Clear Skies Solar (CSKH) – The Importance of Today’s News – Remains Our Top Pick
by Joe on February 2, 2010
Clear Skies Solar (CSKH) – The Importance of Today’s News – Our Top Pick – In Our Opinion, Shares Undervalued by Two Thirds
Our Top Pick – Clear Skies Solar (CSKH) is out with important news this morning. The announcement is for the signing of a rooftop solar project in New Jersey that is funded by G&S Investors Group, a large developer of income producing properties in the Northeast of the United States. National tenants include Costco, Target Borders books, Bed Bath & Beyond, Marshals, Loews theaters, Home Depot and many other major retailers. G&S is instituting a major solar building program for their many significantly sized properties. We think today’s announcement is just the tip of the iceberg of signed deals in the CSKH pipeline.
We believe the deal being announced today is the first of many with G&S Investors, that when combined with other large projects in the CSKH pipeline, will drive very strong revenue growth during 2010. In our opinion, there is likely a pipeline of business with G&S many times greater than the initial $800,000 deal being announced today.
With the extension of the federal income tax credit through 2016, the introduction of many state and local government incentives, record low solar module prices and a general renewed interest in solar energy, the market environment for solar power implementation has never been brighter. Most importantly, however is that many of the large solar projects that have been on hold due to the inability to find financing are now getting under way as financing is freed up. We believe these trends will drive substantial profits for Clear Skies in 2010.
Let’s take a look at what this company has been telling us over the past few weeks. On January 19, the CEO issued a shareholder letter. In that letter he offered the following quotes, 1) “The credit markets are clearly starting to open up and we now have several large projects which are in the final stages of approval” 2) “We are very positive about the prospects for our future” 3) “We currently have more than $100 million of active proposals” 4) “We are expecting to realize considerable revenue growth during 2010 5) “We urge all of our shareholders to closely monitor our upcoming announcements. 5) “We believe 2010 will be an exciting year…. ” …And Today, 1) “This project is the first of several signed CSS contracts on both the East and West coast to obtain funding.” 2) “We are clearly excited about the resurgence of financing within the solar energy space and look forward to the strong growth we expect to realize through the rest of the year.”
I am not sure when I have seen a CEO make comments as positive as these. With the federal government firmly backing solar installations, the upcoming federal jobs bill likely containing specific language about job creation within the solar industry, strong state and local solar energy related incentives in place, a resurgence in financing for solar projects, what we believe to be a major pipeline of business directly with G&S Investors, combined with a strong pipeline of other solar projects, we believe there is compelling evidence to point to very aggressive revenue growth for this company over the coming months.
As CEO Ezra Green has stated and we reiterate, “We urge all shareholders to closely monitor upcoming announcements. We believe 2010 will be an exciting year for Clear Skies Solar, Inc.”
Clear Skies remains our top pick out all of the small-cap names we currently cover. We believe these shares are undervalued by at least two thirds.
News 
Market Data 
Discover 
