Unusual Call Speculation in Small Solar Company Sunworks
Sunworks (SUNW) a small cap with speculative call action on 6/17 as more than 20,000 calls traded, 8X daily average, with July $15 in focus as 14,000 traded $0.35 to $0.55. SUNW has a market cap of just $258M. SUNW has a nice pullback wedge forming from the January highs with the 55-day moving average, trend resistance and range resistance all lining up near $10.50 as a trigger level. SUNW provides photovoltaic based power systems for the agricultural, commercial, industrial, public works, and residential markets in California, Nevada, Massachusetts, Oregon, New Jersey and Hawaii. Approximately 74% of 2020 revenue was from sales to the ACI and public works markets, and approximately 26% was residential. SUNW sales for 2021 are seen at $125M, up 230% Y/Y while it is not yet profitable. SUNW did a $51.8M cash deal for Solcius in April expanding its presence. SUNW has 13% of its float short. At 1.5X EV/Sales it trades cheap versus the larger PV leader FSLR which trades 2.4X.