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As Bearish Markets Pull Down Best Of Breed, Opportunities Get Exposed…And KULR Technology Group Is One Too Good To Ignore ($KULR)

As Bearish Markets Pull Down Best Of Breed, Opportunities Get Exposed...And KULR Technology Group Is One Too Good To Ignore ($KULR)

Bearish markets have no conscious. And they feed upon investor fear, uncertainty, and doubt. So much so that even the best of breed stocks, ideally positioned to seize billion-dollar revenue-generating opportunities and in the best position in history to do so, get pulled lower in an indiscriminate fashion. A perfect example is KULR Technology Group (NYSE-AMER: KULR, $KULR), a next-generation lithium-ion battery safety and thermal management technologies company that is coming off its best year ever, has contracts with the world's largest aerospace and defense companies, and a balance sheet to make record-setting 2021 performance the precursor of better things to come. In fact, KULR's own guidance suggests that to be the case.

And they have reason to be bullish. They know what others are just now seeing; the risk of fire and explosion inherent to lithium-ion battery use is getting too big to ignore. And not just for the compact consumer products markets, including cell phones, laptops, battery-powered skateboards, and leaf blowers. Other massive markets are also in play, and they, too, put multi-million dollar income potential into KULR's crosshairs. The better news- KULR isn't one of those small-cap companies hoping to land big deals; they already have. Current clients include NASA, Lockheed Martin (NYSE: LMT, $LTM), Johnson Controls, Leidos (NYSE: LDOS, $LDOS), and the Andretti United E Team racing group. But that's just the shortlist.

A Who's Who in the industry is lining up to test and potentially integrate what KULR is selling. 



Video Link: https://www.youtube.com/embed/cqFtv-RjT0I

An Essential Technology For Lithium-Ion Battery Safety

For good reasons. Those in the queue know that KULR technology and products can be essential to battery safety. And while its client list is impressive today, it's likely to get significantly larger in an industry expanding at a torrid pace. Keep in mind that the EV sector alone accounts for potentially millions in near-term sales. And with videos of fire and explosions in electric vehicles more common, and with billions of dollars worth of product reputation at stake, don't think they aren't considering KULR technology in its build. It could be the best decision they make to protect its brand image.

Tesla (NASDAQ: TSLA, $TSLA) alone expects to produce 20 million vehicles by 2035. And they are just one of more than twenty manufacturers now contributing to the sector. What's the common thread between them? Batteries. And each must stay focused on the potential of thermal runaway, the primary cause of battery fires. But more than remain focused, they need to protect consumers and their brands. Thus, with safety an issue, and even where government mandates could play a factor, KULR is in the right markets at the right time. Moreover, they are better positioned than any other company in the space to earn the lion's share of the market opportunities from the electric vehicle industry.

But the KULR battery-safety proposition goes well beyond the EV sector. Working with NASA, KULR has and continues to design innovative, IP-protected systems to monitor, package, protect and prevent battery systems from "thermal runaway." And as systems become more complex and a growing number of NASA products use batteries as their primary source of power, KULR's relationship with NASA could lead to potentially exponential revenue growth from that interest alone.

But that's still the tip of the potential revenue-generating iceberg.

Limitless Sector Applications To Drive Revenue Growth

Nearly the entire consumer, defense, and government business markets are in play. And considering that products from hoverboards to hypersonic missiles, and everything in between, are utilizing high-powered compact battery design, it's a market that won't slow anytime soon. On the contrary, despite the speed at which lithium-ion power has become mainstream, it's still in its infancy as to how it will be used as green energy initiatives continue to make global inroads. That's excellent news for KULR.

Keep in mind that these markets can't continue to grow without safety regulations. In fact, they aren't. The United States Coast Guard announced new safety requirements for the passenger vessel industry and provides additional battery safety options for the cargo, fishing, and cruise verticals. KULR is targeting that market with its KULR-Tech Safe Case enclosure preventing cell to cell thermal runaway propagation and deterring excessive heat, fire, and explosion. And it could become the go-to first-to-market product meeting the USCG requirements.

Actually, it could be the only option on the market that provides passive propagation resistant ("PPR") solutions for maritime lithium-ion battery safety. Thus, in addition to KULR's market opportunities getting substantially more significant, they could potentially corner the market in that application.

Best of all, deals with NASA, Lockheed Martin, and other industry behemoths could help establish the framework for safety regulations and protocols that set the benchmark for monitoring, recycling, transporting, and disposal of batteries. If that's the end result, KULR could transform from a roughly $2.5 million in sales company into a revenue-generating juggernaut faster than many think.

