KULR Technology Group (OTC Other: KULR) stock may be trending lower with general market weakness, but rest assured, the decline isn't company specific. In fact, arguments can be made that KULR is in the best operating position in its history. Better still, a recent interview from the CEO at the Benzinga Small cap conference two weeks ago made it very clear that KULR is executing well in every category of its business. And there are absolutely no signs of slowing down.
In fact, KULR is inking partnerships and collaborating on development agreements that could drive this $2.05 stock exponentially higher. Moreover, after raising millions in capital last week and delivering blockbuster Q1 earnings, the selling pressure should be considered a gift.
There's no reason for KULR stock to be trading lower. Even its late April price of $2.64 gave little respect to the industry-changing thermal management and heat dissipation technology platforms brought to market by KULR. Those platforms, by the way, are the primary contributors to growth.
And growth was impressive, with KULR's Q1 revenue increasing by 439% year-over-year after KULR made significant investments in all areas of its business. Those enhancements are expected to add to revenue-generating momentum for the remainder of 2021 and beyond. Thus, another massive quarter is likely to follow the Q1 filing.
KULR also strengthened its balance sheet, which should push valuations higher when markets normalize.
Investors Provide $6.5 Million To Accelerate Commercialization
KULR also raised $6.5 million on May 20th, validating its robust platforms' value and accelerating commercialization efforts within e-mobility markets. Notably, the new capital significantly strengthens KULR's balance sheet and positions them well to advance its up listing process to a senior U.S. exchange. That process could be nearing completion, with a happy ending being the expected uplist.
Still, despite the busy earnings season that earns the headlines, KULR's business model is the main attraction. It's also essential to know that the efforts of KULR are always predicated on a value-generating outcome. In the current crosshairs, KULR is focused on near-term commercialization opportunities for its technology in energy storage, electrical transportation, and battery transportation markets.
Most recently, KULR announced its first new smart battery product for the $127 billion commercial drone market, which KULR sees as just the opening step in its comprehensive strategy to target adjacent markets. Better still, they are targeting additional demands that are complementary to its established battery safety and thermal management products. That balance positions the company well to seamlessly expand into other e-mobility markets this year.
And there's much more in play.
A Big Quarter For KULR
One of the big takeaways from its Q1 report is that KULR is capitalized to move its diversified commercialization strategy forward. And not only are they well-funded today, but their balances position them well to expand operations, support new business, and fund ongoing product development. Better still, a new facility said to be 4X larger than its current location will allow KULR to significantly expand bookings and client engagements, which should translate to potentially exponential revenue growth in the latter part of the year. For 2022 it can ramp considerably higher.
Other Q1 highlights noted KULR becoming the official thermal management and battery safety technical partner for Andretti Technologies, the advanced technology arm of Andretti Autosport founded by Michael Andretti.
For its part, KULR will establish a thermal management testing and design platform for high-performance battery solutions with the highest safety ratings specially adapted to the rigorous technical requirements of Andretti's global racing enterprise. That opportunity can get bigger with both partners focused on co-developing and co-marketing motorsports' battery and safety technologies to automotive partners for mass-market EV applications. Details on that are likely imminent.
Of course, EV racing is just one focus. In addition to the massive aerospace applications for thermal management and heat dissipation solutions, KULR expects to earn a substantial market share in the enormous microelectronics sector. In fact, Microsoft (NASDAQ: MSFT) knows the value already and included KULR solutions in its Surface Pro aboard the International Space Station. Connecting the dots suggests that its inclusion there could translate into massive adoption on earth. Better still, considering that Microsoft picked KULR technology to protect a billion-dollar project with its thermal management solutions, that adoption may come sooner rather than later.
The following clip from CEO Michael Mo's Benzinga conference interview provides reasons for why current share prices may not fairly reflect the value of his assets. There are more reasons he didn't discuss. Growth is one.
Video Link: https://www.youtube.com/embed/Jrcq_ymSBt0
KULR Technology Enjoys Broad Market Expansion; Analysts Notice
Mr. Mo discussed his programs, but his recent earnings report shows that growth is already surging. Moreover, deals already in place with Andretti Technologies, Airbus (OTC: EADSY), NASA, Lockheed Martin (NYSE: LMT), and Leidos show that the company is nowhere near slowing down.
In fact, even without the developing opportunity to penetrate the massive microelectronics market, KULR's tier-one client list alone positions them exceptionally well to have a record-setting year. However, don't ignore the micro consumer products markets. They will come.
To those wondering, analysts are paying attention. And Taglich Brothers is impressed, modeling an implied 70% upside to its current share price by the end of this year.
In its bullish report, Taglich Brothers revised its 12-month share price target higher by 40% to $3.50. Taglich updated its forecast after considering KULR's substantial revenue growth, its growing list of top industry clients, and its tangible proof that its thermal management and heat dissipation technology could capitalize on multiple market opportunities this year. They were highly supportive of revenue growth, forecasting revenues to triple by the end of Q4.
However, some investors are more bullish, especially after watching the CEO interview. He offered compelling reasons as to why current price and revenue targets may be conservative. Particularly, its carbon fiber thermal management solutions included on Mars Rover Perseverance 2020 validates its standing as having a best-in-class solution to protect billion-dollar assets. Even better, the FAA is evaluating its technology for in-flight applications and its effect to mitigate ion-battery malfunctions. A recommendation by the FAA could be a catalyst of enormous proportion. In fact, it could send the stock 10X higher, or more, in a matter of minutes.
