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KULR Stock Stays Bullish Despite Broader Market Weakness, Shares Touch Multi-Month Highs After Accretive Updates ($KULR)
KULR Technology (NYSE: KULR) stock is a bright spot in an otherwise weak market. Shares continue to trade higher after KULR provided a series of updates expected to be accretive to near and long-term growth. In October, those updates sent KULR shares higher by over 98% on an intra-month basis. More importantly, they are holding the lion's share of that increase despite another bear attack on small-cap stocks. Perhaps the best news from a technical perspective is that KULR shares appear poised to continue their bullish trend and hold higher levels not seen since April.
That presumption is warranted. Updates indicate that KULR remains committed to increasing shareholder value sooner than later and has earned a consistent flow of new and add-on contracts adding to record-setting revenue reports during the past few quarters. Most recently, the company announced that it is hosting a meeting of the Society of Aerospace Engineers ("SAE") G-27 Lithium Battery Packaging Performance Committee in San Diego during the week of November 8th. There, KULR will showcase its suite of battery safety Solutions, including SafeCase, a reusable, safe, and high-energy battery transportation and storage solution already meeting aviation regulations regarding the transport of lithium-ion batteries.
While that conference should attract industry attention, KULR should benefit further from other news, including its development work with the Andretti Racing team, the inclusion of the No. 98 KULR Technology Honda for the 2023 Indianapolis 500®, and several follow-on contracts from global business giants that continue to validate its specialized products with its growing arsenal. Those announcements helped start the rally.
But also in play is KULR's earnings conference call on November 9th. The speculation is that earnings won't disappoint, and, instead, add to the prior record-setting performances. Forward-looking commentary will also help shape the narrative that 2023 is set up to be a breakout year for the company.
A Streak Of Product And Technology Validation
If the outlook stays positive, which is expected based on recent updates, KULR's run should continue despite broader market pressures. Keep in mind that KULR is already better positioned for growth today than at any time in its history. So, added revenue-generating optimism driven by new products, developing technologies, and extension into new market opportunities that present billion-dollar revenue-generating shots on goals would likely add fuel to the bullish investor sentiment.
In the spotlight is KULR SafeCase technology, a reusable, safe, high-energy battery transportation and storage solution. KULR announced receiving a production prototype order last month from a client who KULR described as a "top-tier power tool manufacturer" that is a leading manufacturer in sustainability and safety within the industrial tool and household hardware sectors. Also important to KULR's revenue-generating interests, they are said to be active in lithium-ion battery safety, transportation, education, and recycling initiatives.
That deal, like its one made in the metaverse space with another unnamed "global business leader," is the type that could lead to substantial add-on contracts. That's because clients aren't coming to KULR out of convenience; they are coming out of necessity, with KULR battery-safety technology continuing to prove it's a best-in-class, best-in-industry solution to protect company assets and programs. Moreover, because KULR technology could provide client companies means to gain competitive advantages from its proprietary technology, it puts potentially millions of products in play.
Remember, anything using lithium-ion battery power needs safety integration, and that means everything from toys to power tools to space stations need what KULR sells.
Added Value From Contracts And Partnerships
Of course, investors want to see higher revenues. And KULR is creating new pathways to generate more of it. As noted, its SafeCase technology solution is a current focus. And is attracting multi-level interest from its unique ability to allow KULR and its partners to leverage special permits from the U.S. Department of Transportation for the safe shipping of lithium-ion batteries up to 2.5 kilowatt-hours. Incidentally, with SafeCase being the only known product providing standard and customized case sizes while incorporating a reusable, sustainable, and cost-effective design, the competitive landscape could be thin.
More than a better design can keep it that way. From a functional standpoint, SafeCase provides cost-effective warehouse storage for fire safety and transportation. It also meets specific needs in the commercial lithium-ion battery markets, including providing safety technologies for products using powerful, densely packed lithium-ion power. That includes protecting everything from consumer products to large-scale industrial applications and everything in between. More than putting multiple market sales opportunities in play, it diversifies KULR's near-term opportunities and strengthens its long-term ones.
Keep this in mind, too, when appraising KULR's potential. Its patented technology makes them the only known company in the world with a product approved by the DoT for storage and transport of lithium-ion batteries managing up to a capacity of 2.5 kWh for recycled, prototype, and damaged, defective, and recalled batteries. That distinction and advantage should not be under-appreciated or undervalued because it immediately puts multiple sector opportunities in KULR's business crosshairs.
Add-On Contracts From Global Business Leaders
But remember, the DoT opportunity is a small part of that technology reach. Ongoing work with the Andretti team is also opening revenue-generating opportunities in the EV sector, with its SafeCase and energy management platform a seamless fit to provide battery safety applications on the consumer side of those markets. Those needing battery-safety solutions include the prominent sector giants like Tesla (NYSE: TSLA), smaller players like Rivian (NASDAQ: RIVN), and every other company needing lithium-ion technology to power their products. Here's the exciting part of that opportunity; these industries may have no choice but to integrate robust battery-safety technologies.
With tens of millions of batteries needed and used annually to power not only the EV sector, but also many others, the focus has intensified on how to help mitigate potentially catastrophic battery-related events. In fact, speculation is growing that mandates could be enacted to protect users in both consumer and industrial markets. In the case of battery safety, especially with the massive power encapsulated in small housings, those protections are warranted. And with lithium-ion batteries the critical ingredient to power phones, automobiles, tools, and even trips to space, there's plenty supporting safety advocates' case for having safety measures embedded as part of product development.
