iSun, Inc (NASDAQ: ISUN) has experienced a significant surge of over 88% since November 22nd, 2023, with 12% of that increase observed within the current trading day. Similar to other Nasdaq-listed companies facing minimum bid requirement challenges, iSun has witnessed this remarkable upswing without any corresponding press releases or SEC filings to justify the sudden uptick. Looking further, we aim to uncover the underlying factors propelling this sudden rise by examining the company’s recent material events and financial performance, providing a comprehensive evaluation of what the future might hold for ISUN.

Background:

ISUN’s been in business since 1972, so quite a long while. After 47 years of being private, they decided to go public in June, 2019 and were previously known as The Peck Company.

Following the acquisition of ISUN, the company underwent a name change, becoming the entity known today. They have since taken the lead in integrating influential electrification technologies.

With a longstanding reputation as a reliable service partner for Fortune 500 firms, ISUN has a track record of installing various technologies, including clean rooms, fiber optic cables, flight simulators, and over 600 megawatts of solar systems.

The company offers an extensive array of solar services covering residential, commercial, industrial & municipal, as well as utility-scale projects.

Highlighting the importance of shifting towards clean, renewable solar energy, it’s worth noting that ISUN is committed to seizing profitable growth opportunities by offering solar electric vehicle charging solutions for both grid-tied and battery-backed systems.

Latest Earnings:

Unlike the last few write ups, we’re fortunate to have access to more informative press releases and SEC filings for ISUN. That said, let’s talk about their latest earnings and how the business is currently performing.

Highlights by numbers:

• Q3 2023 revenue of $27.9 million, up 47% from Q322, as continued strong commercial and industrial execution drives growth
• YTD revenue of $70.3 million, up 39% over first nine months of 2022
• Gross profit of $5.4 million, up 50% from Q322
• Gross margin of 19.45%, up 45 basis points from 19.0% in 2022’s third quarter, as benefits from synergies were offset by mix
• Awarded $27.0 million in new solar and EV infrastructure contracts in Q3 2023, with a total of $67.0 million in first nine months of 2023
• Continuing successful execution of growth strategy, leveraging tailwinds

Okay great, both the revenue and profit margins are moving in a positive direction. In this market, let’s be honest, what truly matters is whether this long-standing company can generate profits while tackling the substantial growth potential in renewable solar energy projects.

There’s a few things worth noting from this release, the bigger point being the heavy tailwinds pushing them into record growth this year. Their commercial and industrial division showed impressive growth, achieving a 47% revenue boost and a 45 basis point increase in margins compared to the previous year. Despite challenges due to higher interest rates for residential customers, the team remains focused on seizing opportunities driven by climate policies and growing interest among customers in alternative energy solutions.

On another front, their operating loss in Q323 was ($1.8) million, a $3 million or 64% improvement compared to a loss of ($4.9) million in Q322. The cause for this? Higher revenue and lower operating expenses.

To be frank, the majority of CEOs across various industries anticipate higher productivity with fewer resources, which can be a continual source of high stress for employees actually accomplishing the daunting dask. Nethertheless, ISUN is achieving record growth with ease…

As a final thought on operating income, their YTD loss was ($6.2) million, a $10 million or 62% reduction compared to a loss of ($16.2) million during the same period in 2022.

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Thoughts from the CEO:

“We continue to make substantial progress towards the targets we set for iSun’s performance this year, as we execute on our strategy and fulfill our commitments to investors. We remain confident that our expanded capabilities effectively address the needs of more customers and position us to accelerate our growth in the evolving alternative energy sector. Our continued success in winning significant contracts with existing and new customers reflects the appeal of our platform approach that delivers a suite of services to meet the needs of diverse customers. This year, we are also benefiting from the expertise of our team in executing efficiently on our backlog to address our customers’ needs and leveraging the relationships and partnerships we have established. Now that our country’s energy policy has been established for the next 10 years through the IRA legislation passed in 2022, we expect those factors to help us scale our operations significantly in the next few years, no matter what macroeconomic challenges may persist, and thus enable us to generate steadily higher revenue and reach operating profitability in the years ahead.”

Thoughts from Retail:

Several types of traders on Twitter are actively discussing ISUN, many with tens of thousands of followers. One in particular with a 72.1K following on Twitter, @MoonMarket_, mentions he’s accumulating for potentially larger moves ahead, based on technical trends.

@greatstockpicks and @FrankieBstock, with a combined following of 58.4K, are also actively discussing ISUN. Their sentiments lean positively, indicating that the deeper they dive into the company, the more appealing it appears.

