Green Stocks Central Begins Coverage Of LED Lighting Play Nexxus Lighting (NEXS)

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08:37:08 pm on April 26, 2010

 Green Stocks Central also begins coverage of LED lighting play Nexxus Lighting (NEXS).

nexxus_led_lightingNexxus Lighting (NEXS): Nexxus designs and manufacturers LED and fiber optic lighting for landscaping, pool, architectural, signage and commercial lighting applications.  It’s a small, thinly traded company that has never posted a profit, but traders have been bidding up the stock in recent weeks on continued optimism for the LED industry.  Nexxus isn’t what you’d call a top tier LED company, but with LED lighting growth expected to boom over the next decade, it’s one you’ll want to keep an eye on.  The company only does around $12 million a year in revenue and has yet to turn a profit, but they are expected to be profitable in 2011. 

CEO Mike Bauer commented on the future of LED lighting: “We believe that if you look through current market conditions, demand for LED replacement lamps will grow significantly. We view the Department of Energy’s publication of EnergyStar guidelines in December, which become effective August 31, 2010, as a key component in organizing demand for LED light bulbs, even if it may temporarily slow market adoption in the interim. We expect it will increasingly be a guideline used by customers in their purchase decisions and by utilities for their incentives.”

Nexxus Lighting stock had a rough end to 2009, but began to stabilize this year.  It seemed to bottom out around mid February when the company released a national advertising campaign around its new Array LED replacement bulbs which targeted hotels, restaurants and retail stores, highlighting the energy savings potential.  The stock began to slowly move higher a few days after announcing that it had begun producing and shipping its new Array Quantum LED replacement bulbs on March 8th.  On April 1st the company reporting earnings which began a tremendous 3 week run in which the stock has run up 75% with increasing volume.

The stock has come too far, too fast in the last few weeks, but would offer a mighty compelling entry should it pull back to around what is now support of the 200 day moving average around $4.50/share.  Click Here For More Nexxus Lighting Analysis.

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