Clear Skies Solar, Inc. (OTC:CSKH) price is stepping down from the inflated levels it got to after the company reaffirmed $15 million in revenues guidance for the fiscal 2010.
The sudden spike in price was however shadowed by the recent issuance of 14 million new shares, collectively to Chevra Toras Chesed and Congregation Kehal Yerayim Ateres Zvi, at prices way below the current market value. Even if the new holders aren’t dumping, we’re witnessing a huge selling pressure on profit taking.
In the news that triggered the breakout, the company said they expect to have bagged $15 million in revenues by the end of the fiscal 2010. This means at least $13 will be generated during the third and fourth quarters. The projected margins of 12% to 15% are however considerably small.[BANNER]
Even if this is a single time achievement, on announcement the company’s value will be adjusting itself from the current market cap of around $6 million.
The number of outstanding shares is however huge, totaling over 130 million not counting the one issued recently, so the per-share price isn’t likely to get a lot higher on revenue declaration. Considering the income will be non-recurring, the price could temporarily shoot up to 15-20 cents, which would already put the market cap at $18-$24 million. Higher values would be temporal, but even at 15 cent the stock would still become a 3-bagger from the current price.