Frankie also highlights, “Wainwright has a .50 target…given the revenue, growth, low offering risk and 161m backlog I could see it going higher but let’s focus on .50 with a stop loss around .12”.

It’s certainly encouraging to witness higher attention from influential sources discussing a stock, but it’s always crucial to conduct your own research and form an independent judgment.

Ultimately, all we can do is hope for the best regarding anyone’s analysis, even reputable analysts. While they are probably more reliable than figures like Cramer, who is often criticized for his inaccuracies concerning small-cap stocks, it’s essential not to take opinions as absolute truths.

Analyst Coverage:

As mentioned, analysts might not always be the most accurate to follow, but it’s usually reassuring when individuals with robust financial backgrounds, widespread industry connections, and expertise provide their insights on a public company.

ISUN is presently under analysis by three different firms: Alliance Global, Roth Capital Partner, and H.C. Wainwright & Co. They have set varying buy recommendations and price targets for the company, with a low, median, and high range of $0.50, $2.00, and $2.75, respectively. That’s a monumental 127.4%, 809.9%, and 1151.1% increase should ISUN meet those expectations.

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What’s Next:

ISUN seems to primarily focus its market updates on financial aspects. Upon reviewing all their 2023 releases, they consistently highlight robust execution and growth, reinforcing the anticipation of total revenue reaching $95-100 million this year, indicating a 24-31% surge compared to 2022.

As mentioned earlier, ISUN currently operates at a loss, and often experiences fluctuating quarters due to the impact of high-value contracts. These contracts can significantly influence the company’s financial results.

Thankfully, ISUN holds a total backlog of $161.8 million as of September 30, 2023, ensuring a stable revenue stream as projects are finalized. The bulk of this backlog, approximately $140.3 million, pertains to commercial and industrial applications, projected to be finished within a span of 10-18 months.

As is common with non-profitable businesses, it’s crucial to stay watchful for potential near-term dilution. Fortunately, ISUN recently secured term sheets for a non-dilutive $8 term loan, providing a reassuring stance for the time being. Should the management maintain this level of execution, achieving profitability may not be far off and would be a substantial milestone.

Regarding Nasdaq’s minimum bid requirement of $1.00, ISUN received an extension until May 2024, aiming to facilitate an organic increase in their stock price without the risk of a reverse split.

Conclusion:

With a long-standing history and a shift towards electrification technologies, ISUN’s dedication to renewable solar energy and diverse services positions it for substantial growth.

The overarching market trend aligns favourably, offering support to their endeavours, while the management team’s restructuring on cost efficiencies bode well for near term profitability. Their recent earnings demonstrated substantial revenue growth, particularly in their commercial and industrial segments where they’ve overcome significant market challenges.

In the realm of undervalued micro-cap stocks listed on the NASDAQ, ISUN emerges as a compelling candidate worth monitoring closely.

We will update you on ISUN when more details emerge, subscribe to Microcapdaily to follow along!

Disclosure: We have not been compensated for this article/video. MicroCap Daily is not an investment advisor; this article/video does not provide investment advice. Always do your research, make your own investment decisions, or consult with your nearest financial advisor. This article/video is not a solicitation or recommendation to buy, sell, or hold securities. This article/video is our opinion, is meant for informational and educational purposes only, and does not provide investment advice. Past performance is not indicative of future performance.

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Over the past month, BlueFire Equipment Corporation (OTC: BLFR) has witnessed an astounding surge of 1900%, soaring from its recent low of approximately $0.021 to a peak of $0.42. While it has recently stabilized at around the $0.34 mark, several noteworthy announcements have emerged, capturing the attention of online investors. Nevertheless, it remains somewhat undiscovered in the broader market landscape. With the potential for a NASDAQ up listing, can this relatively obscure OTCPNK company break into the major leagues? To gain a better understanding of their prospects, let’s delve deeper into what BLFR is all about.

Background:

BLFR seemed to function more or less as a shell company until a recent shift in its operations. Despite a flurry of press releases, BLFR has not yet developed a website with an IR section to review resources. The company is clearly in very early stages, yet it’s already surged 1900%. That alone renders this speculative investment particularly intriguing, considering there’s many more high-value milestones ahead.

In the realm of OTC-traded companies, no website isn’t entirely unusual. It’s usually possible to uncover a wealth of information by sifting through press releases and SEC filings.

After some digging on our end, it appears their focus is in the energy sector, where they’ve now just acquired 90% of a cash flow positive family-owned oil & gas company in the state of Texas. Let’s delve  into the transaction to better understand the company and what lays ahead. 

