As the rain continues, I get more confident that water won't be our challenge this year. Staying dry on the other hand might be a problem.
I want to address two things today. First is a bit of an update on Enphase. They have done some things over the past month to attempt to shore up their financial position. Before the year end, they announced an At-The-Market proposal, to allow the company to sell up to $17M worth of stock. This was not received positively by the market. However, last week the company announced another cash infusion from a couple of well-known Silicon Valley figures. This is TJ Rodgers (formerly of Cypress Semiconductor) and an executive at Kleiner-Perkins (well known VC firm). Since then, the stock is up 89%.
The investment was really good news for the company, but I think investors have gotten a bit ahead of themselves. The pair put in a total of $10M - $5M each. They paid a little less than $1/share for their shares. This means by doing nothing, they have gotten a fantastic return on their investment. Do I think they are going to dump their shares? No. But realize that this money is both big and not big for both of them. Even the very wealthy think hard about multi-million dollar investments. But in the grand scheme of their net worth, it is a small number. We are talking about people who have Billionaire attached to them. TJ also will take up a BoD slot and he has stepped down as CEO of Cypress, so this makes sense. But to be clear, this will not likely have an impact on the day to day operation of the company.
I think that the $10M is going to be nice to have as you should expect another quarter of losses. But this does not change the direction of the company on its own. Pay attention to the next Quarterly call, which I will review here.
Finally, I want to talk about LinkedIn. I joined that network years ago when it got started. I have to say I am highly disappointed with many of the things that I see posted these days. I see Vanity Shots and "Fun" posts for a site that was dedicated to professional networking. I used to auto-accept incoming connection requests. I may have to change that policy soon. As a consultant, I do encourage a wide set of connections to meet different people. What I have seen a lot of lately is people connecting to me to sell their services to me. That is okay. What annoys me is those people that do so without doing any research on what I do, what I might need and how their service fits with me. So hey if you are using LinkedIn Marketing through something like Sales Navigator that's great. I don't think this overcomes your responsibility to do your diligence on me as a company before you send me the "hire me for what I do" message.
Have a great day!
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