And investors would be naive to believe that an FAA endorsement is far from happening. In fact, believe that it IS close with KULR demonstrating irrefutable proof that its technology can substantially reduce the risk of fire and explosion. It also showed what can happen to aircraft using ion batteries without the technology. In short, the results could be catastrophic. And there's more beyond the FAA.
KULR is also working with the Marshall Space Flight Center, evaluating a dual-use opportunity to integrate its technology into 3D-printed battery systems for manned and robotic space applications. And those programs add to working relationships with Leidos and Lockheed Martin to develop hypersonic and directed energy defense applications.
Further, several more projects that show its current $2.05 share price and $193 million market cap substantially undervalue its assets. Here are a few:
Partnerships Driving Value
As noted, KULR recently announced an agreement with Andretti Technologies and its EV racing car subsidiary. The great news is that its thermal management and heat dissipation technology are being recognized as a vital inclusion to mitigate the risk of fire and explosion in batteries. And with Tesla (NASDAQ: TSLA) recently in the news for such an incident in one of its cars, this KULR application is again earning significant attention.
Another deal was discussed. While KULR didn't provide a name when mentioning a potentially enormous transaction, they alluded to a leading supplier of electronic components in smartphones could soon include KULR technology. Imagine the impact that could have on KULR valuations.
Some blog coverage suggests that that snippet has been missed by most investors, causing debate about why the stock didn't surge on the announcement. The reason? It wasn't announced. It's in a recently published investor presentation. Thus, it's available to those willing to do some work. For those that read it, they may be treating themselves to a massive buying opportunity. Again, it's KULR battery safety technology earning the attention.
Speaking of batteries, KULR mentioned deals with Volta Energy and Drako to extend its reach in battery safety technology for grid and stationary energy storage modules and as a supplier partnership for NASA-grade fiber cooling technology. With new regulations being imposed on the battery industry, KULR expects the deal with Volta, in particular, to ramp considerably next quarter.
Other billion-dollar markets are already in play.
The $70 Billion Energy Storage Market Is For Starters
While there is no weak link in the KULR strategy, its core value lies in penetrating the Energy Storage and Thermal Management markets. Not only is the mission timely, but it's also potentially lucrative.
A report by Lux Research pegged the Energy Storage market alone as a more than $59 billion revenue opportunity. However, over the next ten years or so, they expect the market to grow exponentially, reaching an estimated $554 billion revenue-generating opportunity by 2035. Keep in mind, KULR is probably best-positioned than any company to capture the growth, with products in development or already used to serve e-mobility applications, improve electronic device safety, and mitigate fire risks for stationary storage. Thus, KULR becoming the market leader in both name and sales is predictable.
Beyond the Energy Storage markets, KULR is targeting the $8.8 billion market opportunity from the Thermal Management Market (TMM) by creating solutions to meet surging industrial and consumer demand for reliable microelectronics and lithium-ion batteries.
The great news here is that KULR could again have best-in-class assets to deliver, noting its technologies' ability to mitigate fire and explosion in products that use ion batteries. Combining the two markets, which go hand-in-hand, offers a more than $67 billion market opportunity in 2021 and 2022. Beyond that, calculators are needed to calculate the growth. In either case, the revenue-generating opportunities in the two markets present a compelling case for investment in KULR.
Better still, these opportunities can be maximized sooner rather than later. Remember, its passive propagation resistant (PPR) battery design prevents fire and explosion by providing a single cell thermal runaway from exiting the battery enclosure. And with validation from NASA, Airbus, and Andretti, to name a few, KULR's reputation as the "go-to" source for thermal management safety solutions is second to none.
And 2021 could be its time to shine.
A Compelling KULR
KULR is undoubtedly a compelling investment opportunity. Compared to most stocks in its sector, KULR has a list of advantages that run off the page. Better still, they are evolving to even higher levels. In short, KULR has gone from a component supplier to a developer, manufacturer, and licensor for government agencies and the private sector for design and testing services. This transformation is not priced into the stock.
Best of all, KULR can reward investors from multiple sources. They have a robust IP portfolio, a planned near-term uplist to a more senior NASDAQ market, and a balance sheet that was recently complimented by an $6.5 million raise. Put that together, and as noted before, KULR is likely working from its best operating position in history.
And with excellent management, KULR is especially well-positioned to extend its run by creating value from more partnerships this year. And to those that think ion-battery development is a fad, think again. These batteries will be the linchpin to run cars, planes, boats, appliances, and microelectronics. In short, expect a large percentage of humans to carry and use ion batteries at some point during their typical day. And with that use comes the inherent and deadly risks exposed by KULR's video. Thus, KULR offers invaluable, potentially life-saving technology.
The bottom line is this. KULR is a far better company than its share price indicates. Blame it on COVID, inflation, Bitcoin, or the weakness in the overall markets. But don't blame KULR.
They are performing at their highest level ever. Thus, when the markets recover, and the clouds of COVID evaporates, expect KULR to make up ground quickly. And if its $2.64 share price was reasonable in April, expect that number to be the low point a month from now.
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