Ardsley Partners Increases Holding in World Energy Solutions, Inc. (XWES)

Philip Hempleman’s Ardsley Partners in a filing, updated that it now owns 913,793 shares, representing 7.5% of the common stock of World Energy Solutions, Inc. (NASDAQ:XWES). At the same time, Ardsley Partners disclosed a letter sent to the chairman of the company’s board. The fund held 602,895 shares at the end of September 2013.

world energy

The fund believes that, World Energy Solutions, Inc. (NASDAQ:XWES), should regain focus on the energy procurement business, boost its sales and marketing efforts to large industrial and institutional users of power and gas.

World Energy Solutions, Inc. (NASDAQ:XWES)’s acquisition of 10% of Northeast Energy Solutions (“NES”) has brought in –2% operating margin on $6.9 million sales and still continues to lose cash, in its attempt to grow an energy efficiency business. In views of Ardsley Partners, World Energy Solutions should cut down its expenses on unprofitable energy efficiency business and should dispose the unviable projects.

Further the fund believes that by entering into a strategic partnerships with large private equity groups, industrial conglomerates, consulting firms with thousands of clients and group purchasing organizations, World Energy Solutions, Inc. (NASDAQ:XWES) can boost its top line by exploring new channels and also capitalize on trends in distributed generation.

“We are confident that under the direction of a refreshed Board, World Energy can become a market leader in an expanding, multi-billion dollar energy procurement market. We also believe, however, that the Board has an obligation to examine the premium that potential acquirers are willing to pay for World Energy today. Based upon the extraordinary shareholder value generated in several of the transactions we mentioned above, we believe it is incumbent upon the current Board to fully evaluate all strategic alternatives to maximize shareholder value at World Energy, including a sale,” the fund said in the letter.

Apart from Ardsley Partners, Chuck Royce’s Royce & Associates, also held 1.17 million shares of World Energy Solutions, Inc. (NASDAQ:XWES), at the end of September 2013. Citadel Investment Group, managed by Ken Griffin, initiated a position in the company’s stock in the third quarter of last year, and now holds 10,864 shares, representing $36,000.

Disclosure: None

Recommended Reading:

Cadian Capital Picks Up Stake in LogMeIn Inc (LOGM)

Hedge Fund News: Martin Whitman, Michael Platt & Lansdowne Partners

Seth Klarman’s Baupost Group Initiates Stake in Kindred Biosciences Inc (KIN); Trims Holding in Enzon Pharmaceuticals Inc (ENZN)

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

On the Move: The 10 Fastest Growing Businesses in 2015

Fast Money: The 10 Highest Paying Fast Food Restaurants

Mixing It Up: The 14 Best Music Mashups of 2014

Rito Pls Buff: The 10 Least Played Champions in LoL Season 4

10 Covers of Popular Songs that are Better than the Originals

Must See TV: The 9 Most Anticipated Shows of 2015

The 15 Biggest Box Office Bombs of All Time

10 Things The World Can’t Stand About Americans

Picture Perfect: The 6 Smartphones with the Best Cameras

The 10 Best Countries To Work In the World

A Profitable Day At The Track: 5 Tips For Betting On Horses

Tearing You Apart: 6 Bad Habits That Ruin Relationships

Learning on the Job: The 6 Biggest Mistakes Parents Make

Shopaholics Rejoice: The 12 Biggest Malls in the World

Fright Night: 10 Horror Movies Based on True Stories

Mach Mania: The 10 Fastest Jets in the World

Military Heavyweights: The 10 Countries with the Most Tanks

All In: The 7 Richest Poker Players in the World

Abracadabra: The 10 Best Magicians in the World

The 10 Richest Asian Countries in the World in 2014

Eyes in the Sky: 10 Things You Need to Know About Drones

Rising Stars: The 6 Best Silicon Valley Startups

Military Muscle: The 5 Most Advanced Armies in South America

All that Glitters: The 7 Most Luxurious Jewelry Brands in the World

5 Things You Didn’t Know About ISIS but Should

Empowering Your Money: The 5 Best Energy Stocks to Invest In

The 11 Best Android Apps You Can’t Get on iOS

The 10 Most Important International Conflicts in 2014

Mood Enhancers: The 20 Most Uplifting Songs of all Time

Lover Beware: The 8 Countries that Cheat the Most

Breath of Fresh Air: The 25 Countries with the Best Air Quality on the Planet

Singles Beware: The 8 Worst Mistakes Made on First Dates

Healthy and Happy: The 10 Countries with Lowest Healthcare Costs

The 6 Best Company Team Building Activities to Build Workplace Camaraderie

Ships Ahoy: The 10 Busiest Shipping Ports in the World

10 Productivity Tips to Save You Time and Help You Do More With Less

Grab a Bite: The Most Popular Fast Food Restaurants in America

Friday Night Thirst: The 10 Most Popular Cocktails in the World

The 6 Greatest Unsolved Mysteries We May Never Figure Out

7 Useless Products You Never Should’ve Bought

The 5 Reasons Why You’re Single and Miserable

The 7 Most Addictive Foods in the World We Can’t Stop Eating (Even Though We Should)

5 Amazing Places You Can Swim with Dolphins

The Top 7 Most Livable Countries In The World

The 10 Most Expensive Baseball Cards Ever Pulled From A Pack

The 5 Easiest Second Languages to Learn for English Speakers

Silver Spoon: The 6 Richest Families in the World

The 20 Countries with the Largest Prison Populations in the World

The Top 10 Richest Actors in the World

The 10 Best Airline Stocks to Invest In Before They Fly Too High

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!