Investing in growth companies is an excellent way to create long-term wealth. Better still, investing in those companies with accelerating growth can be a means of turning impressive gains into exponential portfolio-changing investments. Most investors prefer the latter. Of course, these same investors need to be willing to do some homework to catch these emerging opportunities as they unfold.
The great news is that KULR Technology Group (NYSE-AMER: KULR) is doing that work for them, shown by posting consecutive quarterly triple-digit revenue growth and record-setting operational performance. The better news is that revenue growth is accelerating, putting KULR in a position to report its best operating results in history during the next two quarters.
Last month, KULR hit its earnings report out of the park, reporting a 212% increase in comparative Q2 revenues. Better still, KULR ended the quarter with the highest cash position in its history, enabling them to accelerate partnerships and agreements taking traction from earlier this year. Thus, when a company says it’s in its best financial position ever AND is posting record-setting growth, it may be a good idea to follow along. KULR, by the way, is yet to disappoint on meeting its often bullish guidance.
And by targeting massive diversified markets that need cutting-edge battery safety technology, KULR deserves to enter its Q3 with an optimistic swagger. After all, they have gone from a small business focused primarily on battery-safety solutions into a $218 million battery-safety sector leader, advancing critically needed technology making energy storage systems (lithium-ion batteries) safer, lighter, more functional, and easier to transport.
In fact, it’s a fair assumption to think KULR technology may soon be implemented into everything from power tools to hypersonic missiles. Already, its battery-safety technology made a trip to Mars, with its technology implemented on the Perseverance Mars 2020 rover. That’s an impressive validation from NASA for sure. There’s plenty more on that front.
Validating Its Own Growth
Still, while KULR indeed earns its share of praise from global business giants, they do a great job creating impressive headlines for itself as well. Most recently, they posted a six-month increase in revenues of 275% compared to the same period last year. That jump supports the noted Q2 increase of 212% YoY and indicates that momentum is clearly in place. Moreover, it shows the disconnect between KULR’s share price and its operating performance. Simply put, KULR stock should be trading significantly higher.
It certainly did after releasing earnings, surging by more than 11% to a high of $2.27 that day. A few days prior, shares surged to $2.38 as investors traded ahead of the earnings report. Now, a sell the news mentality has gripped the stock, sending it back into a consolidation period at roughly $2.12 per share. But, that’s not entirely bad news, especially for investors looking for what could be ground-floor entry points. And at these levels, coupled with technical analysis showing KULR coiled and ready to spring higher, taking a position with a small amount of patience may be a wise consideration.
Keep in mind, KULR stock soared 16% intraday in August, showing just how powerfully its stock can react to favorable news. And some of that fuel may be near.
Multiple Markets – Rapid Growth
In fact, news can come from many client sources through KULR’s carefully crafted plan that targets multiple markets while maintaining an accretive contribution. That plan, by the way, not only allows them to turn ambition into dollars but also provides flexibility for its battery safety technology and solutions to adapt to changing market conditions. Better still, it allows for speed of execution, making KULR ideally positioned to quickly capitalize on market opportunities with the growing battery mobility and energy storage product sectors.
Valid with any sector, being first to market is crucial. And KULR is beyond first; its growing IP protections may help keep them exclusive for many years to come. Moreover, beyond potential market exclusives, its IP allows KULR to extend its interests into a number of verticals. Most recently, KULR earned special transportation permits from the U.S. Department of Transportation (DOT). Better than earning them, though, KULR is already monetizing them as one of the few approved vendors allowed to transport lithium-ion batteries that have reached the end of their useful life or need to be moved to other locations.
Revenues come from KULR helping to recycle and dispose of these batteries, including recycled, prototype, and DDR (damaged, defective, and recalled) products. Notably, KULR didn’t earn the permits from having the right trucks and equipment. They won the contract because they can mitigate the risk of fire and explosion of these highly volatile batteries. Thus, it’s the technology catching the eye of the DoT.
Indeed, those permits can become a revenue-generating juggernaut of sorts, especially with millions of spent batteries needing proper disposal every year. But, consider that a kicker in the grander plans to generate substantially higher revenues from its core business focus.
