Dutton Associates Announces Investment Opinion: Lime Energy Maintained At Strong Speculative Buy Rating By Dutton Associates
Dutton Associates updates its coverage of Lime Energy (Nasdaq:LIME), maintaining its rating of Strong Speculative Buy and its target price of $17.50. The 15-page report by Dutton senior analyst Richard West, CFA is available at www.jmdutton.com as well as from First Call, Bloomberg, Zacks, Reuters, Knobias, and other leading financial portals.
In previous Research Reports, we emphasized the major changes that Lime Energy has undertaken: acquisitions, financial restructuring, buildup in the sales and marketing staff, the name change, change in trading venue, and, most of all, the change in its basic business strategy. We see Lime Energy on the cusp of reaping the rewards from these transformations. A “new” company, serving the energy saving market, emerged in June 2006. Since that time, Lime Energy has evolved into a world-class marketing and sales organization, offering unique services and proprietary technologies to reduce energy consumption. Lime Energy is now an established company operating in a major growing market for energy saving products and technologies for lighting and heating, ventilation, and air conditioning (HVAC) systems. After almost two years, Lime Energy is hitting stride in creating revenue growth with increasing operating margins. The buildup of its sales and marketing staff is a major factor in Lime Energy’s increasing success. Lime Energy’s sales and marketing staff has grown from three salesmen in FY 2005 to a level topping 22 salesmen. We believe that Lime Energy’s common stock has not yet reflected its full potential revenue growth and the strong possibility of achieving profitability in FY 2009. In addition, investors should consider the recurring nature of Lime Energy’s revenue growth and the expectations of further recurring revenue growth into 2009 and beyond.
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Dutton Associates is one of the largest independent investment research firms in the U.S. Its 30 senior analysts are primarily CFAs(R) and have expertise in many industries. Dutton Associates provides continuing analyst coverage of over 140 enrolled companies, and its research, estimates, and ratings are carried in all the major databases serving institutions and online investors.
The cost of enrollment in our one-year continuing research program is US $35,000 prepaid for 4 Research Reports, typically published quarterly, and requisite Research Notes. We received $101,500 from the Company for 14 quarterly Research Reports with coverage commencing on 9/10/2003. The Firm does not accept any equity compensation. Our principals and analysts are prohibited from owning or trading in securities of covered companies. The views expressed in this research report accurately reflect the analyst’s personal views about the subject securities or issuer. Neither the analyst’s compensation nor the compensation received by us is in any way related to the specific ratings or views contained in this research report or note. Please read full disclosures and analyst background at www.jmdutton.com before investing.