WNDW – Why I am short (SolarWindow Technologies)

Who are SolarWindow Technologies Inc.?

If you are around long enough, you would know that SolarWindow used to be called New Energy Technologies and traded with the ticker NENE.

The company has absolutely ZERO revenues, employs only 3 people with 26.3M shares outstanding (10.3M shares currently floating) with zero institutional holdings and 44% insider holdings.

With the current price ($3.24), the company has over $85M market cap! You haven’t read it wrong…

Checking their filings, the company is currently in a complete financial mess. As Penny Stock Realist, a respected Seeking Alpha contributor, recently pointed out that, their latest 10-Q filing includes the following admission from the company:

“The Company does not have any commercialized products and has not generated any revenue since inception. The Company has an accumulated deficit of $27.290,828 as of May 31, 2015 and does not have positive cash flow from operating activities.

As of May 31, 2015 the Company had cash of $69.169. Subsequent to its quarter end, the Company received $765,156 from the exercise of Series H Warrants. Based upon its current and near term anticipated level of operations and expenditures, the Company believes that cash on hand should be sufficient to enable it to continue operations through October, 2015.”

Why WNDW price is going up lately?

WNDW is currently involved in a Paid Promotion. This simply means that company is paying some stock media company to produce exciting (and not necessarily correct) promotion material online (and in some cases offline) to get unsuspected investors to invest in their ‘very innovative’ electricity-generating SolarWindow coatings product which will produce ‘Endless Energy’. You don’t need to be Einstein to laugh at this statement.

They also created this webcast ‘announcement day’, which will take place on  20th August. This is a quite well known trick to get potential investors excited as if there is great, big news are on the way…

Companies pay for paid promotions when they are desperate and it hardly ever ends well for the unsuspected investors as it is normally a trick for the insiders to sell their stock to these investors at ultra inflated prices.

The company has over 8 million shares of common stock issuable from warrants and with absolutely no revenue the company will want to raise money and will use these warrants very soon. What do you think will happen to the stock price then?

Solar Sector and Real Innovations

As well as stock trading, I also own and operate a very successful Venture Capital organization in Europe which helped hundreds of Small to Medium Enterprises (SMEs) to raise seed or commercialization finance. Solar Sector happens to be one of the areas that we had helped many companies in this domain and have quite a good overview on the latest innovations and trends in the sector.

The technology that WNDW claiming to be working on is not in any way new or innovative. Spray-on-Solar technology as a coating is almost 20 years old technology. Although, It is true that more applications areas has been created for the technology in the last 5 years or so, the technology itself is being protected with concrete Intellectual Properties such as patents from very big companies in the sector.

SolarWindow has filed a patent in 2012 (which is still pending and can be seen here: https://www.google.co.uk/patents/US20140198371?dq=%22solarwindow%22&hl=en&sa=X&ved=0CCAQ6AEwAGoVChMIoL-1w42pxwIVi6HbCh12aw4l). The patent is very general in terms of its explanation of the invention and pretty much similar to some other patents out there. It is very unlikely that it will be ever granted (patents pending means absolutely nothing, it means that it has been filed and awaiting decision from the patent office but companies love to mention those as if they have some great technology).

Photovoltaic (PV) systems can be classified as ground-based (stand-alone systems e.g. solar farms), building-applied (BAPV) (e.g. roof mounted panels), and building-integrated (BIPV) (where PV is integrated with building function e.g roof tiles, skylights). The majority of solar PV systems in use today employ solid, flat-panel PV modules, with the PV material encapsulated in glass.

For fabric-integrated and glass-integrated  PV, lightweight and flexible thin-film PV modules are required. The alternative technologies suited to flexible PV manufacture include amorphous Si (a-Si), Copper Indium Gallium diSelenide (CIGS), Dye-Sensitized Solar Cell (DSSC) and Organic Photovoltaics (OPV).

Current State of the art and the companies in the sector (with concrete Intellectual Poperties can be seen as below):

FLEXIBLE/Integrated PV

aSi

CIGS/CIS

DSSC

OPV

Major Manufacturers

Unisolar

Ascent Solar, Nanosolar,

Solopower

Miasole

Dyesol

Sony

G24i

Konarka

Solarmer (R&D)

European manufacturers

Flexcell

Flisom AG

PVflex Solar

CIS Solartechnik

Odersun

Solarion

G24i

Dyesol UK

3G Solar

SolarPrint

Konarka

Heliatek (R&D)

Cell Efficiency [%]

5-8% product

7-11% product

18% R&D

<10% product

<5% product

8% R&D

Lifetime [yrs]

25 years expected

10+ years expected

Poor outdoor (UV) lifetime

Typ. 100 hrs.

Not fully proven

80% degradtion over 3 year claimed

Maturity

Mature

Emerging products

Prototypes

Emerging products

Please note that, the efficiency of flexible thin-film or printable PV technologies (that WNDW are claiming to use)  is lower than the solid panels (crystalline silicon cell solar modules have efficiencies up to 24%, and are typically <18%). This means that efficiencies are very low, return on investment on them are typically many years for big applications. It is very unlikley that any of the construction companies will be interested in purchasing WNDW products and use them in their buildings or skyscrapers (as claimed by he company).

Looking at the information above, knowing about this company history (when they were NENE), knowing about the technology domain, WNDW is a STRONG SELL\SHORT for me. I currently hold a large short position and adding more before the big crash.

I hope this helps.

MT

 

 

 

 

2 thoughts on “WNDW – Why I am short (SolarWindow Technologies)

  1. Thanks for sharing wisdom on your awesome blog!
    Im not able to find you on SeekingAlpha; do you use another account name?

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