Thursday, November 6, 2014

Spire (SPIR) -- Is It Going Belly-Up?

Spire (SPIR) is an important stock for the GDT::Portfolio. SPIR has recently bounced off of it's 52-week low and I think it's because of a couple of recent press releases. The first had to do with the company raising some cash.
Over the term of the transactions described herein, Spire expects to achieve an approximate $5 million cash benefit, all of which, if achieved, can be used to support ongoing operations and grow the business.
There are approximately 9.21 million SPIR shares, $5 million is roughly $0.54 per SPIR share. SPIR closed yesterday (02014.11.05) at $0.41.

On 02014.10.31, Spire had a press release titled Spire Receives Prestigious Solar Power World Award for Leadership in Solar. In that press release Spire stated the following:

Based upon our recent activities, revenues recognized to date and expected shipments, for the remainder of 2014 we anticipate a doubling of our 2013 solar business volume and coupled with the increased level of client inquiries, we certainly feel that the forecasted demand for turnkey lines has now materialized and will extend into 2015.

SPIR closed on 02014.11.05 at $0.41. 52-week range: $0.20 - 1.17. The stock is priced as if Spire is going out of business any day now. At its current price SPIR has a Price-Sales-Ratio of 0.23 and a market value of only $3.73 million.

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