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Exclusive: Should You Buy Solid Power on the Dip?

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Should You Buy Solid Power on the Dip?

#Buy #Solid #Power #Dip

Solid Power (SLDP) made its stock market debut in December of 2021 as the only publicly traded pure-play solid-state battery manufacturer for electric vehicles. However, the stock has declined more than 45% since due to its bleak financials amid an extended market correction. Given the rising demand for EVs worldwide, will SLDP be able to rebound soon? Read more below….



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Solid Power, Inc. (SLDP) is a pure-play solid-state battery cell manufacturer. The company’s products have applications in electric vehicles. It went public through a reverse merger with blank check company Decarbonization Plus Acquisition Corporation III on December 9, 2021, raising $542.90 million in gross proceeds. As of December 9, 2021, SLDP is the only pure-play solid-state battery company to trade on the public markets.

Regarding this, SLDP Co-founder and CEO Doug Campbell said, “Solid Power has spent the last ten years developing all-solid-state battery technology that is designed to deliver the increased performance demanded by both automakers and consumers. We are excited to have completed our business combination with DCRC and we are looking forward to our future as the only pure-play solid-state company trading on the public markets.”

However, the company stated in a press release that its capital-light business model through vehicle integration is expected to occur in 2026. Shares of SLDP have slumped 45.8% since their Nasdaq listing. In addition, the stock plummeted 19.3% year-to-date and 8.3% over the past five days. The SLDP’s bleak financials and growth prospects and pessimistic broader market sentiment caused the stock to lose momentum since its public debut.

Here’s what could shape SLDP’s performance in the near term:

Bleak Financials

SLDP’s revenues increased 357.5% year-over-year to $2.20 million in the fiscal first quarter ended March 31, 2022. However, the company’s total operating expenses increased 183% from the same period last year to $13.50 million. Consequently, the operating loss widened 163.5% from the prior-year quarter to $11.31 million. Pre-tax loss worsened 44.1% from the year-ago value to $10.37 million, while net loss widened 44.9% year-over-year to $10.34 million. Loss per share stood at $0.06.

In addition, net cash and cash equivalents used by operating activities increased 294.4% from the same period last year to $14.37 million. Cash and cash equivalents balance stood at $450.41 million as of March 31, 2022, compared to the $513.45 million balance as of December 31, 2021.

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Premium Valuation

SLDP’s trailing-12-month P/E multiple of 112.63 is 777.4% higher than the industry average of 12.84. In addition, the stock’s forward EV/Sales multiple of 173.94 is significantly higher than the industry average of 1.11.

Its trailing-12-month Price/Book ratio of 2.36 is 7.2% higher than the industry average of 2.20. Moreover, SLDP is currently trading 299.68 times its forward Sales, 31,298.2% higher than the industry average of 0.95.

POWR Ratings Reflect Bleak Prospects

SLDP has an overall rating of D, which translates to Sell in our proprietary POWR Ratings system. The POWR Ratings are calculated considering 118 distinct factors, with each factor weighted to an optimal degree.

SLDP has a grade of D for Value and Quality. The stock’s stretched valuation compared to its peers justifies the Quality grade. In addition, the company’s trailing-12-month gross profit margin and ROTC are negative 3.64% and 7.4%, respectively, in sync with the Quality grade.

Of the 93 stocks in the Industrial – Equipment group, SLDP is ranked #75.

Beyond what I’ve stated above, view SLDP ratings for Growth, Momentum, Sentiment, and Stability here.

Bottom Line

SLDP is an industry-leading developer of solid-state battery cells for EVs. However, given the global supply chain constraints and lithium supply shortage, SLDP’s operating expenses have increased substantially. As the adverse macroeconomic conditions persist, the company is expected to face severe production and cost headwinds in the near term. Thus, the stock is best avoided now.

How Does Solid Power (SLDP) Stack Up Against its Peers?

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While SLDP has a D rating in our proprietary rating system, one might want to consider looking at its industry peers, Standex International Corporation (SXI), Preformed Line Products Company (PLPC), and Belden Inc. (BDC), which have an A (Strong Buy) rating.


SLDP shares closed at $6.90 on Friday, down $-0.15 (-2.13%). Year-to-date, SLDP has declined -21.05%, versus a -17.67% rise in the benchmark S&P 500 index during the same period.


About the Author: Aditi Ganguly

Aditi is an experienced content developer and financial writer who is passionate about helping investors understand the do’s and don’ts of investing. She has a keen interest in the stock market and has a fundamental approach when analyzing equities.

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Exclusive: Manufacturing a better way to reduce waste – TalkOfNews.com

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Manufacturing a better way to reduce waste

#Manufacturing #reduce #waste

The post Manufacturing a better way to reduce waste appeared first on Sage Advice United Kingdom.

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Exclusive: 3 Home Improvement Stocks That Can Renovate Your Portfolio – TalkOfNews.com

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3 Home Improvement Stocks That Can Renovate Your Portfolio

#Home #Improvement #Stocks #Renovate #Portfolio

During a bear market, home improvement stocks have historically been solid defensive plays

The housing sector is slowing down. Rising mortgage rates are having the predictable effect of cooling down demand.



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Or are they? While homeowners may not be able to get the same premium they could command just one year ago, there is still an ample supply of homes on the market. And once these homes change hands, new homeowners will be ready to make their new house their own.

