Post by
ridethewinners on Apr 06, 2022 10:04am
How do you pay for it and who do you sell to??
I am still long the stock, added more a few weeks ago, but battery day was not the reason. One of the Buffet rules is never invest for an event, and I think that has been validated here again.
There seems to be no doubt graphene adds performance to batteries, there are a lot of other companies in the space, and enough technical data out there that this is no surprise at all. See the specs published by CMG in Australia, validated through the university for confirmation. It works on the lab bench.
What battery day did not do was talk about how a new plant will be paid for, who the customers are or might be. Again no suprise there, it just seems they are not that far along yet. The market may be worried about the cost of capital in a rising interest rate environment, the risk to owners if they build it without serious orders, and how long all this will actually take. Until SN can clarify those things, which are likely not in his control yet, there is an added level of risk.
It also seems that the pace of adoption by other customers has been slower than the market likes. Shareholders have been told of the large number of potential customers who are looking at Graphene Black, trying it out, considering adding it to the processes they use, but I think actually getting to the mass production line is far harder than it looks. The Montreal plant is still more than adequate to service the actual the demand GRA has, with capacity to spare. SN is forecasting larger demand over the next 4 quarters but this market is in a show me the revenue phase, especially as there are so many other players trying to get into the game, for such a variety of uses. Graphene is still perceived to be in the "high school chemistry experiment stage" until someone actually gets the revenue jump.
This is a long shot, as it has always been, but I like the way SN is building the business, being cautious instead of promotional, but patience is going to be needed for a while yet.
Best of luck