Replies to post #1187 on Energy Focus Inc (EFOI)

[FUNMAN]

I like EFOI, and hope you are right. Give it a month though. Unless they are going to start making it a habit to announce big deals on a regular basis the price is going to start to settle to a reasonable forward EPS multiple based on fundamentals. It won't be priced based on hype.

That's a good thing because it will be fairly valued. So when it dips and appears undervalued I'll be able to add a 3rd position to my holding, and more later.

I first came to EFOI on November 2013. Caution prevailed :-(

My 2nd addition was only last week. Pretty lucky. It wasn't brain power, otherwise I would have bought much more 2 weeks earlier for 50¢ less.

I missed out on big accumulation. Now it's a penny stock with a tiny market cap, and a big PPS. I will be adding on dips between Q's and new customer announcements.

I firmly believe that during the last 18 months management had a terrific plan to re-focus & re-capitalize the company, re-stock the BoD, staff up the marketing department, gear up manufacturing capacity, and line up new prospects who crave lowering their energy costs.

They knew what they were doing ahead of time. they had a plan and worked the plan. I wasn't an accident. I want to invest in people like that.

[FUNMAN]

Don't feel bad about today's drop. Yesterday's news is out and old already. There isn't any new news to back it up.

EFOI needs a steady stream of deals and new customers to sustain the PPS gains. I believe that's in their future.

The drop was inevitable. Some people took profits. Most are poor souls who bought high hoping for the momentum to continue without doing a stitch of research into EFOI. They got trapped. Their choice is "to-go-long" or bite the bullet to get out and put their money to work elsewhere. That's what's happening.

The really good news is because EFOI has so few outstanding shares, when they start adding a few more customers consistently (count on your fingers and get to your second hand, that's all they need now), good things will happen.

Throughout the year when they announce those contracts, it will be easier to believe more will follow. Once that confidence occurs, revenues will be sustainable, EPS will grow, and a higher and higher PPS will be supported based on fundamentals.

I believe they are very capable of doing that. EFOI is a good long bet. It's just tough for me to shell out real dough to amass leverage. The risk is still pretty high.