Yes, some might be trading lower but you gotta look their valuation. Additionally, look at what other promising EV/EV charging SPACs (SBE, TPGY, NGA, CIIC, CCIV, ACTC, etc.) are trading at and valued now. Also, look at their compelling offerings (energy storage with AI/SaaS leverage) in a rapid growth market ($1.2 trillion thru 2050) and steadily high growth rate (not like slow growth in the first 2 years and then spike 100% in year 3). People need to look at the high visibility into future growth : 100% of 2021 revenue is already contracted with huge backlogs and pipeline going forward. comps), public ownership post-merger, existing management rollover, PIPE, Sponsor strengths, revenue visibility, growth expectations (top line and CF and whether or not they are reasonable), industry/competition, etc. You have to take into account of proforma o/s shares, proforma EV (vs. I’m very confident that STPK will spike this year and even this quarter.Įdit: If people are evaluating a SPAC based on whether or not the share price is close to NAV, they should re-think their analysis on fundamentals. (low float with proforma $135.4 million shares) which is relatively cheap compared to other EV/clean energy SPACs out there.īottom line is that Stem is a disruptive company servicing a rapidly growing market and is poised to thrive under the Biden administration which will aggressively push for transition to clean energy. Stem is valued at under $4 billion at current price pt. Meanwhile, public shareholders will own 28.3% post merger. Stem’s existing shareholders will roll over 100% of their equity post merger (48% performa ownership). $525 million cash will be retained to support future growth with no debt on the b/s post merger. Furthermore, Stem’s 2021 projected revenue is now 100% covered by contracted backlog! Revenue is projected to grow at 51% CAGR thru 2026. Just a month after merger with STPK was announced, Stem already revised the 2020 revenue guidance to be 7.5% to 10% above previous guidance. “The grid is getting decentralized, digitized, decarbonized and democratized,” CEO John Carrington told Barron’s in a recent interview. There is a growing demand for Stem’s technology. As the electricity grid evolves, there will be a need for systems to store and manage solar and wind-generated electricity. Williams Trading analyst Sean Milligan called Stem a “pure play virtual power plant provider with SaaS leverage.”Ī majority of new power installations now come from renewable sources. Stem’s Athena software platform is especially taking energy storage/management to a whole new level with 24 patents already granted covering the software. Many solar installations, for instance, now come with battery storage so they can provide power when the sun isn’t shining. The electricity stored in Stem batteries can be be used to generate electricity on demand-like any other power plant. Instead, Stem’s storage is for utilities. Stem addresses batteries but not for EVs. Energy storage is an important key to the build out of renewable generation and the market represents a $1.2 trillion opportunity through 2050. Stem helps corporate customers lower energy costs, stabilize the grid, and reduce carbon emissions. To summarize, Stem is a leading smart energy storage company that offers one stop solutions of integrated battery storage systems, network integration, and battery optimization via its proprietary AI-driven software platform called Athena.
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