TSXV:LPS - Post Discussion
Post by
Possibleidiot01 on Sep 11, 2024 9:28pm
Discord post
Right now I see Legend Power Systems (LPS.v) as one of the most attractive opportunities in the market. I originally got the investment idea from Cameron but as an engineer I see a lot of value and potential in the business. We often hear the term dirty power where we get electricity from our provider and it's within the standard but the quality is not always the best with voltage fluctuations, waveform distortations, frequency distortions etc. This causes premature failures and loss of efficiency as most electronic devices are designed around the optimal 120v pure sine wave electricty. Here is a whole write up about the issue by Schneider Electric (one of the biggest makers of electrical equipment). https://blog.se.com/infrastructure-and-grid/power-management-metering-monitoring-power-quality/2015/10/29/dirty-power-what-it-is-and-why-you-need-to-clean-it-up/#:~:text=Dirty%20power%20is%20a%20term,excessive%20heat%2C%20or%20premature%20failure LPS essentially goes in, monitors your electricty, comes up with a game plan then adds filters, surge protectors and other such devices to correct the issues. As far as I could find there's only one other company doing this in the world and it's in Australia. This is more of a new issue too. In the olden days a regular old fridge or incandecent light bulb did not care about dirty power. You're ultra advanced washing machine with circuit boards and computers does, your smart fridge cares, computers care, routers, etc. Now we have solar panels and wind turbines tied into the grid that vary power output based on the number of clouds during a particular day or how variable the wind is that cause even more fluctuation combined with massive new loads from data centers, bitcoin miners, electric cars and everything else on aging grid the problem gets worst.
I see the recent contracts with the Department of Defense and City of New York as a inflection point in the stock with good things to come. The people in charge of purchases at these businesses are probably smarter then me and also cheap. If they didn't see the value in it they wouldn't have given them the contract. They have done what few businesses do and that's skip small customers and go straight to multi million dollar orders. Those two orders are 11% of the entire market cap of the company! With the recent dip we've seen no price increase after such an amazing accomplishment.
Before the company focused on just improving efficiency of buildings which was well... not to be mean but a waste of time. Their orders were like $50,000 at a time. They then spent the last few years developping the smart gate system to fix dirty power and have finally built up a reputation and product that is attracting the big players. They've even said if the DoD project goes good they will likely be awarded more buildings to upgrade.
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