Yesterday, breaking up the sideways moves, ENER suddenly emerged. The stock jumped up by 13.32% and closed the market at $4.51 on a more than seven times the average trading volume of over 8 million shares.
It seems that on yearly basis ENER’s operation have not become profitable this year, as the company reported yesterday declining total revenues and a net loss of $456 million as compared to a net income of $8,5 million last year. The entire goodwill and intangible assets had to be written off due to impairment losses and the assets of ENER decreased by more than one and a half times. Further, ENER has a nearly $244 million liability in the form of convertible senior notes.
Since its inception, ENER’s business has not achieved sustainable profitability and the accumulated deficit is $772.5 million. Though, the solar energy industry is hot and investors yesterday must have acknowledged some advantages and positive features of the company, whose stock appears currently highly undervalued when compared to the market’s valuation for similar companies from the same industry.
One of the company’s achievements is its cooperative agreement with the Department of Energy under the innovative Solar America Initiative. The agreements ends up in February next year, but until then ENER will receive a total amount of $19 million to increase the efficiency of its photovoltaic products and to work on innovative installation methods that should cut the overall costs. Also recently, ENER introduced its “Technology Roadmap”, which is aimed at improving conversion efficiency.
