Today RGSE news comes out that they struck an exclusive deal with DOW chemical for exclusive rights to their proprietary solar roofing tiles.
Their stock which has lost like $1400 PER SHARE over 3 years 50 THOUSAND DOLLARS PER SHARE (not a typo) over the last 6, and 3 reverse splits was trading at .80 cents as of yesterday and as of writing has exploded 300% to peak over 3.20 and take their market cap from 6Mil, to over 20M in just a few hours time.
The interesting thing about this is "why" would DOW do an "exclusive" deal with a company that appears to be so close to a zero. They had revenue of ONLY 2, 3, 3 and 5 million the last 4 quarters with net losses of 7, 10, 4 and 4 million. They are losing almost double the money they they are taking in each quarter.... None of this makes any sense.
Compare that to SUNW.
Revenue, 17, 18, 14 and 25, with net losses of 6, 3, 3 and a net profit last quarter of 1 million.
They are in the same business.
What's ironic is the supposed "checkered history" of SUNW, with their "proprietary cell"... and now, RGSE has their own "magic cell"...
RGSE has had 3 RS's 20:1 or better, ... SUNW only one to get listed on the exchange a few years back.
RGSE has been shrinking year over year for years to a tremendous degree.
SUNW has been growing year over year to a tremendous degree.
So what gives here?
Was RGSE just being shorted all to death- and they got caught? Is SUNW being shorted just the same and will pop when good news occurs?
If I had to pick a balance sheet to put my money on it would be SUNW.
If I had to pick a growth story...SUNW.
If I had to pick which I thought would be in business still in 2 years, SUNW.
If I had to pick one to recommend to loved ones, SUNW.
It all makes sense... except that RGSE market cap is now 2/3 that of SUNW. Meanwhile SUNW just had a 8.5MW contract awarded, and another 1MW contract with a potential 9MW add on's.... SUNW cell- well it does have a patent in China... RGSE simply has a "deal with DOW" so that nobody can install this but RGSE.. the question is- "Can RGSE even install it?!?!" "Will anyone even buy it when compared to Tesla solar shingles?"
Thoughts?
Only invest what you want to lose.
