$STEM Stock Investment Thesis
I believe $STEM is undervalued at 1.8billion market cap. I plan to hold the stock 3 years +
Energy Regulations with the massive heat wave that keeps on occurring more and more.
Spain bans offices, bars and shops from setting AC below 80 degrees. As Europeans this summer struggle with extreme heat and rising energy costs, Spain issued a decree this week requiring air conditioning in public spaces be set at or above 27 degrees Celsius (80 degrees Fahrenheit). - CBS News.
Its crazy to think that regulations like this exist. This makes me more and more bullish on solar companies and companies that can make it so you can handle your own electricity and energy. If only there was a company that can handle and store this energy? $STEM
I have known this stock about awhile, remember watching this video as first time getting introduced to it. The whole country is suffering from extreme heat and are facing the consequences from that heat in the form of grid overload resulting in blackouts. Stem Inc has been the solution to this problem. https://www.youtube.com/watch?v=fQ6a1hy5vkM&ab_channel=MEETJEREMY
First pure play smart energy storage company to go public in the US.
A Massive addressable market growing 25x to $1.2 trillion by 2050.
The Largest smart storage network in the world with best-in-class technology.
Strong and highly visible growth through long-term software contracts.
Stem works with large enterprise customers and mid-sized commercial and industrial businesses to identify energy savings opportunities and enhance sustainability strategies. Stem’s solution is rooted in more than a decade of market leadership and the unparalleled capabilities of our Athena smart energy software.
An increase in energy demand during heat waves can create significant stress on the electrical grid. Stem’s Athena® intelligent software automatically operates energy storage systems to reduce customers’ energy costs and instantly responds to signals received from the grid operators to dispatch available capacity when and where it is urgently needed. This helps to stabilize the grid by flattening electricity usage peaks and delivering power to the most constrained parts of the grid. Athena® co-optimizes the value of flexible energy in real time, incorporating dynamic conditions such as energy prices, local grid capacity constraints, tariff-based program events and severe weather conditions. The Company’s technology provides fast-response and backup power while reducing greenhouse gas (GHG) emissions and reliance on diesel generators and fossil fuels.
August 02, 2022
8:35 am ET
Last 5 quarters of revenue growth: / Market Cap 1.8B (Check my recent post on 2nd quarter results)
Market cap is extremely low for this software company and I believe it can easily get to 25B in the future.
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