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Wednesday, August 16, 2017

Renewable Energy and Power, Inc. (RBNW) Forward-Looking Analysis

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Business Information:

Renewable Energy and Power, Inc.
Ticker: RBNW
PPS: 0.0705 a/o 8/16/2017
Up 0.0526 or (+293.85%)

Market Value: $6,117,275 a/o August 15, 2017
Authorized Shares: 750,000,000 a/o April 26, 2017
Outstanding Shares: 86,769,860 a/o August 08, 2017

#111 3395 Cheyenne Ave
N. Las Vegas, NV 89032
Phone Number: 1(702)685-9524

Fundamental Analysis:

According to Renewable Energy and Powers’ website, RBNW is dedicated to a cleaner, greener planet. They provide the best alternatives to traditional and fossil fuel power through our commitment to solar energy and LED lighting. RBNW strives to reduce their collective carbon footprint, so our environment is safe, renewable, and cost efficient. They are in the business of generating and cultivating emerging technology in renewable energy, producing effective and reliable energy, and power solutions to consumers and corporations worldwide.

RBNW has LEDLItes USA, Sol-HY, and Power Stac as their main product lines. LEDLites USA are green energy solutions that provide their customers greater product functionality and superior cost-benefits for their LED Lighting. Their second product line, Sol-HY, uses Tandem Solar Cells that provide twice the solar energy conversion to electricity as compared to standard silicon solar cells. These patented processes increase solar cell output, interconnect reliability, provide their electrical efficiency and significant production cost savings while conserving expensive semiconductor materials. Finally, Power Stac offers Green Energy storage by employing proprietary new technologies in Re-Dox Battery Energy Storage Systems.

Renewable Energy and Powers’ Management:

Mr. Donald M. Macintyre, Chairman, Chief Executive Officer (CEO), and President
Bruce Parsons, Chief Financial Officer (CFO), Treasurer, and Director
Mr. Bruce Macintyre, Vice President of Marketing, Secretary, and Director
Mr. Perry Barker, Vice President of Sales and Director


Market Cap (Intraday): 2.12M
Trailing P/E: -0.02
Price/Sales: 2.92
52-Week Change: -95.53%
52-Week High: 0.80
52-Week Low: 0.00009
50-Day Moving Average: 0.1350
200-Day Moving Average: 0.3033
Average Volume (3 Month): 655.27k
Average Volume (10 Day): 3.83m

Quarterly Report Published on May 25, 2017:

First, let’s look at the condensed balance sheet for Renewable Energy and Power, Inc. We see that the company has $1,302,176 in total assets, $1,831,230 in total liabilities, ($529,054) in total shareholders’ deficit, and $1,302,176 in total liabilities and shareholders’ deficit.

Next, let’s look at the condensed statements of operations (income statement). Looking solely at the numbers for the three month period ending on March 31, 2017, we see that the company has $203,052 in revenue. The cost of revenue is at $176,405, thus making the gross profit $26,647. Now we factor in the operating expenses with total expenses being $98,439, leaving RBNW with an operating loss of ($71,792). RBNW also had ($6,364,895) in other expenses, leaving the company with a net loss of ($6,436,687).

P.S. Note that this is the Quarterly Report for March. We could not find the Quarterly Report for the quarter ending in June as it has not likely come out.

Market Analysis:

From the International Energy Agency, they expect that global power generation from renewable energy sources will rise to over 26% of the market by 2020 from 22% in 2013. They also report that renewable energy costs have declined in many parts of the world due to sustained technology progress, improved financing conditions, and expansion of deployment to newer markets with better resources. Due to these circumstances, Renewable Energy and Power, Inc. is in a good position to pull through with their cheap and power efficient line of products.


On August 1, 2017, Marketwired reported that Renewable Energy and Power, Inc. is in the process of improving the functionality and designing customized housing for a variety of LED lights to be submitted for possible use in the new Raiders football stadium to be constructed in downtown Las Vegas.
On July 6, 2017, Marketwired reported that RBNW announced that after completing their evaluation, a large San Francisco Bay Area electronic assembly corporation has approved the installation of 1,275 LED lights for their entire main campus.

On June 14, 2017, Marketwired reported that RBNW announced it has contracted with a large contract electronic assembly corporation in the San Francisco Bay area to retrofit with LED lighting both the indoor and outdoor facilities of the corporation’s main campus.

On June 7, 2017, Marketwired reported that RBNW announced that it has contracted with an LED lighting Installation Company to supply the latest LED lighting for the first facility of a large dining franchise, located in an extended shopping complex that is also considering switching to LED lighting.

