KULR Technology (NYSE: KULR) stock is ripping higher in October, scoring an over 98% increase since mid-October on appreciably higher average daily volume. The move, by the way, is the most powerful in months. In fact, if shares hold current gains into the close on Friday, the stock price will reach level-highs not seen since April. But here's the better news. The bullish run isn't based on hype or an investor momo play. Instead, KULR's run is backed by substance, supported by announcements indicating that growth in Q4 and all of 2023 could accelerate. (*price of $2.14 at 16:03 EST on 10/27/22, Yahoo! Finance)
That's not all. KULR is showing that its brand presence is earning tremendous traction as well. That's evidenced by increasing its development work with the Andretti Racing team, the inclusion of the No. 98 KULR Technology Honda for the 2023 Indianapolis 500®, and several follow-on contracts from global business behemoths that continue to validate products in KULR's growing arsenal. Those announcements inspired interest. But also in play is KULR's earnings conference call in November. Speculation is that while earnings may add to the prior record-setting performances, comments could help shape the narrative that 2023 will be a breakout year for the company.
Reading between the lines of recent KULR updates suggests that's a likely scenario. If those suspicions are confirmed, its 52-week high of $3.81 may be more than the next target; it will be put in the crosshairs.
KULR Technology Continues Its Streak Of Validation
Those following the KULR story probably wouldn't be surprised to see this impressive run get extended. Based on several measurable metrics, they know that KULR is better positioned for growth today than at any time in its history. That proposition is driven by new products, developing technologies, and extension into new market opportunities that present billion-dollar revenue-generating shots on goals.
Its KULR SafeCase technology, a reusable, safe, high-energy battery transportation, and storage solution, is attracting a large part of the recent spotlight. It received a production prototype order from a client who KULR described as a "top-tier power tool manufacturer" that is a leading manufacturer in sustainability and safety within the industrial tool and household hardware sectors. More important to KULR's interests, they are also said to be active in initiatives surrounding lithium-ion battery safety, transportation, education, and recycling.
That deal, like its one made in the metaverse space with another unnamed "global business leader," is the type that could lead to substantial add-on contracts. That's because clients aren't coming to KULR out of convenience; they are coming out of necessity, with KULR battery-safety technology continuing to prove it's a best-in-class, best-in-industry solution to protect company assets and programs.
Those put off by the "unnamed" aspects of the agreements mentioned above shouldn't be skeptical of their value. Instead, looking at the deal from the perspective that they are potentially significant enough to earn confidential treatment is a bullish indicator. Remember, it's not uncommon for companies to maintain secrecy when trying to protect proprietary interests.
And because KULR technology could provide client companies means to gain competitive advantages from its proprietary technology, the vagueness of the non-disclosure shouldn't be a concern. Another plus is that clients want to use KULR technologies to protect assets worth a few dollars to billions of them. Thus, when any global leader embraces KULR technology, it's further validation.
Deals, Partnerships, And, Yes, More Deals
Of course, revenue generation matters, too. And KULR is creating new pathways to generate more of it. As noted, its SafeCase technology solution is a current focus. And is attracting multi-level interest from its unique ability to allow KULR and its partners to leverage special permits from the U.S. Department of Transportation for the safe shipping of lithium-ion batteries up to 2.5 kilowatt-hours. Incidentally, from a competitive perspective, with SafeCase being the only known product providing standard and customized case sizes while incorporating a reusable, sustainable, and cost-effective design, that landscape could be thin.
But there's more to appreciate than its design. From a functional standpoint, SafeCase provides cost-effective warehouse storage for fire safety and transportation. I also meet specific needs in the commercial lithium-ion battery markets, including providing safety technologies for products using powerful, densely packed lithium-ion power. By the way, referencing industrial applications includes protecting everything from consumer products to large-scale industrial applications and everything in between. That does more than put multiple market sales opportunities in play; it diversifies KULR's near-term opportunities and strengthens its long-term ones.
Keep in mind that KULR's patented technology makes them the only known company in the world with a product approved by the DoT for storage and transport of lithium-ion batteries managing up to a capacity of 2.5 kWh for recycled, prototype, and damaged, defective, and recalled batteries. That distinction and advantage should be under-appreciated. More importantly, it shouldn't be undervalued because it immediately puts multiple sector opportunities in play. Despite the recent share price surge, that may still be the case considering that this product alone can justify supporting the current market cap from a forward-looking sales opportunity perspective.
Accruing Deals From Global Business Leaders
But remember, the DoT opportunity is a small part of that technology reach. Ongoing work with the Andretti team is also opening revenue-generating opportunities in the E.V. sector, with its SafeCase and energy management platform a seamless fit to provide battery safety applications in the consumer side of those markets. People needing battery-safety solutions include the prominent sector giants like Tesla (NYSE: TSLA), smaller players like Rivian (NASDAQ: RIVN), and others needing lithium-ion technology to power their products. Here's the interesting part of that opportunity; these industries may have no choice but to integrate robust battery-safety technologies.
Remember, tens of millions of batteries will be needed and used to power that sector alone. And it's no secret that intensified focus on how to help mitigate potentially catastrophic battery-related events caused by these batteries is gaining traction. So much so that mandates could be enacted to protect users in both consumer and industrial markets. In the case of battery safety, especially with the massive power encapsulated in small housings, those protections are warranted. And with lithium-ion batteries the critical ingredient to power phones, automobiles, tools, and even trips to space, there's plenty supporting safety advocates' case for having safety measures embedded as part of product development.
