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KULR Technology Group Stock Surges 61% YTD; Special Permit News Shows It’s Battery Safety Solutions Can Be an Industry Game-Changer

KULR Technology Group (NYSE-American: KULR) stock showed its ability to rip higher, surging 65% in the pre-market last week after announcing it received its second special permit from the US Department of Transportation to transport prototype lithium cells and batteries aboard cargo aircraft. While the stock gave back some of its gains, it still showed that KULR is coiled and ready to move higher. 

And although weak small-cap markets may have eroded some of that gain, it still allowed investors to see the investment opportunity at current levels. It may have also exposed them to the reality of KULR- this company is in hyper-growth mode. And while its 439% increase in comparative Q1 revenues are impressive, deals made in Q1 and Q2 position the company to do even better in the back half of this year. Better still, combining investments made to advance its diversified operations, its completed $6.5 million capital raise, and uplist to the NYSE-American exchange, KULR appears to be in its best operating position ever to maximize growth. And while Q1 was busy, KULR has been highly productive this quarter as well.

In fact, efforts from the continued development of its battery safety technology were well rewarded, earning its third patent covering its Thermal Runway Shield (TRS) technology. That patent protects its passive propagation resistant solution, which has been designed, tested, and shown to reduce the hazardous risks associated with thermal runaway in lithium-ion battery packs. Already, its TRS product is used by NASA to transport to and store batteries aboard the International Space Station.

And while NASA provides validation for its technology, from a competitive perspective, the new patent expands the comprehensiveness of its battery safety technology covering disastrous battery failures. The more excellent news is that it may also put KULR in a position to soon dominate the battery safety sector.

Thus, while KULR stock is higher by more than 14% in June and 61% YTD, the current quarter, and more importantly, the back half of 2021, could drive even bigger gains. 

Valuable Special DOT Transport Permits

In fact, two special permits from the US Department of Transportation awarded this month could put KULR in an excellent position to capitalize on a new source of revenue from its permission to transport lithium-ion and metal batteries for recycling. Don't underestimate the potential from this allowance. 

Powering everything from lawnmowers to power tools, lithium-ion battery use is surging. But, more importantly for KULR and its shareholders, so have the needs for proper disposal. And while the revenue-generating potential in that market can be substantial, keep in mind that it adds to the momentum already in place. In fact, KULR reported its massive Q1 growth before the permits being issued. Therefore, it's reasonable to expect revenues to increase from leveraging their value.

Better still, there's plenty more happening to support growth. And although weakness in the small and micro-cap markets often pull even great stocks lower, it also exposes compelling investment opportunities. In fact, despite KULR trading higher by 61% YTD, its intraday spike to $3.19 last Thursday shows there is still plenty of room to run.

Remember, KULR's impressive Q1 revenue gains came ahead of its strengthened balance sheet, enhanced operating facility, and news of its new smart battery product targeting the $127 billion commercial drone market.

Thus, combining everything we know today, KULR is well-positioned to deliver potentially exponential revenue increases in the coming quarters. Moreover, several initiatives are helping to keep investor bias decidedly bullish.

Staying Focused On Substantial Opportunities

While the recent permit news may spark a new line of near-term revenue creation, KULR's focus on the long term hasn't wavered. In fact, the $6.5 million raised last month is expected to accelerate both near and long-term development initiatives. 

Of course, KULR needs to have the infrastructure to meet the demand. The great news is that they do. An important takeaway from its Q1 report is that KULR is well-capitalized to accelerate growth in its diversified commercialization strategy. And beyond having the capital to expand operations, a new facility that is roughly 4X larger than its current location allows KULR to significantly expand bookings and client engagements. Of course, by maximizing its capacity, revenue growth logically follows. Best of all, KULR's ability to meet increasing demand is timely. 

In fact, as the official thermal management and battery safety technical partner for Andretti Technologies, the advanced technology arm of Andretti Autosport, KULR may already be tapping into that additional capacity. In that deal, KULR is establishing a thermal management testing and design platform to provide high-performance, specially adapted battery solutions to meet the rigorous technical requirements of Andretti's global racing enterprise. Even better, beyond the specifics for Andretti Technologies, KULR announced that the partnership is also focusing on co-developing and co-marketing battery and safety technologies to automotive partners for mass-market EV applications. And with General Motors (NYSE: GM) announcing a $35 billion investment toward EV and autonomous car production, targeting those opportunities could present a lucrative proposition. 

