INTRO Here's my semi-annual exercise to see if I remember why I own the stocks I own, and so I can check back and see if their stories have changed. I post in case it helps others too.

Real Goods Solar
RSOL (market cap $0.030B)
Real Goods Solar installs solar panels and power systems on businesses, municipal buildings, and houses in states that have favorable solar power subsidies. I recall them only being in California and Colorado, but their web site now lists nine other states, mostly in the northeast. Bad news (from my point of view) apparently they've eliminated their catalog that targeted DIY. Good news (from my point of view) but they have expanded their region. The industry and the need are growing, and the company has a headstart and momentum, all of which should work in their favor.

Financially they are attractive. Price/book and price/sales are less than one. It is common for construction services to trade at smaller multiples than a high tech firm, but less than one is buying a dollar for less than a dollar. Their revenues have grown more than 50% from 2009 to 2011. Their debt is higher than I like, but that is measured relative to a low market cap.

I'm surprised by how often I am finding this but, yet again, RSOL seems to be dramatically undervalued.

Their story is so simple and the disconnect between company value and stock price is so large that either I am missing something massive or this is a good opportunity. Maybe this is all a Solyndra headache.

I've described my history and theirs in more detail in a previous post on my blog. (http://trimbathcreative.wordpress.com/2012/03/17/really-good...)


DISCLOSURE LTBH since the mid-2008 IPO. I might buy more if I had sufficient discretionary funds. Unfortunately, I may have to sell if I can't find a job or sell my house.
(I've also collected links to the other discussion boards and my other stocks over on my blog trimbathcreative.wordpress.com)