Hot LED and Energy Play

Written by GSCR Staff   
Thursday, 24 October 2013 06:57

We will finish out our blogs this week in keeping with our overall theme of small cap energy and technology.

 

Orion Energy Systems (AMEX – OESX - $4.04) is a diverse company that plays in the red hot LED and solar PV space along with providing energy consultation and management services. The Company operates in two segments, Energy Management and Engineered Systems. It develops, manufactures, sells, and provides technical services for the sale of commercial high intensity fluorescent (HIF), light emitting diode lighting, and energy management systems. The Company also offers Apollo Solar Light Pipe, a lens-based device that collects and focuses renewable daylight, bringing natural light indoors without consuming electricity; and InteLite wireless dynamic control products that allow customers to remotely communicate with and give commands to individual light fixtures and other peripheral devices through Web-based software. In addition, it offers HIF fixtures to address the lighting and energy management needs, including agribusinesses, parking lots, roadways, outdoor applications, and private label resale. Further, the Company distributes solar photovoltaic systems, as well as offers integrated solar power services, such as project development; engineering, procurement, and construction; operation and maintenance; and project finance services. Additionally, it provides energy management services, including comprehensive site assessment, site field verification, utility incentive and government subsidy management, engineering design, project management, installation, and recycling, as well as offers power data management and cloud-based data storage and related services.

Orion Energy Systems continues to innovate with the launch of its ISON™ Class LED earlier this year. The product is part of the Company’s ‘smart building’ energy products and offers a variety of benefits over the competition including providing a unique combination of LED and fluorescent lighting along with several retrofit options for many applications.

OESX’s technical chart looks great as the technical analysis for Daily Moving Average from 5 to 50 days is very bullish. This is a nice signal for some short term gains.

Finally, the Company is expected to report fiscal 2Q14 on November 6th. The forecast for revenue is $25 million, which would be nearly a 20% increase from 1Q14. This would continue a positive sales growth trend and put Orion on track for the current Street forecast of around $100 million for FY14, a 15% jump from FY13.

We think this stock could pass the $5.00 mark over the next month or so.

Have a great day!

Disclosure: Goldman Small Cap Research analysts are neither long nor short these shares but may elect to purchase the stock within the next 48 hours.

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