Jonathan Knowles
I am resuming my coverage on Solid Power, Inc. (NASDAQ:SLDP), after my last thesis turned out just as I expected.
Here is an excerpt from my last article:
I believe Solid Power's share price will likely drop
Solid Power: A Solid Speculative Bet
Summary
- I’m upgrading Solid Power to a speculative buy and have initiated a small position, about 6% of my portfolio.
- The completion of Solid Power’s SP2 line by mid-2026 will double electrolyte capacity, although the CEO doesn't expect meaningful commercial revenue until the end of the decade.
- To my surprise, funds have increased their positions in the company in the last quarter, despite the selloff in the broader markets.
- The company has a liquidity of $300 million. Even after the CapEx for the expansion at the SP2 site, I estimate a cash runway of 4 years.
- With the $20 million partnership with SK On, the $50 DoE grant, and potential new customers in the sampling phase, I see Solid Power well positioned in the mid term.
Small deep value individual investor, with a modest private investment portfolio, split approx. 50%-50% between shares and call options. I have a B.Sc. in aeronautical engineering and over 6 years of experience as an engineering consultant in the aerospace sector. The latter statement is not relevant in any way whatsoever to my investment style, but I thought to add it for self-indulgent purposes. I have a contrarian investment style, highly risky, and often dealing with illiquid options. How illiquid? Well, you can land a Jumbo on the spread and still have clearance for take-off. From time to time, I buy shares, mostly to not be categorized as a degen by my fellow investor friends, therefore the 50%-50% allocation. My timeframe tends to be between 3-24 months.I like stocks that have experienced a recent sell-off due to non-recurrent events, particularly when insiders are buying shares at the new lower price. This is how I often screen through thousands of stocks, mainly in the US, although I may own shares in banana republics. I use fundamental analysis to check the health of companies that pass through my screening process, their leverage, and then compare their financial ratios with the sector, and industry median and average. I also do professional background checks of each insider who purchased shares after the recent sell-off. I use technical analysis to optimize the entry and exit points of my positions. I mainly use multicolor lines for support and resistance levels on weekly charts. From time to time I draw trend lines, taken for granted, in multicolor patterns. Note: I tried to keep my introduction as real, and authentic as possible. I dislike empty suits, high-level BS, deep-level BS, unnecessary jargon, and self-indulgent, third-person written introductions with an air of superiority.Thanks for reading my introduction!
Analyst’s Disclosure:I/we have a beneficial long position in the shares of SLDP either through stock ownership, options, or other derivatives. 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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