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KULR Technology Stock Up 26% In August, Bullish Guidance From Q2 Helps Fuel Rally…Here’s Why ($KULR)

KULR Technology Stock Up 26% In August, Bullish Guidance From Q2 Helps Fuel Rally...Here's Why ($KULR)

KULR Technology (NYSE-Amer: KULR, $KULR) stock is trading higher by 26% in August, more than tripling the gains in the Russell 2000 index for the same period. And the better news is that the $KULR price trend appears decidedly bullish after Q2 commentary made a case for a potential surge in 2H/2022 revenues. (*price at press-time on 8/18/22 intraday $1.83)

In fact, investors may be right to interpret KULR's comments to mean that the company is better positioned now compared to any time in its history to capitalize on multiple market opportunities. That's great news for those who are long the stock. But it also presents an excellent opportunity to those considering, noting that a sharp bullish reversal since the May lows sets the stock up to do well on a technical basis. In other words, the chart indicates the rally is likely to continue. 

Deservedly so, and KULR is providing the reasons why. Foremost, management's bullish commentary last week indicated that considerable revenue-generating opportunities are in the crosshairs. The better news is that the company has broadened its market reach to include new market opportunities to further capitalize on opportunities related to its best-in-class lithium-Ion battery safety technology. 

That work could deliver financial rewards, maybe even windfalls, sooner than later, with the company saying it is nearing its inflection point with investments made across research and development, facility infrastructure, SG&A, and assembling a high-caliber workforce in the past year likely to translate into near-term customer sales.

Thus, it's hard to argue against KULR's case on a forward-looking basis that they are on the precipice of an across-the-board operational breakout. Remember, too, KULR accomplished laying that foundation during several of the most challenging quarters in decades. 



Video Link: https://www.youtube.com/embed/oE5JyViwStM

Meeting The 2021-22 Challenge 

In fact, KULR showed it can do more than survive unprecedented times; it can thrive. Its recent strategic investments prove that, with the build-out of its holistic, total battery safety platform providing customers with an extensive set of solutions to achieve battery sustainability within their respective ecosystems. Better still, those investments have opened the door well beyond its revenue-generating focus of 2021, putting multiple sources of income into play after expanding its go-to-market efforts by up-selling and cross-selling the individual components of its comprehensive platform through a product sales or subscription model. 

That's a new strategy. But don't think they abandoned the old; they simply enhanced it in a way to attract and keep customers for the long term. That helps support its legacy contracts and make new customers long-term value drivers. Moreover, the enhanced revenue-generating strategy can provide rapid revenue growth and sales visibility, which provides investors and analysts a road map to more appropriately value KULR stock. And those revenues could grow faster and higher than many think.

That results from KULR leveraging the strength of its holistic platform to penetrate potentially lucrative untapped sectors and markets. Remember, there are plenty of markets where KULR technology is a value-added feature, which has led to customer contracts and interest across several verticals, including energy storage, battery recycling, electric aviation, industrial and power tools equipment, and e-mobilities. KULR highlighted that all tolled, it can target significant revenue-generating opportunities from over 300 enterprise and government organizations. 

And they didn't infer that doing so would take multiple quarters. Instead, KULR noted that some of those opportunities have already been added to the sales pipeline. 

Ramping Sales With Global Business Giants

That's likely to result in KULR beating its bullish forecast. Factoring in macro-economic pressures easing and potential deals created as a result of a new spending bill, that's a more probable proposition than not. Also, while new customers are targeted for 2H/2022, its legacy deals also benefit from follow-on orders, with Lockheed-Martin (NYSE: LMT, $LMT) adding to its prior demand for its space-developed phase change material (PCM) heat sink technology. 

And they aren't the only global business giant doing business with KULR. NASA, Andretti Enterprises, Leidos (NYSE: LDOS), and others are also taking advantage of KULR's highest standard of battery safety technology. But that's just to name a few. Combining all market opportunities, up to billions of dollars are in the revenue-generating crosshairs from aerospace and defense companies. Considering KULR is a valuable contributor to and enabler of the emerging circular electrification economy, earning a significant dollar share of that massive market may be in the near-term playbook.

Frankly, things are already developing. KULR's recycling partner already provides immediate and open access to commercial partners and customers after securing United Parcel Service (NYSE: UPS, $UPS) shipping certification. That certification allows for the shipment of batteries utilizing the KULR Safe Case products through UPS' vast shipping network. But that's not all it does. 

The permit also allows its U.S. Department of Transportation compliant "Safe Case" to be used as a safe and reusable shipping container for Li-Ion battery transportation up to 2.1KWh. That allowance provides KULR's major recycling partner a safe shipping container that can handle batteries above 300Wh. For KULR and its partner, demand could be substantial, noting that billions of batteries need to be disposed of in an environmentally friendly and compliant manner. 

Still, while a massive market opportunity, it's one of many. 