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The Transaction:

In an all-stock transaction, Screaming Eagle was merged into BLFR, and in exchange, the owners received 45,000,000 shares of Preferred Stock Series A and 810,000 shares of Preferred Stock Series B. Matthew Goldston, the current CFO of Screaming Eagle, has taken on the role of CFO at BLFR, while Nickolas S. Tabraue continues as a Director of the Board, Interim CEO, CCO, and CIR. Additionally, Kirk Yariger has been appointed as the Chairman of the Board, and Jonas Crafts joins as a Director of the Board at BLFR.

Screaming Eagle’s Short-Term Plan:

• Starting in Q4 2023, Screaming Eagle will launch a three-well horizontal side track drilling program on the Bedias Creek asset and an eleven-well clean-out program on the Gin Creek Asset in collaboration with 50% operating partner Exponent.
• Screaming Eagle has identified over 200 drill sites on this property and has identified more than 5 stacked pay zones.
• Current wells were drilled on 700 acres spacing with only 40 acres being depleted in each well.
• The plan involves drilling horizontal slim hole sidetracks in existing vertical well bores with flat decline curves in producing zones.
• The expected initial production of the first 6 wells is 800-1,200 bbls/day.
• Screaming Eagle anticipates acquiring an additional 1,800 bbls/day in Q4 2023 through the acquisition of another blue-chip producing asset in Texas with shale and Austin Chalk producing formations.

BLFR’s Short-Term Plan:

• BLFR plans to engage a firm to assist in working towards uplisting to the Nasdaq.
• They will engage a PCAOB auditor to commence a company audit.
• BLFR intends to cancel 18 million shares of the Company’s Outstanding Common Stock.
• The company plans to change its name and stock symbol to better align with its new direction.
• BLFR aims to create an informative website for investors.
• After completing the stock symbol and name change, they will engage a branding and marketing firm for their new direction.

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Significant Twitter Updates: 

BLFR Reserve Study:

A glance at BLFR’s Twitter feed displays their reserve study report where assets are currently valued at USD $96,556,640. Their current market capitalization stands at approximately $10M which seems strikingly low considering the well report. But brace yourself for the next piece of information they shared – it suggests the potential for a staggering $142,341,150 in future net income too.

Shareholder Friendly: 

If we look further into their AS (Authorized Shares) and OS (Outstanding Shares) it’s fairly high with 2B AS. It’s worth noting that BLFR just recently planned on reductions given the company’s latest comments on Twitter, “there is no need to have more than 250,000,000 shares authorized to manifest our vision while maintaining share integrity and increasing value.” 

Reducing the authorized share count is a proactive step by management, significantly diminishing the potential for future dilution, which undoubtedly benefits shareholders.

NASDAQ Minimum Bid: 

The NASDAQ requires a minimum bid of $5.00 for any company going through the uplist process. As you know, BLFR is currently working with Eventus Advisory Group to uplist to the NASDAQ. 

What’s very interesting is a tweet the company put out just recently, “$BLFR’s management is confident that there will not be a need for a reverse split to meet NASDAQ’s $5.00 minimum bid requirement.” 

For those that aren’t familiar a reverse split is a corporate action where a company reduces the total number of its outstanding shares by consolidating them into a smaller number of shares. In essence, it’s the opposite of a regular stock split. 

This would naturally result in each individual share having a higher numerical value. However, it’s crucial to keep in mind that with fewer shares outstanding, the increased per-share value doesn’t translate into an overall increase in the value of your investment, it’d still be worth the exact same amount. 

The essence of this tweet is that the company has strong confidence in its intrinsic value, and upcoming catalysts could potentially propel the company to trade at a significantly higher valuation. The current stock price is $0.33 at time of writing, achieving $5.00 per share would represent a remarkable gain of over 1400%, making this a bold and ambitious assertion by the management.

Conclusion: 

Considering the early stage of this investment and the rapidly evolving landscape, we anticipate numerous developments unfolding shortly. We’re committed to providing regular updates as the company progresses with its vision.

It’s clear there are some fundamental tasks on the agenda, like setting up a website and undergoing a name change, but we can’t help but be optimistic about the array of promising opportunities that seem to be just around the corner, potentially yielding massive returns for investors.

We will update you on BLFR when more details emerge, subscribe to Microcapdaily to follow along!

Disclosure: We have not been compensated for this article/video. MicroCap Daily is not an investment advisor; this article/video does not provide investment advice. Always do your research, make your own investment decisions, or consult with your nearest financial advisor. This article/video is not a solicitation or recommendation to buy, sell, or hold securities. This article/video is our opinion, is meant for informational and educational purposes only, and does not provide investment advice. Past performance is not indicative of future performance.

