Blue Earth Inc. (OTC:BBLU) made a few impressive gains over the past days. Yesterday, the stock soared another 11.43% on the
market to close the day at $1.95 per share. Looks like BBLU aims $2.00 per share, though it is not certain it will reach them.
Apparently, the up move started on the latest news by BBLU. A few days ago, the company announced it has acquired Xnergy, Inc., a California based energy services company. Pursuant to the agreement and Plan of Merger, BBLU purchased all of the capital stock of Xnergy for a purchase price of approximately $15 million.
The agreement news certainly pushed up BBLU stock price at once and now it is interesting what its next move will be.[BANNER]
Blue Earth is engaged in the clean technology industry with a primary focus on the energy efficiency and renewable energy sectors. According to its last 10-Q report, the company has more assets than liabilities in its balance, however, its accumulated deficit exceeds $11 million. Revenues of BBLU have also increased, though the company has other losses to cover.
Based on its financials, the management expects that it has sufficient cash and borrowing capacity to meet its working capital needs for at least the next 12 months. However, the company’s continued net operating losses increase the difficulty of meeting their goals, and the efforts to continue as a going concern may not prove successful.
