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Stem Is Not At Its Summit

May 03, 2021 5:02 PM ETStem, Inc. (STEM)48 Comments
Scott Pang profile picture
Scott Pang


  • Stem has not been spared from the recent SPAC bubble, currently down 48.2% from the highs of $49.97 in mid-February.
  • The mutually-beneficial relationship between EVs and battery electrical storage systems enables rapid growth of sustainability and green energy.
  • Stem is at the forefront of the hottest sector in this decade.

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This article was written by

Scott Pang profile picture
Singapore-based investor, researcher of equity markets with core emphasis on identifying and providing in-depth, value based green energy, utilities, healthcare and consumer discretionary (e-commerce) companies for potential swing and mid-term entries.

Analyst’s Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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Comments (48)

CR144 Research profile picture
May 21 Presentation:


No one mentioned earlier Tesla is their competitor ..
Brendan Du profile picture
@CR144 Research Tesla is their partner, not a competitor. Stem's CEO highlighted that in the Cowen conference last week that Stem along with many equipment providers including Tesla are designing the software and hardware solutions together for their clients.
CR144 Research profile picture
Looking at the presentation they will have expected revenues in 2021: $147M.
Is the recent offering impacting the price?
@mmyy101 that was not an offering... those shares are already apart of the merger process. That is not new.
banana.leaf profile picture
@mmyy101 Stem Inc Files For Offering Of Up To 52.11 Million Shares Of Common Stock By The Selling Securityholders - SEC Filing.

The 52 million shares above are not new shares; however, It's all about supply and demand. So if some or all of the 52 million is sold in the open market then it's possible the supply will be more than the demand and thus the price would decrease a bit.
Brilliant piece. Clear, unbiased and insightful with data and content to support thesis.
Chris Lau profile picture
$STEM makes Nikola's truck rolling down a hill look like a a crown achievement.
The business has potential. The stock needs to settle to shake out speculators, first.
This stock is quickly becoming a turd... falling 5%+ everyday.
@Puritain $STEM may not be at its summit, as the author states, but it is rolling down a steep hill. I can't put on enough band-aids to stop the bleeding. Off to setup the IV drip....good luck.
Everyday dropped 6-7% and say the stock is massively undervalue, great analysis!
This is awful! Market dropped it fell harder, market goes up, it drops too!
@Candyman88 Hope you had diamond hands ;)
Another despac spanking, can't wait til my spac merges!
rzinno profile picture
This stock falls every day. Why?
Fell 7 straight days since despac. Where is the bottom?
banana.leaf profile picture
@Candyman88 Yikes, looks like today will be day number 8. I would like to add some in the 17's. Seems a bit oversold to say the least.
STEM - The Nadir before the Summit.
@Invest_2020 Their IR mentioned no conference call for earnings, just a press release. Hoping the numbers speak for themselves ... we need strong guidance in a big way to dig outta this.
rzinno profile picture
@Obo521 when are earnings?
Nice article. The stock could take several quarters to find its footing, but as long as management delivers investors should have confidence to pay up for this pure play.
I don’t understand why the deSPAC process triggers such a severe selloff when investors have visibility into warrant + PIPE terms in advance. You’d think some off this would be offset by institutional investors buying the newly listed name who may not be allowed to invest in SPACs, etc. STEM has been getting slaughtered on no news whatsoever.
Nice hold for future.
Excited about the Stem business model but patience is needed. In the short term they should be viewed as an energy storage VAR. Revenue growth should be on target, but at a low margin. However, each installation includes a long term contract in their management SaaS, so over time their margins should increase due to the Athena revenue stream. I decided today was a good day to open a position. However, we may see them go below $20 in the near term.
I feel a little abused though for the price paid for Star Peak and the price that I received in Stem shares. It would've been nice to get somewhat parity between the two. Hopefully there will be enough 'news' to get some price action for Stem.
banana.leaf profile picture
Nice Article Scott, Thanks.
Good article! Stem's management have highly confidence to deliver 305% Rev. yoy growth for this year based on months ago IPO edge event and 1/25 Investor presentation. Now, I am waiting their 1Q21 earning call to see how analysts questioning their earning prospective and also sell-side initiation report.
What is unique about the company - I am a bit confused is STEM only assembling the end product or are they also producing the batteries ? I feel like every battery producer could sell the same maybe even at a better price. A software like Athena AI that is basically only managing the input/output shouldn’t be hard to develop
@AlphaSierra Athena has 10 years of data collection. It gets smarter the more data it collects, and they are ahead of the game by years. A good AI/machine learning model isn't exactly easy to make.......
bluescorpion0 profile picture
@vuottoj1 how smart does it have to be though? sun up, sun down.
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