If that's the end result, the excellent news for KULR is that they are probably the best-positioned company to capitalize on the opportunity. And that would deliver to them a battery safety and global energy storage solutions market expected to reach $554 billion by 2035. But it's not likely the dollar opportunity stops there. Worldwide interest in green-energy solutions could make an already hot market opportunity scorching. And that could further incentivize the KULR bulls to bid shares higher.
Multiple Shots On Revenue-Generating Goals
Still, everything in play aren't only forward-looking propositions. KULR's revenue-generating mission is already generating results, with its suite of innovative technology providing essential thermal management and safety system technologies to just about any sector in business using lithium-ion power. That includes government agencies like NASA and the U.S. Department of Defense, two agencies already on KULR's client list. But that list also includes global business giants, including Lockheed Martin (NYSE: LMT), speculation about Meta (NASDAQ: META) being one for its Metaverse interests, and Leidos (NASDAQ: LDOS), to name a few.
They are choosing to work with KULR for good reasons. Foremost is KULR's ability to serve client-specific needs through its highly configurable thermal interface materials. Especially its lightweight heat exchangers and monitoring systems that help to ensure that lithium-ion batteries and the machinery they power can operate efficiently while minimizing the risk of overheating or explosions. Additional market applications noted include KULR's technologies providing a means for the safe transportation and compliant disposal of potentially millions of lithium-ion batteries, putting enormous revenue in play for that service alone.
But that opportunity doesn't stand alone. Other value drivers include some that are out of this world, with NASA using KULR's technologies to transport and store laptop batteries on the International Space Station. KULR helps protect those billion-dollar assets with its Thermal Runaway Shield (TRS) technology that effectively prevents battery explosions by protecting against the scorching heat encountered during its deployment to space. NASA has also utilized KULR's carbon fiber thermal management technologies in the Mars Perseverance Rover and their 2017 NICER mission to mitigate the risk of excessive cooling. Earning the repeat business of NASA to protect multi-billion dollar assets is a testament to the importance and efficiency of KULR's technologies. There's more supporting the KULR value proposition.
Acquisitions are adding immediate value.
Accretive Acquisitions Continue
KULR recently announced acquiring VibeTech and the subsequent launch of KULR VIBE. KULR VIBE is an AI-driven vibration reduction solution that addresses energy loss from excessive machinery vibration. Excessive vibration is a plague to modern advanced machinery that not only results in the diminished efficiency and lifespan of the asset but can also increase the risk of operator injury. Utilizing a vast database of vibration signatures, the KULR VIBE suite of technologies uses proprietary sensor processes and state-of-the-art learning algorithms to improve machinery balance and forecast component failure. Its AI learning algorithms can locate areas where excessive vibrations cause energy loss, potentially preventing performance and maintenance issues before they become dangerous.
This innovative VIBE technology can meet customers' demands across motorsports, aviation, transportation, renewable energy (wind), and manufacturing sectors. It also serves industrial, performance racing, and autonomous aerial (drone) applications with precise balancing solutions by successfully pinpointing areas where excess vibrations cause a loss of energy that can lead to system malfunctions, weakened performance, and maintenance issues. In other words, businesses across the global spectrum in multiple sectors need KULR products. And they are earning quite a bit.
Global business behemoth Lockheed Martin just upped their order from KULR for its Phase Change Materials (PCM) heat sink technology. This carbon fiber-infused heat sink technology uses PCM to either provide or absorb heat, extending the life of crucial components used by Lockheed Martin. Validation is ongoing, but if all goes well, speculation is that the next contract with LMT could be massive.
Another is with Volta Energy Products, a subsidiary of Viridi Parente Inc., calling for a multi-million-dollar deployment order of KULR's Passive Propagation Resistant solution suite over three years. Notably, Volta raised $95 million to support the creation of "fail-safe" lithium-ion battery technology and plans to market 750 to 1,000 battery storage units in 2022 using KULR's technology. The companies note, however, that this number could increase to 50,000 units by the end of 2023. If so, KULR could score revenues of $40 million during the agreement period, and if pricing power stays constant, KULR could generate revenues as high as $80 million.
The combination of near-term revenue-generating opportunities isn't going unnoticed. Litchfield Hills Research analysts forecast that KULR's share price could reach $7 during 2023. Considering that more deals have been done since that bullish model provided that target, it could be conservative.
A Compelling And Timely Investment Consideration
Most simply stated, the KULR value proposition, even after its recent run, may be too compelling to ignore. That's not an overly bullish sentiment, either. Over the past quarters, KULR has expanded its business presence to include revenue-generating opportunities in the drone, maritime safety applications, enterprise energy storage, and crypto-mining applications sectors. More importantly, each of those needs energy storage and thermal management solutions. While any of those markets present value singularly, it's the combined potential that investors should be appraising.
Thus, the KULR value proposition is worthy of immediate attention, and whether viewed from an operational or corporate perspective, the case for investment is compelling. Its balance sheet is impressive, they are capitalizing on sales opportunities in multiple high-dollar markets, and are already selling to a global market needing best-in-industry battery safety solutions. Plus, they continue to score deals with some of the world's most prestigious agencies and companies.
That's a testament to how vital KULR technology can be for clients. But more than that, it supports the case that KULR may be the most perfectly positioned battery safety solutions company to target a multiple mass market need. And that should certainly put an actionable idea into investors' heads- seize the opportunity.
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