Never let it be said that small cap stock Lighting Science Group (LSCG) wasn’t volatile, because it clearly is. However, LSCG’s chart is starting to look bullishly volatile a lot more often than not. Could the company’s long-awaited revenue growth finally be reflected on the chart? A few more resistance levels remain, but somebody certainly likes this small company at its current price.

In case you were wondering why all the recent hubbub, it can be summarized in two words…sales growth. In 2004, the company’s revenues were nil. In 2005, $73K. In 2006, $436K. So far in 2007 (three quarters worth), they’ve pulled in $846K. See any trend in there?

What’s been interesting is how the stock hasn’t seemed to budge since late 2005. As of 12/31/05, LSCG was trading at $10.60; now it’s at $9.96. Yet, sales are almost up ten-fold.

The issue here may be the valuation relative to sales. Even after getting crushed in 2005, the current market cap is still around $57.7 million…5.8 million shares at $9.96 each. Based on current sales numbers, that’s a tough price to justify.

There’s the rub though - are the current numbers the ones to use? The company is ramping up sales by triple-digit percentages. How, and why? Regardless, if they can do more than a million bucks in business in 2007 after doing none in 2004, what might 2008 and 2009 look like?

In all honesty, we don’t know what the future really holds. Lighting Science is an ‘energy efficient’ lighting company. It’s a growing field, and maybe there are millions of dollars up for grabs there. Someone seems to think so anyway - the stock is starting to make higher highs and higher lows (on bullish volume) for the first time in a long time.

So, fundamentally, the company still has a lot to prove, but may well do it. Technically, the chart may precede the company’s growth. There are resistance levels peppered all throughout the recent high of $10.00 and the 2007 peak of $12.40…the $10.80 area being a big one. This one’s going on our radar.

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