Lumenpulse Group

Lumenpulse designs and manufactures LED lighting solutions for commercial, institutional, and urban applications.  Their stock has been a poor performer since their IPO in 2014 partly due to a very high valuation and results that didn’t meet high expectations and the stock recently sold off as they lowered their FY17 (ending April 2017) guidance due to seeing some (hopefully) short-term delays in projects.  Revenue growth has still been strong and the most recent 2 quarters delivered adjusted EPS of .26 and if the company can consistently deliver this level of profitability coupled with growth, it’s valued at approximately 22X its earnings power which seems attractive relative to its longer term earnings growth.

Sold on April 27th, 2017 as the company announced it is being taken private by its founder and CEO for $21.25.  I sold at $21.12 for a total gain of 86%, unfortunately it was only a 0.65% weight as I was waiting for the next earnings release to see if the business had a step back or remained stable.