LED: Looking alot Like Lighting’s Future

Our interest in small cap lighting companies was piqued this week with the announcement April

Photo courtesy of trinamao.en.busytrade.com

Photo courtesy of trinamao.en.busytrade.com

25 that New York-based ForceField Energy (OTCQQB: FNRG) had signed a letter of intent to acquire a 60 percent interest in 1-800 NY Bulbs.

The combination seems to make sense. During its 25 years of existence, Bulbs has more than 8,000 commercial clients, is an authorized dealer and distributor of GE Lighting Products and has projected about $5 million in revenue in 2013, according to the press release announcing the letter of intent. ForceField is focused on renewable energy, energy efficiency and LED (Light Emitting Diode) products.

LED lights are the latest in modern technology and energy efficiency, but have been slow to become the standard in households because of their price, according to Time magazine (http://business.time.com/2013/04/25/light-switch-why-youll-start-using-led-bulbs-this-year/). But the Time report suggests LED prices are coming down. Also, the Energy Independence and Security Act, passed in 2007, requires lightbulbs to become more energy efficient  and has led to the phasing out of standard 100-watt and 75-watt incandescent bulbs, with the 60-watt and 40-watt bulbs to follow.

So the day of the LED light could be near, as could be an intriguing jolt of energy to small cap lighting companies.

FNRG (http://www.forcefieldenergy.com) is a lightly-traded, $87 million market cap, pink sheet company with a 52-week trading range of $2.20-$5.64. It is also involved in transforming waste heat from manufacturing and other sources into electricity. It owns 51 percent of TransPacific Energy Inc. FNRG closed April 26 at $5.35, no change for the day.

Charlotte, NC-based Revolution Lighting Technologies (Nasdaq: RVLT, (http://www.nexxuslighting.com/) designs, manufactures and sells commercial grade LED replacement light bulbs and LED-based signage under the Array Lighting and Lumificient brands (Lumificient Corporation is a subsidiary). It was formerly called Nexxus Lighting and operates mainly in the global commercial, hospitality, institutional, retail and sign markets. RVLT closed April 29 at a 52-week high of $4.01, up 45 cents for the day with a market cap of $140 million. Its 52-week trading range is $0.11-$4.01.

Cincinnati-based LSI Industries (Nasdaq: LYTS, http://www.lsi-industries.com/) is a different take on an LED lighting company. LYTS creates LED video screens and LED specialty lighting for sports stadiums and arenas, digital billboards and entertainment companies. Its 52-week trading range is $5.81-$7.77. It closed April 29 at $7.09, up 18 cents for the day, with a market cap of $170 million.

Solon, OH-based Energy Focus Inc (OTC Pink: EFOI, http://www.energyfocusinc.com/) makes LED lighting products as well as products based fiber optic and other energy-efficient technologies. EFOI focuses on the government and public sector markets, as well as the general commercial and pool markets. Its 52-week trading range is $0.16-$0.40. It closed April 29 at $0.22, up 3 cents for the day, with a market cap of $8.4 million.

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