Enphase Energy Inc (ENPH)

[royallen]

I sold all of my small position today. I love the technology but see a rocky road ahead for the company.
They are on the path to a $70,000,000 loss this year.
Revenues are down from 2015.
Margin is half of 2015.
Expenses are up.
2 large financing events with a firm that specializes in "rescue" financing that furnishes capital to avoid restructuring or insolvency.
Massive dilution.
They are executing a cost-cutting plan while trying to bring to market two critical products on time and on spec. This would be hard enough under normal circumstances but cut backs and surprise lay-offs will make this tougher. You have a company that was filled with idealistic techies doing their part to save the world. Now they are in dire straights with a management focused only on money. I guarantee you that morale is in the toilet. Reduced staffs are working 60 hour weeks with no end in sight. Their stock options have cratered. Soon if not already the good ones will abandon ship leaving the least motivated and capable to do the most difficult tasks. They are not going to get the next generation inverter out in time so management will ship whatever they have and deal with the problems later. During the conference call we were promised deals with LG, Jinko, and one other manufacturer starting early or mid 2017. They can't afford to not ship so they will ship whatever they have.