Technical Analysis:

In a timescale of 3 years, RBNW has spent most of its time between the 0.005 and 0.0001 region with some significant spikes along the way. The stock exploded on 2/6/17 from a pps (price per share) of ~0.003 to 0.4502 on 4/3/17. The stock stayed around this level until it fell from 0.4587 on 5/15/17, to 0.2943 on 5/29/17. Again, it stayed near this price until it fell again from 0.3153 on 7/3/17 to a bottom of 0.0119 on 7/24/17. From this price, the stock gradually is climbing to this day to a price of 0.0705.

Looking at resistance lines (a price where the stock has trouble pushing above/below), we see 0.3111 being the next point of resistance. From here, 0.4629 will likely be the next point of resistance. On the downside,  the lower resistance line is at 0.0076. The current Bollinger Bands show a range between 0.0001 and 0.6246. Current RSI (or Relative Strength Index) is at 38.0126 or oversold. Also, I see that selling volume is overtaking buying volume currently.

Social Analysis:

For social analysis, we look at what investors are posting about the stock on sites like IHUB and Yahoo Money. On 8/15/2017, RBNW was rated on the breakout board as it was receiving an enormous amount of exposure from the massive price gain today. Many different people are discussing the stock on the board. Twenty Nine people have RBNW added to their “My Stocks” tab. Currently, the community sentiment is bullish. We would rate this all as a plus for the stock!

Forward-Looking Analysis:

There’s no doubt that RBNW had a great day today with its +293.85% increase in pps. That leaves the question of how should investors play the stock now? It is evident from the news articles that the company is bringing in much new business that will help with the ~$6,000,000 loss from the last quarter. If RBNW was able to turn this positive, the company could be on its way to breaking $1 as the o/s (outstanding shares) is pretty light currently with 86,769,860 shares. If this turns out not to be the case, then the company will likely pay that amount down thus making this a great long term opportunity. From a short term strategy, it is tough to say if I would be a good idea to buy in. On the one hand, you have the “What goes up must come down mindset” kicking in saying that this sharp spike will likely correct. On the contrary, it is possible that this could continue to run thus making this an excellent opportunity to “Ride the Wave.” What do you think? I would love to hear your opinions in the comments section below!


I wrote this article myself, and it expresses my own opinion. I have no business relationship with any company whose stock is mentioned in this article. I also will not be holding shares in the company in the next two weeks of this articles posting.

I have no positions in any stocks mentioned and have no plans to initiate any positions within the next 72 hours.


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Fundamental Analysis And How To Make It Work For You (Part 2)

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Richard L. Musgrave

The Importance of News
Another part of fundamental analysis is looking through both the companies news releases as well as watching regional, national, or global news sources. For example, say that there is a new law that’s just passed that will affect the company negatively. As investors, we don’t take the negative news lightly at all. In fact, negative news will likely cause a rush towards the exit door with tons of selling. If you were on your game and caught the poor news being released, you have a much better chance of saving your money. On the contrary, if you missed the news, you might be stuck inside of a sinking stock. You might not be able to find anyone to buy your shares so you can exit the stock. This could cycle to badly that you might lose most of your money. Keeping track of the news is a worthwhile and easy precaution that’ll help you protect your money in the long run.

How to use Fundamental Analysis Effectively

Now that you’ve learned how to conduct fundamental analysis on a company, it’s time that you find out how to integrate it into your trading strategy. When many people first start, they tend to ignore the financial statements released by these companies. I find the act of ignoring critical financial information to be a grave mistake.

For example, I had a friend that look purely at how the lines were trending and totally ignored fundamental analysis. He bought in with his buy-in capital and the next thing he knew, it dropped. There were two reasons to this. First off, the company was taking a huge loss and was getting crippled under all of its debt. Its response to this was to dilute their shares into the market. Needless to say, my friend provided an exit for these scrambling investors to bail the stock. The second reason (and the more compelling/sad reason) was that my friend was only looking at the daily stock charts and ignoring the monthly or three-month stock charts. If he had used these other time scales, he would’ve seen that the stock was in a sharp decline. With a lot of luck, I was able to help him pull out his money without a loss.

Seriously, fundamental analysis is completely full of very important information. By not looking into it, you put yourself at a huge disadvantage. Some people think of the stock market as gambling, and it only is if you don’t try to understand it. I’m trying to teach you how to use the available data in such a way to win more often than not.

Richard L. Musgrave
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Fundamental Analysis And How To Make It Work For You (Part 1)

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Fundamental Analysis

To have the best chance making money in the stock market, it’s only natural that you’d want to know all the details of the company before you actually buy into the stock. This is where fundamental analysis comes from. Fundamental Analysis is doing research into the company that you’re buying stock in. This means that you’ll go to either the NASDAQ or the OTCMarkets perspective websites and look through the company’s financial statements. As I talked about above, you’ll have to find the companies filings and look through their quarterly and annual reports.

