The only high margin pure play SAS in this sector is STEM, still nascent (under the radar and cheap) but with 2900 years runtime on their AI, which they claim makes them the market leader. On current run rate for 80M arr software revs eoy '22 and growing circa 50% pa - software revs expected to ever more displace low margin hardware, which they ultimately plan to drop. Batteries will always be low margin commodity, TSLA will see to that, but need software for intelligent operation, which should always remain high margin. Look at the management and board creds and the very cheap financing deal they were able to swing. Thanks for link to your stem article
Great video and sharing most of the concerns you point out. Still a big believer AES and, especially Siemens, can make this a succes long term. Will keep DCA into this company the coming years
Really appreciate you taking the time to share your thoughts Niels! We all have varying tolerances for risk. Hopefully Fluence does well in the years to come. As investors, we're on the same team with the same goal - to generate alpha.
You mean FLNC? It's down 44% since the IPO. Spouting off share prices at random intervals isn't useful. Has the profitability problem been solved? We invest in companies, not stocks.
@@Nanalyze ok cool, I understand now. But wouldn't you be tempted in Fb or similar companies if they drop to really cheap p.e.'s in a recession environment?
@@dannyh1891 We think social media doesn't add value to society so that's a no on FB. As for other tech names, probably not. We've been tech investors for a long time - even investing in Google when they had their IPO. These days, we like to focus more on disruptive tech - because we live and breathe the stuff for a living - and share ARK's opinion that there's real alpha to be generated here. Investing in tomorrow's technologies today is one way to look at it. Note that even though we cover tech only on this channel, the majority of our money is invested in our dividend growth investing strategy - Quantigence. www.nanalyze.com/dividend-growth-investing-strategy/
Hey well done, this was a very useful video. I am curious to hear your thoughts on STEM inc, a Fluence competitor that is focusing on higher margins via SaaS. Would love to see a video on your analysis of them, thanks guys.
Thanks again. I am looking at the most scalable technologies in energy storage to satisfy Giga level gridscale and going back to first principles of the scientific issue, that isn't going to Li-ion or LFP. Iron-air and Iron-Flow batteries (both a form of flow battery) are efficient, abundantly available (and non toxic), they are extremely long lasting (circa 20years service life) and high cycle life over that time with days (100hrs) already demononstrated by Form Energy Inc. (with Iron-Air) in comparison to circa 10 hrs with Li-ion. ESS Tech Inc. are the other company, they are publicly traded specialising in Iron-Salt Water chemistry but have only proven circa 10 to 24hrs. Given their power density value and demand in other crucial applications, mass gridscale deployment would not be the best use of Li-Ion hence logically, companies that can scale efficiently with other economical alternatives will naturally capture significant market share throughout the globe. Would you be able to get your researchers to corroborate my theses here. The levelised costs are extremely competitive to superior. You may even be able to get more from Form Energy Inc. they are very much hush hush. Much appreciated...
Thank you very much for the added color! It's very useful to understand your thesis. We've looked at battery technologies extensively over the years with multiple pieces on flow battery startups. Right now we're only able to cover publicly traded firms that offer grid storage solutions that are growing revenues and scaling. It's a very popular topic so we're always open to hearing about new names coming on the radar that are investable by the public. While we used to do a lot of research into startups, our paying subscribers now drive our focus which largely revolves around publicly traded stocks.
Thank you for the positive feedback! STEM is on our to-do list as well. In the meantime, here's a past piece we did on them: www.nanalyze.com/2022/01/stem-inc-stock-solar-storage/
Hey Omar, welcome! Not sure if you mean subscriber to our channel or subscriber to Nanalyze Premium. We disclose our 35 tech stock portfolio to paying Nanalyze Premium annual subscribers. www.nanalyze.com/become-a-nanalyze-premium-subscriber/
Solid analysis, thanks for sharing! Totally agree with segment margins at 6:35, would've been nice if FLNC disclosed $ values instead of MW metric just to understand Service/Digital contribution
If the information isn't in the video or accompanying research piece then you'll need to look it up. Unless you're a paying subscriber of ours, then we'll look it up for you ;)
@@Nanalyze not mentioned. Also searched and could not find it.did not realise this was an ad. How much do you charge? What is your performance for the past 5 years by year?
@@fairvalueaustralia4881 If you searched the filings and couldn't find that info, it's probably not easy to come across. That's the same place we'd look. You can learn about our performance here (www.nanalyze.com/2021/01/nanalyze-stock-portfolio-performance/) and our pricing here (www.nanalyze.com/become-a-nanalyze-premium-subscriber/). And yes, this entire RU-vid channel is one giant content marketing funnel. ;) These days you can only sell things to people if you show your usefulness first.