Momentum Is On KULR's Side

That's not an overzealous bullish presumption, either. In all respects, KULR is in hyper-growth. Its Q4 revenues increased by 267% to $766,000 compared to a year ago. Growth was equally impressive for the entire year, with income surging 287% to $2.4 million in 2021 from $624,000 in 2020. Perhaps the best news was in the commentary, with KULR guiding for revenue growth to continue, with early success in penetrating the energy storage, battery transportation, and recycling sectors continuing to gain revenue-generating traction.

Moreover, KULR can leverage its business tailwind with its $14.9 million in cash reported at the end of the last quarter. Frankly, they already are. KULR announced a three-year multi-million-dollar deployment order for its PPR solution suite from Volta Energy Products, a subsidiary of Viridi Parente, Inc. The PPR solution, which includes the patented thermal runaway shield ("TRS") product, will be used for Volta's stationary and mobile lithium-ion battery power systems. The initial deployment order totals approximately $1.6 million for immediate delivery, with higher volume shipments expected throughout 2022. Thus, that deal alone equals more than half of all 2020 revenues.

And they are likely to get a significant boost in revenues after acquiring the patented intellectual property rights from Centropy AB. That deal brings advanced carbon fiber-based heatsink technology for HPC applications, strengthening its portfolio of thermal management solutions for cloud computing, AI, and crypto mining applications. And with accretive integration, Centropy's cooling solutions can be quickly combined into KULR's existing technology portfolio and extend its business services reach to include air and liquid-cooling of HPC applications such as crypto mining, cloud computing, and AR/VR simulations. Thus, those revenues can come sooner than later from markets that serve up additional billion-dollar shots on goal. 

That's not all.

Revenues Are Accruing, Could Set All-Time Record 

Currently adding to the 2022 revenue stream is an initial order from Lockheed Martin totaling approximately $500,000 for its PPR battery systems. Like its deal with Volta, this one too is front-loaded, with the initial order set for immediate delivery and the starting point in the partnership as LMT leverages KULR's technological advancements in PPR energy products for its Advanced Energy Systems. And that's not all.

KULR also expanded its services with Heritage Battery Recycling due to HBR's merger with Retriev Technologies, creating the largest lithium-ion battery recycler in North America. That expansion adds to the existing e-bike and scooter customer programs, positioning KULR with ample sales opportunities from providing safe transportation logistics to Retriev's battery collection operations in North America.

Of course, that could tie in nicely with KULR joining Clarios in the U.S. Department of Energy's lithium-ion battery lifecycle initiative to develop the manufacturing and reuse of lithium-ion batteries and their chemical elements in the United States for the purpose of domestic national interest. In other words, battery safety is a hot topic from the private sector to the public interest, and moreover, that discussion is generating real-time opportunities for KULR.

The totality of what's in play could be why analysts at Litchfield Hills Research Group are bullish on KULR and its stock.

Analyst Models For Surge In Share Price

Recently updated research by Litchfield modeled that KULR is significantly undervalued and set a 12-month price target of $7 per share. They justify that bullish thesis based on the discounted value of future earnings and its valuation relative to comparable firms in the industry. Moreover, it's supported by an expected surge in revenues over the next twelve months, which could tighten the valuation disconnect sooner rather than later.

Indeed, KULR is making the moves to make sure that happens. And while some of its actions affected Q4 bottom-line results, it's essential to recognize that expenses in Q4 set the stage for potentially exponential growth this year. Thus, without digging into the financials beyond the headlines, investors are missing that KULR front-loaded expenses in Q4 to facilitate an expected surge in growth in Q1. Revenues noted earlier, which suggest that KULR may have already booked sales close to 2020 revenues in Q1 alone, indicates that may be the case.

Remember, those costs to close the year included an aggressive expansion of the company's workforce, strengthening its infrastructure, and an ambitious R&D and sales pipeline accretive to current and future quarters' bottom line. Thus, a blowout Q1 could be the first of four in 2022. 

Appreciably Undervalued At Current Prices

The sum of KULR's parts shows that may be the case. And there are simply too many revenue-producing contracts contributing right now to consider KULR's roughly $1.60 share price anything but appreciably undervalued. Still, while painful for long-time investors invested at higher prices, knowing that KULR is in its best operating position in history, with a balance sheet that can accelerate growth, cost averaging may be a wise consideration. For new investors, current price levels suggest KULR stock can be a gift that keeps on giving through the remainder of 2022.

Therefore, while a window of investment opportunity exists today, it likely won't last long. Why? Because there are too many value-creating tangibles already at work to drive revenues and shareholder value higher. Moreover, KULR's intrinsic value alone justifies a significantly higher share price. And when factoring in the inherent potential from its contracts with several of the world's largest companies, KULR's share price should command a multiple to send prices well beyond 52-week highs. Thus, just like its battery-safety solutions being too good to ignore, so too may be this investment opportunity.

 

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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