Consolidated Balance Sheet

Looking through these filings, you’ll see a lot of financial data that you can use to your advantage. The first data table that you’ll see is the consolidated balance sheet. The first thing being discussed in this table is the companies assets. Assets include things like the companies cash on hand, any money that is currently owed to them (accounts receivable), the value of their current inventory, prepaid expenses, and much more. You can think of assets as the financial value of all the companies property.

Next, we have the companies liabilities. In my time learning accounting in college, I’ve come to think of liabilities as debt. In the Current Liabilities Column, we might find things like accounts payable (debt that needs to be paid), deferred rent payable, note payable, unearned revenue, derivative liability, and maybe a few others.

After this, we see the Commitments and Contingencies / Stockholder (Deficit) Equity Column. Here, we see the amount of restricted shares that have been sold by the company as well as the total stockholders’ (deficit) equity. Restricted shares are shares that are sold by the company but have special rules attached to them. For example, you might come across things like Series A Restricted Stock. Restricted stock tends to have an amount of time that the stock has to be held before the stock can be sold into the market. It’s also worth noting that the value of 1 restricted stock might be equal to many normal stocks. Let's say that you gained 50 shares of restricted stock. The restricted shares would likely have a time limit that you’d have to wait before you could sell them. Also, when you do actually sell them, 1 restricted share could be turned into 100 normal shares. Therefore, you’d have 5000 shares by the time you could sell them. There’s a lot of rules and many different types of restricted shares and is certainly an interesting read to further your understanding of investing.

Consolidated Statements of Operations

This table holds (in my opinion) the most important financial information about the company. My biggest question for the company is, “Is the company profitable?”. Naturally, many investors would feel more secure about buying shares from a company when the company is making money in the first place. There’s a quick discussion I want to have with you real quick before we want to read the following information from this table.

First off, accounts use () or parenthesis to dictate a negative number. For example, if the company took a loss in overall operations, the amount they lost would be in (). For example, (51,000) is a negative number.

Also, many people who are learning about accounting tend to misinterpret two very important terms, revenue and profit. The reason I bring this up is because I’ve know people who thought they knew the difference and ended up getting burned pretty bad for it. Revenue is the amount of money the company makes from its sales or services. This is where the company is actually getting paid for their goods and services. But what about the money you lost for creating, marketing, or doing the service. The cost of sales is how much it costs to get the goods sold in the first place.

-Cost of Sales
=Gross Profit

Gross Profit is the margin (or the difference) that the company actually made money on. The opposite of this is a Gross loss (or sometimes the gross deficit).
With this being said, we forget about a few other expenses that the company will need to cover. After all, running a business means paying for rent, employees, and new equipment. These are described in the administrative expenses column.
Moving downward, you’ll see the income (loss) from operations.  This is simply the amount of money left over after other business expenses have been taken out.  From here, we leave a space for any other sources of income as well as expenses that the company has recorded. Examples of this would be a change in fair value of derivative liability, gain(loss) on debt, interest income, and interest expenses. Once we’ve covered this, we’re left with a final number that will either be the company showing a profit or a loss.

*Sometimes numbers might be dictated by, x1000 meaning that you take the listed numbers and multiply them by 1000. It’s basic table reading, but it can be easily missed so be sure to keep an eye out.

-Cost of Sales
=Gross Profit
-Administrative Expenses
+Other Income (Expenses)
= Net Income (Loss)  <- Profit or Deficit

Consolidated Statement of Stockholders’ (Deficit) Equity

In this table, we see the number of shares outstanding in the company, the number of restricted shares sold by the company, the price with which those shares were sold, and the Stockholders (Deficit) Equity. This is important to use because this will tell you about any dilution that might be occurring. Plus, you can use the total stockholders (Deficit) Equity column to see how the final balance in cash is spread between all of the companies shares. After all, owning a part of the company means that you own a part of the assets.

Consolidated Statements of Cash Flows

In this table, we see how the company has spent their cash on hand over the course of the quarter. The first thing worth noting is how the tables compare the cash on hand from this quarter to that of the year prior. As an investor, use this added information to see how the company has grown over time. Has the company had an increase in overall profits and has increased their cash on hand? Maybe the company continues to pile on more and more debt and prolonging their eventual bankruptcy.  Mainly, this table allows us to see how the company is tending to their financial obligations.

Notes to the Consolidated Financial Statements

Once you get to this part of the filing, you’re pretty much done with tables. The many pages that follow break down, talk about, and describe the tables that you saw above. Also,  you’ll see useful information such as a description of what the company does to make money (as talked about in the Organization & Nature of Operations paragraph), information about their fiscal year, and the companies forward-looking thoughts. I personally like looking at the companies forward-looking thoughts as it talks about whether the company has adequate money to continue business or whether there is a doubt that the company will be able to survive normal operations.  I advise that you read through most (if not all) of the information here to just to get a feel for how all of the data in the tables above are meant to be used. 

By: Richard L. Musgrave
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