Solid Power: A Long And Winding Road For Investors (Archive)

This 5-Minute Pitch was originally published on Seeking Alpha before the launch of the Hunting Alphas website. It is shared here to showcase my previous work and track record. New 5-Minute Pitches published on this site will not be disseminated anywhere else.

Elevator Pitch

• Solid Power's stock has underperformed since my last 'Buy' update, lagging the S&P 500 by 26.52%. I believe it is a tough stock to hold for investors looking to maximize IRR.
• Revenue guidance for FY24 has been downgraded due to execution hiccups in electrolyte production and solid-state battery design efforts.
• Electrolyte trials are expected to continue for the balance of FY24. And automotive qualification progress is also occurring at a much more glacial pace than what I'd expected.
• The stock trades at a 29% discount to balance sheet liquidity, but the lack of a sustainable business model, ongoing FCF burn and buybacks pose risks to investors.
• Technically, SLDP stock seems poised for continued underperformance vs. the S&P 500.

Read the full article here.