Power-Saving Lighting Firm Going Public, More ‘Green’ To Go
Posted by Blain Reinkensmeyer
December 4, 2007 at 4:16 pm
Found a great article on the newest company to be going public that falls under the ‘green’ category of energy conservation.
As most investors should know last year was all about ethanol, and this year it seems that solar is the #1 choice as stocks like First Solar (FSLR) have had fantastic runs in 2007. Are fluorescent lamps the next big trend?
From the article:
Orion Energy Systems is offering a version of green energy that sounds rather old-fashioned: fluorescent lamps. Though you may feel like you’re under fluorescent lights all the time, in fact the tubes have traditionally been used only for ceilings lower than 15 feet or so. For big rooms — like warehouses and factory floors — they’re too dim and diffuse.
Orion, though, offers high-intensity fluorescent, or HIF, lighting. Thanks to technological fiddling, HIF is bright enough to light even humongous indoor spaces. And, like changing your round light bulb for a corkscrew one, it saves users a lot of energy.
As oil and gas prices have gone through the roof, many businesses have found HIF to be a worthy investment. Orion has installed nearly a million of them in the last nine years.
Orion Energy Systems was founded in 1996 and since its inception has installed about 970,000 lighting systems. The company has now just started to become profitable, and for the last year and a half has been cutting a positive bottom line. Competitors include Cooper Industries (CBE), Ruud Lighting, and Acuity Brands (AYT).
Other info from the article:
THE RESULTS
Revenue in the six months ended Sept. 30 — which constituted the first half of fiscal 2008 — rose 73% from a year ago to $35.1 million. Net income went from $5,000 to $1.8 million.
USE OF PROCEEDS
Orion expects to raise $64.9 million from the offering of 7.7 million shares, or $78.8 million if the underwriters exercise their options in full. It does not have specific plans for the money, but Orion says it will use it for working capital and general corporate purposes.
The stock will trade under ticker OESX, and is expected to have an offering price of $12 - $14 with its IPO date to be set anytime now. The lead underwriter is Thoms Weisel Partners.
Are you a ‘green’ investor?
Source:
Power-Saving Lighting Firm Rolls Out Next ‘Green’ IPO
Amy Reeves
Investor’s Business Daily
http://www.investors.com/editorial/IBDArticles.asp?artsec=26&issue=20071203
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I do have a few green stocks including Evergreen Solar and MEMC. This stock looks interesting. I will be looking into in a little more detail. Thanks for the tip!
fluorescent lamps = MONEY SAVERS
We did a test two years ago on converting all of our bulbs in one of our apartment complexes, 210 units, to fluorescent. That year alone we saw an annual electrical savings of over $35k. Crazy when you think about. They use less energy and last longer AND don’t really cost much more than a conventional bulb! Ingenious!
Hey Blain,
I’m glad I got to check out your blog! Wow it’s filled with a lot of awesome information. Your post there on the new “green stocks” is very interesting. I can imagine with the current state of the oil situation, many people are looking to “new” power sources or at least alternative ones. I remember quite a while ago that information on solar power came out, but it seemed only like something for the “future,” now it’s here and apparently a staple in the energy industry. I’m going to definitely check on this stock. Thanks for all of this!
Kristen