Real Goods Solar, Inc. (NASDAQ: RGSE)
Real Goods Solar is having an incredibly strong day in the market today. While we're only a few minutes into the session thus far, the stock is already trading with overwhelmingly impressive gains, and it looks like it will continue on that path. Below, we'll talk about what we're seeing from the stock, why, and what we'll be watching for with regard to RGSE ahead.
What We're Seeing From RGSE
As mentioned above, Real Goods Solar is having an incredibly strong day in the market today. The gains started in the pre-market hours as the company released a business update. While the market has only been open for a few minutes, the stock is continuing on gains, making for a great trading session so far. Currently (9:40), RGSE is trading at $2.41 per share after a gain of $0.41 per share (20.59%) thus far today.
Why The Stock Is Up
As is almost always the case, our partners at Trade Ideas were the first to alert us to the gains on RGSE. As soon as we received the notification, the CNA Finance team started digging to see if we could dig up the cause of the gains. It didn't take long to find the culprit. The gains are ultimately the result of excitement surrounding a business update.
Early this morning, the company provided an update following its recently completed offerings that raised approximately $16 million. In the update, pro forma unaudited results that included additional capital and debt repayments as of December 31st were offered. In a statement, Dennis Lacey, CEO at Real Goods Solar, had the following to offer:
“Since our last business update, we successfully took advantage of capital market opportunities and raised additional financial capital... As planned, we are now Nasdaq compliant. We also have a much stronger balance sheet which is debt-free. Our focus is on executing our growth strategy. For this purpose, we have recently expanded our sales organization, including our on the ground field sales teams and our call center based sales team. We will continue to expand our sales organization this year. Additionally, we are currently competing for solarize programs across the East Coast.
Last year, our financial position made it challenging to win solarize programs... This year, however, we expect that our much stronger financial position will enable us to be the chosen installer for solarize programs.”
What We'll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping tabs on RGSE. In particular, we're interested in following along with growth after the recent news. We'll keep an eye on the story and continue to bring you the updates as they break!
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