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    Lime Energy's Strategy Is Validated By Award From Central Hudson

    Tue, 05/15/2012 - 04:58 EDT - Seeking Alpha
    • CHG
    • LIME
    • Tom Konrad

    tom konradBy Tom Konrad (AltEnergyStocks): Lime Energy (NASD:LIME) has been a star in the very competitive energy services space recently because of its ability to maintain margins in what has been a very competitive environment. While competing small efficiency companies have been closing up shop in the Northeast, Lime has been growing revenues at 30% a year, while maintaining a gross margin of around 20%.Recently, Lime sold off due to an earnings miss arising from a big write-off and less than expected revenues in the company's Commercial and Industrial (C&I) division. This was the buying opportunity I was waiting for since I first wrote about the Lime last October.
    Central Hudson Award
    The stock has not yet recovered, but the recent announcement of the award of Central Hudson's (NYSE:CHG) direct install program may change that.Lime anticipates that the contract will be worth up to $25 million over a four year period, which shouldComplete Story »

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    • Lime Energy Strategy Validated by Award from Central Hudson

      The recent restructuring was intended to better align Lime's C&I business with these utility programs, and to take advantage of this selling opportunity. award of Central Hudson's direct install program may change that. That's why this is big news. The award of additional utility programs is key to Lime's strategy. Today's announcement tells us that strategy is working.

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    • UPDATED: Look for Buying Opportunity in Lime Energy Following Earnings Miss, Market Inattention

      I see Lime Energy (NASD:LIME) as a good turn around play. Most investors have dismissed Lime because it operates in a competitive, low margin business, and so are unaware of the utility focused strategy which will both provide Lime with barriers to competition and longer term recurring revenues. Investors who buy now, especially in the wake of the first quarter's earnings disappointment, should see above market returns over the next couple years as the benefits of the new strategy flow through to margins and earnings.

    • Look for Buying Opportunity in Lime Energy Following Earnings Miss, Market Inattention

      I see Lime Energy (NASD:LIME) as a good turn around play. Most investors have dismissed Lime because it operates in a competitive, low margin business, and so are unaware of the utility focused strategy which will both provide Lime with barriers to competition and longer term recurring revenues. Investors who buy now, especially in the wake of the first quarter's earnings disappointment, should see above market returns over the next couple years as the benefits of the new strategy flow through to margins and earnings.

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