|Written by GSCR Staff|
|Tuesday, 10 March 2015 06:59|
In yesterday’s Goldman Guide we predicted a positive uptick in three sectors; alternative energy, biotech, and consumer apparel stocks.
Biotech is no surprise for small cap, but there are some great plays emerging in alternative energy as we mentioned yesterday. This is a little surprising, given the cheap oil and gas prices throughout the globe. Many solar stocks have been, pardon the pun, on fire.
Enphase Energy, Inc. (NASDAQ – ENPH - $14.18) is an emerging stock that has materialized into a solid play. The Company, together with its subsidiaries, designs, develops, and sells microinverter systems for the solar photovoltaic industry. Its microinverter system consists of the Enphase microinverter and related accessories that convert direct current power to grid-compliant alternating current power. The Envoy communications gateway device collects and transmits performance information from each solar module to the Company’s hosted data center. The Enlighten Web-based software platform collects and processes this information to enable customers to monitor and manage their solar power systems. Enphase Energy, Inc. markets and sells its products primarily in the United States, Australia, Canada, France, the United Kingdom, China, and Italy, as well as in the Benelux region.
ENPH indicates a very bullish EMA signal from 50 to 200 days. A an average CAGR over 25% for 2015 and 2016 revenue over 2014 indicates there is still value in the stock with only a 17 forward P/E and a 5-year PEG at 1.5. The Company also has no debt as of December 31, 2014 with over $42 million in cash.
Positive deal flow should make ENPH heat up. A couple weeks ago the Company announced a strategic partnership with the French firm, MyLight Systems, to supply its Enphase Envoy system to be integrated into the MyLight monitoring system and will become the exclusive monitoring technology for the photovoltaic (PV) arrays embedded with MyLight’s advanced energy management solution.
We think the stock continues its positive momentum up to $16 by the middle of the summer.
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.
This Market Monitor blog was prepared for informational purposes only. Goldman Small Cap Research, (a division of Two Triangle Consulting Group, LLC) produces research via two formats: Goldman Select Research, which typically highlights small cap companies, and Goldman Opportunity Research, which features micro cap companies in a sponsored research format. Thus, the Select product reflects the Firm’s internally generated stock ideas while the Opportunity product reflects sponsored research reports.
Goldman Small Cap Research is not affiliated in any way with Goldman Sachs & Co.
It is important to note that while we may track performance separately, we utilize the same coverage criteria in determining coverage of all stocks in both research formats. Please view the company’s individual disclosures for each engagement, which can be found in each company-specific report. All information contained in this blog, newsletter and in our reports were provided by the Companies or generated from our own due diligence. Our analysts are responsible only to the public, and are paid in advance to eliminate pecuniary interests, retain editorial control, and ensure independence. Analysts are compensated on a per report basis and not on the basis of his/her recommendations.
The information used and statements of fact made have been obtained from sources considered reliable but we neither guarantee nor represent the completeness or accuracy. Goldman Small Cap Research did not make an independent investigation or inquiry as to the accuracy of any information provided by the Company, or other firms. Goldman Small Cap Research relied solely upon information provided by the Company through its filings, press releases, presentations, and through its own internal due diligence for accuracy and completeness. Such information and the opinions expressed are subject to change without notice. A Goldman Small CapResearch blog, report, note, or newsletter is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed.
This blog does not take into account the investment objectives, financial situation, or particular needs of any particular person. This blog does not provide all information material to an investor’s decision about whether or not to make any investment. Any discussion of risks in this presentation is not a disclosure of all risks or a complete discussion of the risks mentioned. Neither Goldman Small Cap Research, nor its parent, is registered as a securities broker-dealer or an investment adviser with FINRA or with any state securities regulatory authority.
ALL INFORMATION IN THIS BLOG, REPORT OR NEWSLETTER IS PROVIDED “AS IS” WITHOUT WARRANTIES, EXPRESSED OR IMPLIED, OR REPRESENTATIONS OF ANY KIND. TO THE FULLEST EXTENT PERMISSIBLE UNDER APPLICABLE LAW, TWO TRIANGLECONSULTING GROUP, LLC WILL NOT BE LIABLE FOR THE QUALITY, ACCURACY, COMPLETENESS, RELIABILITY OR TIMELINESS OF THIS INFORMATION, OR FOR ANY DIRECT, INDIRECT, CONSEQUENTIAL, INCIDENTAL, SPECIAL OR PUNITIVE DAMAGES THAT MAY ARISE OUT OF THE USE OF THIS INFORMATION BY YOU OR ANYONE ELSE (INCLUDING, BUT NOT LIMITED TO, LOST PROFITS, LOSS OF OPPORTUNITIES, TRADING LOSSES, AND DAMAGES THAT MAY RESULT FROM ANY INACCURACY OR INCOMPLETENESS OF THIS INFORMATION). TO THE FULLEST EXTENT PERMITTED BY LAW, TWO TRIANGLECONSULTING GROUP, LLC WILL NOT BE LIABLE TO YOU OR ANYONE ELSE UNDER ANY TORT, CONTRACT, NEGLIGENCE, STRICT LIABILITY, PRODUCTS LIABILITY, OR OTHER THEORY WITH RESPECT TO THIS PRESENTATION OF INFORMATION.
For more information, visit our Disclaimer: www.goldmanresearch.com