However, that’s not the only catalyst for home improvement stocks. Homeowners who are deciding to “love it” rather than “list it” are likely to put some money into one of their largest investments as they wait for the housing pendulum to swing back in their favor.

In this article, I’ll give you three home improvement companies that continue to generate strong revenue and earnings. And two of these companies are also members of the exclusive Dividend Aristocrat club. These are companies that have increased their dividend for at least 25 consecutive years.

If that’s the kind of balance of growth and income that appeals to you, it may be time for you to consider these three home improvement stocks.

Lowe’s (LOW)

Lowe’s (NYSE: LOW) stock is down about 30% in 2022. That’s larger than the broader market. But in the last month, the stock is showing signs of forming a bottom. And with the stock near its 52-week low, it may be time for investors to take a closer look at the stock.

The driving force for that sentiment may be the company’s earnings. In May, Lowe’s closed out its fiscal year. Revenue growth came in at an uninspiring 1% growth. But earnings were up 19%. Even if companies are heading into an earnings recession, a P/E ratio that is slightly below the sector average means it’s likely that Lowe’s will be able to post growth, albeit perhaps slower growth, in its next fiscal year.

And Lowe’s offers investors a rock-solid dividend that it has increased in each of the last 48 years. The current payout is $3.20 per share on an annual basis, and the company has averaged 17% dividend growth over the past three years.

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Home Depot (HD)

Just as investors can debate Coca-Cola (NYSE: KO) versus Pepsi (NASDAQ: PEP) among consumer discretionary stocks, they can frequently plant their flag with Lowe’s or Home Depot (NYSE: HD) when it comes to home improvement stocks.

To be fair, neither of these stocks looks like a bad selection for investors who are concerned about a recession. Home Depot delivered a strong earnings report in May 2022. Revenue was up 3.8% and earnings per share were up 5.8%. The company delivered strong same-store sales growth that was due in large part to its relationship with professional contractors.

Of the three stocks in this article, Home Depot has the largest dividend yield (2.68%) as well as the largest payout ($7.60). And while it’s not a dividend aristocrat the company has increased its dividend in each of the last 14 years.

Sherwin Williams (SHW)

Paint is one of the most cost-effective ways to give a house a refreshing update. And as we move into the fall, homeowners attention turns to finding that perfect swatch of paint to transform a room. That’s enough to put Sherwin-Williams (NYSE: SHW) on my radar and perhaps yours as well. Historically the current quarter and the following quarter are the company’s strongest in terms of revenue.

But the skeptics will point to the fact that earnings have been a mixed bag. The company has missed analysts’ expectations in two of last four quarters and in the other two the gains were on the tepid side. And I’ll concede that a mixed earnings outlook will probably bring current price targets down from their 30% upside.

That being said, SHW stock offers both growth and income which is appealing in this volatile market. Sherwin Williams dividend yield of 1% isn’t likely to make income investors swoon. But the company does payout $2.40 on an annualized basis. The company also sports a three-year dividend growth of 24.26% and has increased its dividend in each of the last 44 years.

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Exclusive: VW and Goldman-backed battery maker Northvolt gets $1.1 billion funding injection – TalkOfNews.com

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VW and Goldman-backed battery maker Northvolt gets $1.1 billion funding injection

#Goldmanbacked #battery #maker #Northvolt #billion #funding #injection

Northvolt’s most recent funding announcement comes at a time when major economies are laying out plans to move away from vehicles that use diesel and gasoline.

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Electric vehicle battery maker Northvolt on Tuesday announced a $1.1 billion funding boost, with a range of investors — including Volkswagen and Goldman Sachs Asset Management — taking part in the capital raise.

In a statement, Sweden-based Northvolt said the $1.1 billion convertible note would be used to finance the company’s “expansion of battery cell and cathode material production in Europe to support the rapidly expanding demand for batteries.”

Other investors in the raise include Baillie Gifford, Swedbank Robur, PCS Holding and TM Capital.

Northvolt recently said its first gigafactory, Northvolt Ett, had started commercial deliveries to European customers. The firm says it has orders amounting to $55 billion from businesses such as Volvo Cars, BMW, and Volkswagen.

Gigafactories are facilities that produce batteries for electric vehicles on a large scale. Tesla CEO Elon Musk has been widely credited as coining the term.

Read more about electric vehicles from CNBC Pro

Northvolt’s most recent funding announcement comes at a time when major European economies are laying out plans to move away from road-based vehicles that use diesel and gasoline.

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The U.K., for instance, wants to stop the sale of new diesel and gasoline cars and vans by 2030. It will require, from 2035, all new cars and vans to have zero-tailpipe emissions. The European Union — which the U.K. left on Jan. 31, 2020 — is pursuing similar targets.

As the number of electric vehicles on our roads increases, the competition to develop factories capable of manufacturing EV batteries at scale is intensifying, with companies like Tesla and VW looking to establish a foothold in the sector.

In a statement issued Tuesday, Northvolt’s CEO and co-founder, Peter Carlsson — who previously worked for Tesla — was bullish about the future. 

“The combination of political decision making, customers committing even more firmly to the transition to electric vehicles, and a very rapid rise in consumer demand for cleaner products, has created a perfect storm for electrification,” he said.

According to the International Energy Agency, electric vehicle sales hit 6.6 million in 2021. In the first quarter of 2022, EV sales came to 2 million, a 75% increase compared to the first three months of 2021.

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