presented by the company as part of their growth strategy. It appears to be working.
Expansion has been top priority. Latest development is establishing a foothold into Oregon and the company is in talks with three takeover candidates. Having the ambition to acquire all three. Development of the shareprice has a profound effect on that, it is a the linking pin. Believing in the growth leads to shareprice increase, which leads to more growth by acquisition. Making Sunworks a more attractive partner. Belief/doubt is key for succesfull buying in cheap, which is the game going on. Isn’t that cute.
Utilizing a proprietary racking system as additional revenue stream is under construction.
All in all impressive, don’t you think? Well, I think so. I think Sunworks is on its way to becoming a major player. Obviously Q2 results will be telling and planned as another step on that road to mainstream, making it harder and harder to deny. Ever improving results combined with major development in bringing the cell technology to market will be irresistable. Which brings me to the conclusion that the window for deeper pockets to buy in cheap is closing, because there will be less and less opportunity to cause doubt in the muddy market.
What to do about Tom & Dick?
This is a good question. As investor you should never restrain yourself from new information, surely. Discussions between Tom and Dick do sometimes bring precisely that. But, there are certain bounderies you shouldn’t go beyond. Number one naturally is never let emotion rule your assessment. That guarantees failure. Number two is not listening to untruth, especially sources who have a history of delivering untruth. Not helpfull. Next to these obvious rules, I think a handy approach looks something like this:
Comprehension :You need to have some understanding about the item, have a clue so to say. Otherwise, it would be wise to obtain some understanding first.
Importance : Assess the importance of the item in your investment equation. Not important ? No further need to give it your attention.
Knowledge : This is about your own knowledge. Simply put: if you know better, no further need to give it your attention.
Agreement: Establish if Tom and Dick are in agreement about the item. Giving it a status better than a single opinion.
Add : Add the item to your own investment equation and decide what to do next. Does it alter your previous decision?
I think you could do considerably worse than going with Sunworks. In my opinion this company is going places. Be well and watch your G-spot.