Trend Is KULR’s Friend
The adage “the trend is a friend” is usually a phrase to follow. Undoubtedly, for any company, it’s much easier to operate with the flow than against. And KULR is definitely creating its own current.
Even better, they are using it to their advantage by making deal after deal to integrate its innovative power management and safety solutions into a broad assortment of client products. Moreover, by controlling the power of technology and innovation to preserve battery safety and thermal stability by managing every piece of its dynamic business, they stay in style and enhance sales momentum.
Its recently announced deal to develop a battery cell screening and automated testing system for its Department of Defense and Aerospace customers shows their diversity. It’s part of a project to extend strategic battery reserves and implement safety thermal runway technology to mitigate the risk of fire and explosion. KULR intends to take this project from the ground up, supported by a campaign to build an open-source flight control system, with the test pilot system planned to be finished in the first half of 2022. KULR expects to process up to 1.2 million 18650 and 21700 cylindrical battery cells per year.
KULR also intends to show that its carbon-fiber technology will offer more than an ability to make lithium-ion battery technology safer and faster. They expect its carbon-fiber technology to enable lithium-ion batteries to charge faster and last 20 times longer than before. Interim updates can be significant value drivers, perhaps as early as Q4. Moreover, the program is substantial enough to expect several updates before the end of the year.
Enhancing The KULR Proposition
The DoT permits and DoD contracts add immediate value. But, investors can’t ignore the core revenue-generating opportunities already in play. The second-quarter report emphasized its whos’ who list of clients, with KULR monetizing agreements with NASA, Marshall Space Center, Lockheed Martin, and Andretti Enterprises.
Moreover, its entrance into the multi-billion-dollar drone industry opens tremendous near and long-term revenue-enhancing opportunities. Then factoring in its collaborative development and marketing deal with Andretti Enterprises to develop battery-safety solutions for the EV markets, KULR is set to monetize multiple programs that can each deliver sizable and sustainable revenue streams.
Know this, too. KULR is driving shareholder value from far more than the handful of large clients already mentioned. They are also adding substantial value from deals being made with SAFT, a Total Company (NYSE: TTE), Andretti Technologies, Volta Energy, Leidos (NYSE: LDOS), Lockheed Martin (NYSE: LMT), and Airbus (OTC Pink: EADSY) to name a few more. In other words, small-cap KULR is doing business with billion-dollar market cap clients. The better news is that it’s a good fit.
And here’s a potential deal that could be a company game-changer. According to KULR, the FAA is evaluating KULR’s battery-safety system and technology for in-flight use on aircraft. One would think that a decision to implement KULR technology would be forthcoming, especially since it’s not cost-prohibitive to include and that the FAA is mandated to provide for the safety of passengers and cargo. Thus, if approved and ordered for aircraft, it would be an overnight company game-changer for KULR. If news breaks on that front, look out above.
Low Share Price, Big Technology
Heading into the back half of 2021 and coming off of record-setting growth, it’s clear that KULR has caught the attention of multiple industry giants. In fact, it’s fair to say that its battery-safety technology has attracted the interest of the most renowned and influential companies in aircraft, electric vehicles, consumer goods, military, and defense. Hence, from a marketing perspective, it can’t get any better than that.
And from an investor’s perspective, KULR is strong as well. They posted consecutive triple-digit percentage revenue increases, have increased its client list substantially, and earned several permits that add a kicker to existing revenue streams.
Moreover, they have a deal with Andretti Technologies that could co-market valuable assets to the EV sector. Better still, KULR is said to be in discussions with a global consumer products maker to integrate KULR’s batter safety solutions. That could include potentially millions of phones known to catch fire and explode through battery malfunction. But, consider anything with a lithium-ion battery as in play.
Thus, the remainder of 2021 could see a catalyst or two hit the wires. Indeed, trying to swing trade KULR ahead of several expected news updates could leave investors leaving substantial share price appreciation on the table. Hence, day trading on KULR may be risky ahead of potentially company-changing news.
Frankly, the best investment strategy for those interested in KULR is to do what they are doing…stay with the trend. It’s a safe play that gives substantial exposure to multiple billion-dollar sectors.
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