Extending Its Market Reach

KULR revenues could get a quick boost from completing the licensing and starting the construction of its Fractional Thermal Runaway Calorimetry (FTRC). KULR guided to having multiple customer engagements already in queue and three purchase orders expected to close in September 2022. Accounting for those, new revenues as early as the start of Q3 could help fuel increases to analysts' already bullish price targets. Higher revenues need to be modeled for, and higher ones typically result in higher forecasts. There's more for analysts to consider. 

KULR secured four additional major commercial accounts for its Safe Case products. Deployment trials are underway, and if all goes according to plan, several multi-million-dollar recurring commitments will be in play over the next 18 months. Additionally, KULR highlighted the near-term potential of its biosensing solution for its Fortune 50 Metaverse customer, saying in its earnings call that its recently revised engineering design improves pliability, increases conductivity, and enhances softness to the skin. The next shipment from that deal is expected in late August 2022, with customer testing to occur shortly after that. 

Other value drivers are also near-term accretive, including its partnership with E-One Moli Energy Corporation to advance its total battery safety and thermal management solutions strategy. And more value may have to be factored in after the installation of a fully automated battery testing program with an initial processing capability of roughly 500,000 18650/21700 lithium-ion cells annually in support of NASA's manned flight specification EP-WI-037. 

That system installation is scheduled to conclude in Q3 2022, with full capability processing beginning in Q4 2022. Once completed, screened cell capacity will be allocated to NASA and the United States Department of Defense battery cell deployments, including internal requirements related to KULR's qualified commercial cell deployments.

2H/2022 Revenues Expected To Surge

What's it all mean? KULR is a company in motion. But more importantly, it is doing the right things in the right markets at the right time to generate significant near and long-term revenue growth. Remember, too, that KULR can do more than benefit from new and existing market opportunities; with its impressive IP portfolio, it can literally own the markets they serve. Hence, from a competitive perspective, KULR may not face any significant threat to its expected market share. 

Moreover, while KULR is making barriers to entry higher today, its commitment to developing a universal modular battery product by combining its PPR technology and CellCheck for E-mobility, enterprise energy storage, data center, and crypto-mining applications could make the competitive landscape nearly impenetrable. Furthermore, it may be difficult for clients to leave, noting the highly specialized products that KULR has developed. They certainly aren't one-size-fits-all, and retrofitting a competitive product, if any exists, could put programs back years. 

So, those that like the bottom line spelled out, here it is: the sum of KULR's parts should equate to a substantially higher valuation than current levels. And that's a presumption made after evaluating current contracts, balance sheet strength, expanded market reach, an almost impenetrable IP portfolio, and a KULR team that has increased nearly three-fold since last year to meet current and expected demand. 

Combined, they make a case for KULR investment consideration more than attractive; they make it compelling. But like any good deal, windows of opportunity don't stay open forever. In fact, investors often take quick advantage of stocks that have valuation disconnects of this proportion. And from the looks of things, that's precisely what they are doing, which is likely to keep this KULR rally intact.

 

Disclaimers: Shore Thing Media, LLC. (STM, Llc.) is responsible for the production and distribution of this content. STM, Llc. is not operated by a licensed broker, a dealer, or a registered investment adviser. It should be expressly understood that under no circumstances does any information published herein represent a recommendation to buy or sell a security. Our reports/releases are a commercial advertisement and are for general information purposes ONLY. We are engaged in the business of marketing and advertising companies for monetary compensation. Never invest in any stock featured on our site or emails unless you can afford to lose your entire investment. The information made available by STM, Llc. is not intended to be, nor does it constitute, investment advice or recommendations. The contributors may buy and sell securities before and after any particular article, report and publication. In no event shall STM, Llc. be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or made available by STM, Llc., including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information in this video, article, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. STM, Llc. strongly urges you conduct a complete and independent investigation of the respective companies and consideration of all pertinent risks. Readers are advised to review SEC periodic reports: Forms 10-Q, 10K, Form 8-K, insider reports, Forms 3, 4, 5 Schedule 13D. For some content, STM, Llc., its authors, contributors, or its agents, may be compensated for preparing research, video graphics, and editorial content. STM, LLC has been compensated up to ten-thousand-dollars cash via wire transfer by a third party to produce and syndicate content for KULR Technology Group, Inc.. for a period of one month.

As part of that content, readers, subscribers, and website viewers, are expected to read the full disclaimers and financial disclosures statement that can be found on our website.The Private Securities Litigation Reform Act of 1995 provides investors a safe harbor in regard to forward-looking statements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance are not statements of historical fact may be forward looking statements. Forward looking statements are based on expectations, estimates, and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward looking statements in this action may be identified through use of words such as projects, foresee, expects, will, anticipates, estimates, believes, understands, or that by statements indicating certain actions & quote; may, could, or might occur. Understand there is no guarantee past performance will be indicative of future results. Investing in micro-cap and growth securities is highly speculative and carries an extremely high degree of risk. It is possible that an investors investment may be lost or impaired due to the speculative nature of the companies profiled. 

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