Stock Alert for Westinghouse Solar Inc. (WEST)
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    Stock Alert for Akeena Solar Inc. (WEST)

    Akeena Solar Inc., DBA Westinghouse Solar (NASDAQ: WEST) is a manufacturer and distributor of solar power systems. The Company’s award-winning patented solar panel technology reduces the parts count by 80% and labor costs by 50% relative to ordinary panels, while improving aesthetics, safety and performance. The Company has over 25 pending or issued patents related to solar panel installation technology. WEST sells its products across multiple channels that currently include a growing one-step distribution network of Westinghouse Solar authorized dealers throughout the U.S., Canada and Puerto Rico; as well as through retail at the Lowe’s Home Improvement stores, and OEM partnerships with companies such as leading HVAC equipment manufacturers.

    Share Statistics (25-July-11) FY2009 FY2010 % Chg Q12010 Q12011 % Chg
    Symbol WEST Revenue, $Mn 1.99 8.65 334.7% 0.73 1.99 172.6%
    Current price $1.64 Gross marg. 14.6% 14.5% -0.7% 16.4% 14.1% -14.0%
    52wk Range: $1.00-$3.64 Oper. margin -97.9% -87.6%
    Avg Vol (3m): 355,878 Net margin -796.0% -145.4% -81.7% -334.2% -65.8% -80.3%
    Market Cap. 18.66M
    Shares Outstanding 11.38M EPS, $ -1.31 -0.63 -51.9% -0.18 -0.20 11.1%

    Source: Reuters.com, SEC Filings.

    Recent News

    Shares of WEST spiked as much as 46% on Monday following news that home builder Lennar has selected the Company for solar powered new homes. WEST and Lennar inked a multi-year supply agreement under which WEST will deliver its award winning Westinghouse Solar AC systems to Lennar for certain new home communities as part of the latter’s “Everything’s Included” program.  Lennar has reportedly commenced this relationship in certain communities in Texas.

    “Lennar is a leader in building new homes with the energy efficient features that buyers want most. By providing a Westinghouse Solar Power System as a standard feature of its new homes, Lennar makes it easy for homebuyers to save on energy for decades to come,” WEST CEO Barry Cinnamon commented in the release.

    WEST shares soared to an an intraday high of $1.83 yesterday as trading volume increased to 2.61 million shares, nearly 23 times the 10-day average.  In the past 52 weeks, shares have traded between a low of $1.00 and a high of $3.64.  WEST is currently above its 50-day moving average of $1.60 and above its 200-day moving average of $1.85.

    Financial Summary

    WEST reported revenue from continuing operations of $2.0 million for the first quarter of 2011, up from $729,000 in the same period of 2010 and down from $3.6 million in the fourth quarter of 2010. The 173.4% year-over-year increase is attributed to the growth of the Company’s distribution network.  The sequential decrease is attributed to seasonally lower results in the first quarter due to weather conditions in certain markets.  The Company also posted an increase in distribution revenue in the fourth quarter of 2010 related to the transfer of panel sales from its remaining installation contracts.

    Gross profit from continuing operations for the first quarter of 2011 was $278,000 or 13.9% of revenue, compared to $115,000 or 15.8% of revenue for the first quarter of 2010, and $478,000 or 13.4% of revenue for the fourth quarter of 2010. The year-over-year decrease in gross margin is due to lower average sales prices and higher inventory overhead allocations in the first quarter of 2011, partially offset by lower panel and component costs. Gross margin increased slightly on a sequential basis.

    Net loss from continuing operations was $1.3 million in the first quarter of 2011, or $0.11 per share, compared to a net loss of $1.7 million, or $0.18 per share in the same period last year, and a net loss of $1.3 million in the fourth quarter of 2010, or $0.12 per share. The net loss includes favorable non-cash adjustments to the fair value of common stock warrants of $463,000 and $884,000 for the first quarters of 2011 and 2010, respectively, and $162,000 for the fourth quarter of 2010. Excluding the impact of the common stock warrant adjustments in all periods, net loss from continuing operations for the first quarter of 2011 was $1.8 million, or $0.15 per share, compared to a net loss of $2.6 million, or $(0.28) per share, for the first quarter of 2010, and a net loss of $1.5 million or $(0.13) per share, for the fourth quarter of 2010.

