Orion Energy OESX oversold into support on news
Orion Energy helps businesses convert to more energy efficient lighting. Their business is growing rapidly in the LED area where they are seeing huge energy savings over fluorescent bulbs.
The recent slide came about from the announcement of a shelf-registration of significant size of $75 million when the market cap was $160 million (with the stock at $8/sh). Orion has made acquisitions before but this large offering of debt and/or equity has scared equity holders.
OESX has solidly growing revenues, mostly through acquisition, and a growing presence in LED with high profit margins in the 31% range (from November company release).
My strategy: I want to buy OESX when it is oversold and exit when it is overbought for the next year or two as they continue to execute on their business plan.
Disclosure: I have no position in OESX.
11:41AM EST 6.25 last, -0.39 or -5.87% Jan 24, 2014
The recent slide came about from the announcement of a shelf-registration of significant size of $75 million when the market cap was $160 million (with the stock at $8/sh). Orion has made acquisitions before but this large offering of debt and/or equity has scared equity holders.
OESX has solidly growing revenues, mostly through acquisition, and a growing presence in LED with high profit margins in the 31% range (from November company release).
My strategy: I want to buy OESX when it is oversold and exit when it is overbought for the next year or two as they continue to execute on their business plan.
Disclosure: I have no position in OESX.
11:41AM EST 6.25 last, -0.39 or -5.87% Jan 24, 2014
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