If that's the end result, KULR is probably the best-positioned company to capitalize on the opportunity. And that would deliver to them a battery safety and global energy storage solutions market expected to reach $554 billion by 2035. But it's not likely the dollar opportunity stops there. Worldwide interest in green-energy solutions could make an already hot market opportunity scorching. And that could further incentivize the KULR bulls to bid shares higher ahead of the investment pack.
Near-Term Shots On Goals
Doing so sooner than later would be a timely consideration. KULR's revenue-generating mission is already generating results, with its suite of innovative technology providing essential thermal management and safety system technologies to just about any sector in business using lithium-ion power. That includes government agencies like NASA and the U.S. Department of Defense, two agencies already on the KULR client list. But that list also includes global business giants, including Lockheed Martin (NYSE: LMT), speculation about Meta (NASDAQ: META) being one, and Leidos (NASDAQ: LDOS), to name a few.
They are choosing to work with KULR for good reasons. Foremost is KULR's ability to serve client-specific needs through its highly configurable thermal interface materials. Especially its lightweight heat exchangers and monitoring systems help to ensure that lithium-ion batteries and the machinery they power can operate efficiently while minimizing the risk of overheating or explosions. Additional market applications noted include KULR's technologies providing a means for the safe transportation and compliant disposal of potentially millions of lithium-ion batteries, putting enormous revenue in play for that service alone.
But it isn't alone. Other value drivers include some that are out of this world, with NASA using KULR's technologies to transport and store laptop batteries on the International Space Station. KULR helps protect those billion-dollar assets with its Thermal Runaway Shield (TRS) technology that effectively prevents battery explosions by protecting against the scorching heat encountered during its deployment to space. NASA has also utilized KULR's carbon fiber thermal management technologies in the Mars Perseverance Rover and their 2017 NICER mission to mitigate the risk of excessive cooling. Earning the repeat business of NASA to protect multi-billion dollar assets is a testament to the importance and efficiency of KULR's technologies. There's plenty more to like.
Acquisitions contributing to KULR's value proposition are examples.
Acquisitions Are Accretive And Potentially Lucrative
KULR has never been afraid to acquire, and it recently did by announcing its acquisition of VibeTech and the subsequent launch of KULR VIBE. KULR VIBE is an AI-driven vibration reduction solution that addresses energy loss from excessive machinery vibration. Excessive vibration is a plague to modern advanced machinery that not only results in the diminished efficiency and lifespan of the asset but can also increase the risk of operator injury. Utilizing a vast database of vibration signatures, the KULR VIBE suite of technologies uses proprietary sensor processes and state-of-the-art learning algorithms to improve machinery balance and forecast component failure. Its A.I. learning algorithms can locate areas where excessive vibrations cause energy loss, potentially preventing performance and maintenance issues before they become dangerous.
Accretive to its other technology applications, VIBE technology can meet demand from customers across the motorsports industry, aviation, transportation, renewable energy (wind), and manufacturing sectors. It also serves industrial, performance racing, and autonomous aerial (drone) applications with precise balancing solutions by successfully pinpointing areas where excess vibrations cause a loss of energy that can lead to system malfunctions, weakened performance, and maintenance issues. In other words, businesses across the global spectrum in multiple sectors need what KULR sells. Deal-making momentum shows that's evident.
And several are with global business behemoths like Lockheed Martin, which just upped its order from KULR for its Phase Change Materials (PCM) heat sink technology. This carbon fiber-infused heat sink uses PCM technology to either provide or absorb heat, extending the life of crucial components used by Lockheed Martin. If all goes well during current evaluations, speculation is that the next contract with LMT could be massive. Another is with Volta Energy Products, a subsidiary of Viridi Parente Inc., calling for a multi-million-dollar deployment order of KULR's Passive Propagation Resistant solution suite over three years. Notably, Volta raised $95 million to support the creation of "fail-safe" lithium-ion battery technology and plans to market 750 to 1,000 battery storage units in 2022 using KULR's technology. The companies note, however, that this number could increase to 50,000 units by the end of 2023. If so, KULR could score revenues of $40 million during the agreement period. Better still, if pricing power stays constant, KULR could generate revenues as high as $80 million.
All of the above hasn't been absent from analysts' work pages. Litchfield Hills Research analysts forecast that KULR's share price could reach $7 during 2023. Considering that more deals have been done since that bullish model provided that target, it could be conservative.
KULR Is A Compelling Investment Consideration
Perhaps most simply stated, the sum of KULR's parts totals to a simple premise- KULR stock is ripe for immediate consideration. That's not an overly bullish sentiment; it's justified. Over the past quarters, KULR has expanded its business presence to include revenue-generating opportunities in the drone, maritime safety applications, enterprise energy storage, and crypto-mining applications sectors. Each needs energy storage and thermal management solutions, and while any of those markets present value singularly, it's the combined potential that investors should be appraising.
Thus, whether viewed from an operational or a corporate, the KULR value proposition is compelling. Its balance sheet is impressive, they are capitalizing on sales opportunities in multiple high-dollar markets, and are already selling to a global market needing best-in-industry battery safety solutions. Plus, they continue to score deals with some of the world's most prestigious agencies and companies.
Those positives are a testament to how vital KULR technology can be for clients. But it's also supportive for investors looking for undervalued investment opportunities in high-growth sectors to put KULR high on the consideration list. Perhaps even at the top of it.
Indeed, KULR is having quite a run. But the fact is that KULR's sum of its parts suggests there is still considerable room to move higher. Analysts at Litchfield see potential; now, it's only a matter of investors realizing the same and closing the disconnect. And if all stays on course, that can happen faster than many think.
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