Still, while the EV battery safety markets could quickly drive valuations higher, KULR is doing far more. They are also targeting massive aerospace applications for thermal management and heat dissipation solutions. 

There, KULR may already be one of the best-positioned companies to earn substantial business from public and private space programs. In fact, its carbon fiber thermal management solutions are already included on Mars Rover Perseverance 2020, validating its standing as having a best-in-class solution to protect billion-dollar assets. 

Of course, KULR is doing well on earth as well.

The FAA Is Taking A Look

Back on earth, KULR said the FAA is evaluating its technology for in-flight applications and its effect to mitigate ion-battery malfunctions. Indeed, a recommendation by the FAA could be a catalyst of enormous proportion. And after watching videos showing irrefutable proof that its technology can substantially reduce the risk of fire and explosion, don't be surprised to see the FAA take action on the matter sooner rather than later. But, there's still more to know.

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. Also in play are programs with Leidos and Lockheed Martin to develop hypersonic and directed energy defense applications. Unquestionably, KULR has its technology in several markets. But one of the biggest could be the microelectronics sector, where they are already earning significant attention.

In fact, Microsoft (NASDAQ: MSFT) is already a customer, including KULR solutions in its Surface Pro aboard the International Space Station. The reading between the lines segment here is that MSFT understands the importance of including its technology to protect the ISS. Thus, if it is validated to shield the ISS, it certainly merits the attention to save lives on earth.

Further, it bodes well for business that Microsoft chose KULR's thermal management solutions to protect a billion-dollar asset. In fact, it can lead to potentially huge deals in the microelectronics sector.

KULR Is Not Slowing Down

The most excellent news for investors is that KULR is far from slowing down. And while its deals with Andretti Technologies, Airbus (OTC: EADSY), NASA, Lockheed Martin (NYSE: LMT), and Leidos are impressive, KULR guidance made it clear the company is far from peaking.

That could be why analysts at Taglich Brothers model for a 52% upside to its current share price by the end of this year. They see what others see- substantial revenue growth, a growing list of top-tier clients, and its patented proof that its thermal management and heat dissipation technology could dominate respective markets as early as this year. Notably, Taglich also expects revenues to triple by the end of Q4. 

Thus, with cash, assets, patents, and billion-dollar shots on goal, what's not to like about this company. And, if you think partnerships are missing from the equation, check this out.

Partnerships That Can Drive Growth

For sure, KULR isn't lacking on the client partnership side of the business, either. Beyond its deals with Andretti Technologies and its EV racing car subsidiary, KULR has agreements with Volta Energy and Drako to extend its reach in battery safety technology for grid and stationary energy storage modules. KULR guided that the deal with Volta could ramp considerably next quarter. With Q2 nearing its close, an update could be imminent. 

Another potential deal referenced in its investor presentation could be a substantial revenue-generating wild card. Although KULR didn't provide a name, they alluded to a potentially massive agreement with a leading supplier of electronic components in smartphones. Those that watched videos of exploding phones understand the interest. The best part of that potential deal is that it could put KULR technology into hundreds of millions of consumer products, including phones, over the next several years. Guesses how a deal like that would impact revenues can be wide-ranging. But anything less than exponentially might be conservative.

KULR Is Compelling at These Levels

Indeed, KULR, from any angle, is a compelling investment opportunity. In fact, its 65% surge last week showed that buyers are already paying attention. Thus, the value disconnect today could easily close tomorrow. And with KULR expected to deliver several updates in the coming days and weeks, that's a possibility.

Remember, too, KULR is positioned to maximize its potential from multiple sources. Moreover, they have intrinsic value from its robust IP portfolio, a secured listing to the NYSE American exchange, and a balance sheet strengthened by its recent $8 million raise. Hence, it's hard to argue that KULR is not positioned for maximum growth.  

Thus, taking advantage of prices ahead of expected near-term news may be a wise choice.

 

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