Orion Energy Systems, Inc. (NASDAQ: OESX)
Orion Energy Systems is having a rough day in the market today. For many, today’s declines in the market are shocking, considering the gains we saw yesterday. Yesterday, the company made a big announcement with regard to its appointment as a lighting manufacturer. Today, we’ll talk about the news, why we’re seeing declines today, and what we can expect to see from OESX moving forward. So, let’s get right to it…
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OESX Is Appointed As Lighting Manufacturer For Large Retailer
As mentioned above, Orion Energy Systems made a huge announcement yesterday. The company announced that it had been appointed as the lighting manufacturer for a major retailer. The retailer involved, while not named, has more than 700 locations in its region.
Under the terms of the agreement between OESX and the new retailer, Orion will supply LED retrofit lighting systems. The systems will be designed for upcoming lighting programs at the retailer’s facilities over the next two to three years. The lighting solutions will be provided at an average site cost of around $65,000.
While the new retailer will be using several products, the primary product chosen by the retailer is the latest addition to the OESX LED LDR Troffer Retrofit series, the HARRIS LED LDR Troffer Retrofit Edge. This is the industries first patented LED troffer retrofit contained with the door frame.
Following the news, John Scribante, CEO at Orion Energy Systems, had compelling comments to offer. Here’s what he had to say:
“Orion is proud to be appointed the lighting manufacturer for this retailer… This is great news for Orion, our employees, and our vendors. The quick acceptance of our new LDRE proves once again that Orion is leading the industry in innovative LED lighting retrofitting products. Because of this success we are expanding our assembly lines and adding staff to our facility in Manitowoc, Wis. to meet the demand for our new LDRE product.”
How The Market Reacted To The News
As investors, one of the first things that we learn is that the news moves the market. Any time positive news is released with regard to a publicly-traded company, we can expect to see gains in the value of the stock associated with that company as a result. Following the news of the new appointment, OESX climbed dramatically, gaining well over 10%. However, today, we’re seeing declines. Currently (12:36), the stock is trading at $1.21 per share after a loss of $0.07 per share, or 5.35%.
Nonetheless, I have to say that I’m not worried about the declines we’re seeing. The truth is that price movements in the market tend to happen through a series of overreactions. After the dramatic gains realized yesterday, it only makes sense that we would see a correction today before gains could continue. All in all, OESX drop is neither surprising nor concerning.
What We Can Expect To See Moving Forward
Moving forward, I have an overwhelmingly bullish opinion of what we can expect to see from Orion Energy Systems. The company has done a great job with their newest product offering, and the work on that offering is proving to become profitable. As the company continues to expand its lighting products and work hard to sell them, we’re likely to see big gains in the future. All in all, I’m looking forward to gains on OESX ahead.
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What Do You Think?
Where do you think OESX is headed moving forward and why? Join the discussion at TalkTRENDZ from CNA Finance.
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