    WEST’s cash and cash equivalents totaled $3.2 million at March 31, 2011. There was no balance drawn on the Company’s $750,000 line of credit at the end of the quarter. Common shares outstanding were 11.6 million as of March 31, 2011, reflecting a one-for-four reverse stock split.  This compares to 9.3 million at March 31, 2010, and 11.4 million at December 31, 2010.

    WEST is schedule to report its second quarter 2011 financial results on Thursday, July 28, before the market opens

    Financial Strength (25-July-2011)

    Company

    Industry

    Sector

    S&P 500

    Quick Ratio (MRQ) 0.93 0.44 0.76 0.65
    Current Ratio (MRQ) 1.55 0.66 1.04 1.01
    LT Debt to Equity (MRQ) 0.19 26.22 14.05 125.71
    Total Debt to Equity (MRQ) 2.54 33.37 19.08 163.20
    Interest Coverage (TTM) -647.02 0.16 3.09 19.11

    Source: Reuters.com, SEC Filings.

    Analyst Consensus

    This is the consensus forecast among two polled investment analysts. Against the Westinghouse Solar Inc company.

    Analyst Detail

    Buy

    Outperform

    Hold

    Underperform

    Sell

    No Opinion

    Latest 0 0 2 0 0 0
    4 weeks ago 0 0 2 0 0 0
    2 months ago 0 0 2 0 0 0
    3 months ago 1 0 1 0 0 0
    Last year 1 0 2 0 0 0

    The two analysts offering 12-month price targets for WEST have a median target of 1.63, with a high estimate of 2.00 and a low estimate of 1.25. The median estimate represents a 30.00% increase from the last price of 1.25.

    Source: markets.ft.com

    Consensus Estimates Analysis

    # of Estimates

    Mean

    High

    Low

    1 Year Ago

    SALES (in millions)
    Quarter Ending Sep-11 2 4.75 5.00 4.50 18.40
    Quarter Ending Dec-11 2 7.55 9.00 6.10 19.80
    Year Ending Dec-11 2 16.65 17.90 15.39 65.70
    Year Ending Dec-12 1 33.50 33.50 33.50
    EARNINGS (per share)
    Quarter Ending Sep-11 2 -0.17 -0.13 -0.20 -0.20
    Quarter Ending Dec-11 2 -0.14 -0.11 -0.18 -0.18
    Year Ending Dec-11 2 -0.67 -0.53 -0.81 -0.83
    Year Ending Dec-12 1 -0.70 -0.70 -0.70

    Technical Analysis

     

    Source: http://stockcharts.com

    WEST is presently near its upper Bollinger Band. This suggests that it is at a high level relative to recent action.

    WEST’s MACD is currently indicating a weak bullish signal. Although the MACD is trending above the signal line, the indicator is still below 0, which suggests that the underlying moving averages are bearish.

    Comparative Analysis

    Company Name Ticker Price per Mrkt. Cap. P/E P/S
    July25-2011 symbol Share, $ $ Mn 2011 2012 2011 2012
    Entech Solar Inc. ENSL 0.08 29.74M n/a n/a n/a n/a
    Real Goods Solar Inc. RSOL 2.82 51.70M 21.69 11.75 0.47 0.32
    Evergreen Solar Inc. ESLR 0.31 11.72M n/a n/a 0.09 0.08
    Electronics Wholesale Median       7.97 n/a 0.28 n/a
    Westinghouse Solar Inc. WEST 1.64 18.66M n/a n/a 1.12 0.56

    Source: Thomson Financial

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