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Nouveau Monde Graphite (NYSE: NMG) has exhibited an impressive surge of 36% in today’s intraday trading, a remarkable development that occurred without any accompanying SEC filings or press releases to inform the market of their progress. Yet, upon conducting more in-depth analysis, we have uncovered the driving force behind this remarkable uptick, and to put it succinctly, it’s an extraordinarily thrilling macroeconomic factor that is currently bolstering several graphite-related stocks on this auspicious day of October 20th, 2023. Stocks like Northern Graphite (OTC: NGPHF), Westwater Resources (NYSE: WWR), and South Star Battery Metals (OTC: STSBF) have all seen substantial gains.

About Nouveau Monde Graphite:

Nouveau Monde is gearing up to become North America’s largest vertically integrated producer of natural graphite, providing eco-friendly active anode material for battery and electric vehicle manufacturers. They have a trio of noteworthy projects in the works.

First, there’s the Uatnan mining project, where they’re setting up a mine and concentrator to churn out a substantial 500 ktpa of flake concentrate. What’s unique here is their smart on-site extraction and concentration strategy, which maximizes efficiency, cuts down on transportation, and reduces their environmental footprint. Even more impressive, this endeavor is built to last with a projected 24-year mine life, aiming for the title of the world’s largest natural graphite producer.

Then comes the Matawinie mine, where they plan to produce a notable 103 ktpa of high-purity flake concentrate. What sets this project apart is their cutting-edge approach: it’s all about being the world’s first all-electric open-pit mine, running on sustainable hydropower for carbon-neutral operations. They’re serious about being environmentally responsible, with a substantial 25-year mine life. And they’re ready to scale up to meet future demands, too.

Lastly, there’s the Bécancour Battery Material Plant. This place is all about producing active anode material and other specialized products from the Matawinie graphite concentrate. They’re flexible and forward-thinking with a modular design that makes expansion easy as the market grows. This commitment to growth aligns perfectly with the booming demand for battery materials, showing they’re in it for the long haul, driving innovation and sustainability in the industry.

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What Happened:

China is further tightening its grip on global manufacturing by imposing export restrictions on graphite, a crucial component in electric vehicle (EV) batteries, following previous curbs on exports of metals used in chip production. This move by Beijing coincides with recent restrictions unveiled by Washington on exports of AI chips to China, marking a continuing exchange of measures between the two superpowers.

In an announcement, China disclosed that starting December 1, special export permits will be required for three specific grades of graphite, as per the directives from the Ministry of Commerce and the General Administration of Customs. Notably, temporary controls have been lifted on five less sensitive graphite categories, which are used in various industries like steel, metallurgy, and chemicals. The stated objective of these new restrictions is to bolster the security and stability of the global supply chain, as well as safeguard national security and interests, with China emphasizing that it does not target any particular country. Key importers of graphite from China include the United States, South Korea, Japan, and India.

Zooming out, the United States has been pursuing measures to limit China’s access to advanced technologies due to national security concerns. The Biden administration, for instance, introduced regulations in September to oversee U.S. investments in China concerning semiconductors, microelectronics, quantum information technologies, and AI. In response, Beijing is utilizing its dominance in key materials as a countermeasure. It’s worth noting that China is not only the world’s top graphite producer and exporter but also refines over 90% of the world’s graphite into anode material for EV batteries, a critical component in electric vehicles.

Analysts like Ivan Lam from Counterpoint Research don’t anticipate an immediate, major disruption due to the partial restrictions on graphite exports. However, they foresee potential price increases driven by supply and demand imbalances, including the decline in graphite supply from Russia, which used to be a major supplier. Notably, experts like Christopher Richter from CLSA believe that a complete cutoff from graphite would be a “bold” move with far-reaching consequences, potentially disrupting the EV industry and escalating global tensions among China, the United States, and Europe.

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Conclusion:

In the broader context of a shifting economic landscape, it’s prudent to focus on companies that can seize the opportunities arising from these changes. Many companies have diverse and high-quality projects that are poised to thrive in this evolving landscape.

Among these, NMG stands out as a particularly promising candidate, offering a comprehensive graphite production process that spans from mining the raw graphite to delivering the active anode material for lithium-ion batteries.

More importantly, NMG shows unwavering commitment to a carbon-neutral approach that’s safe on the environment and sustainable for the well-being of local communities.

We will update you on NMG when more details emerge, subscribe to Microcapdaily to follow along!

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