Dallas, Texas 02/03/2014 (FINANCIALSTRENDS) – After posting close to 9.42 percent gains over the past one week, Real Goods Solar, Inc.(NASDAQ:RSOL) ended 31st January in a bull run. It posted losses of close to 5.95 percent in market valuation and accounted for close to 3.2 million transactions during trading on the day. It was trading at 3.95 at day’s close and is currently 343 percent above its 52 week low price point of $0.89 per share.
The big gains last week were a spill over from week of January 15th, when Real Goods Solar, Inc. (NASDAQ:RSOL) announced that it had bought out a much smaller operator Mercury Solar Systems in mid January. The bought out firm had been in operation since 2006 and had under it belt the credit of installing and commissioning more than 2000 solar plants which in total would have accounted for close to 60 mega watts of power generation.
Explaining the rationale behind the leveraged buyout by issuing close to 8.3 million shares of Class A common , Real Goods Solar, Inc.(NASDAQ:RSOL) Chief Executive Officer and Director, Kamyar Mofid has been quoted to have said that, “The addition of Mercury significantly increases the overall depth and breadth of our capabilities. In August of last year, we acquired Syndicated Solar to strengthen our residential business and it produced a significant increase in our homeowner engagements. Following Mercury’s integration over the next few weeks, we expect to likewise accelerate our growth in the commercial sector.”
The $118 million market capped solar provider believes that due to its increased scale and size, post the integration of the bought out company, its offerings in the commercial and residential solar sectors is going to go up many fold, since they would be able to leverage their larger presence and expanded product portfolio to add more new customers.