On September 22nd/23rd there was a fairly large sell off that led to a significant price drop that has continued to drop; at least until yesterday. That comes on the heels of a positive revenue financial release (See below). One must wonder if someone dumped a bunch of stock at once to take advantage of the little bleep and then push the stock market down. Why is it continuing to decline and when might it end? What I'm looking for is how a company like this (not saying this company) could work in tandem with other companies to reach innovative milestones.
Q4’21 revenue grew 33% to $8.3M compared to Q4’20 revenue of $6.3MFY’21 revenue increased 56% to $26.3M vs FY’20 revenue of $16.8M
Q4’21 gross margin increased to 21.0% compared to 17.5% in Q4’20
FY’21 gross margin improved to 22.1% vs FY’20 gross margin of 13.0%
The report also went into discussion on how they paid off of their debts and converted $5.2 million debt to equity. Flux also added more institutional investors as well as some interesting customers under "autonomous electric shuttle vehicles", a large meat processor, paper product, and chemicals manufacturer. Still no real indicators of why? (Lets not get frustrated....if it was all that easy we would all be rich. LOL)
Refreshing my memory I went out and reviewed literature on ways to evaluate stocks and came across the article, 'How to Research Stocks' by Mathew Frankel. Pretty good stuff. You may also want to read about 'Angel Investing: What Experienced Investors Wish They Knew When They Started' by Miruna Girtu. My goal is to sort of look at evaluating stocks and how investors might infuse capital into clustered companies when they work in conjunction with other companies up and down the innovative supply chain to create more wealth from everyone (Don't forget that there are many transactions that lead to a business success. Having more in one place to create something new might have high value as its adapted throughout the rest of the manufacturing-supply chain. What I'm saying is that companies can work competively in tandem with other companies in their own best interest to create more solutions for society while at the same time maximizing ROI. Laser focused capitalism...See Theory of Firm.).
(Note: I'm working on some cluster research and I want to determine how to not only select companies for growth to add to a cluster to achieve innovative development but also how to map that cluster's internal development through transactions and company financial information that leads to wealth of participating companies. Transactional Subfactor DC. We select companies by their existing strengths and put them with other companies to solve problems thereby increasing both innovation and wealth for interested stakeholders. i.e. making being involved in a cluster as lucrative for investors. I'm just playing around with the idea but you can read MultiClusters in Delta County Michigan Model Example, SME Venture Capitalism DC, DC Market Emergence, DC R&D Firms, HQ Attract DC, Start Up Firms DC)
The author basically breaks down market research into fundamental (long-term stock fundamentals) and technical analysis (short term stock fluctuations.) What we also find is that there are a couple of suggestions of what to look for in terms of the numbers (I'm applying Flux to a couple of them.):
| EBITDA Margin | -50.29% |
| Net Profit Margin | -48.72% |
Generally means its not profitable.
| Return on Inves. Capital | -182.11% |
Generally means investment capital is not returned.
Ok ok...it looks terrible but is that the whole story?
What we find from the September 27th Earnings Call is that they are scaling up for bigger clients and some of the expenses are related to increasing capacity. When we delve into that further we can see the company is investing in its capacity, has a few patents and would like to offer a larger version of lithium battery packs to ports of entry (i.e. hard infrastructure and warehousing). Some of the batteries will be used in autonomous vehicles/robotics thereby likely developing technologies interested in by auto, military, manufacturing, and aerospace.(This is just batteries but you can see my point.). So the numbers above may not be fully accurate and when the stock dumped it seemed to have dumped further on animal spirits (No idea...want to be a fly on the wall.).
Now what?
Well we find that the company is a start up since 2009 and has established itself in parts of the industry. It is within a growing trend and many of their products are likely to gain more attention. Revenue is increasing along with expenses which indicates a process of development. I bought my at $7.5, $6.3 and $5.9 and the price is currently $5.08 meaning I'm 19.33% down. I guess I'm no stock guru.....but lets wait a minute and see what will happen. There are cash flow issues but a solid base so might be ripe for institutional investment. I didn't buy much, just enough to watch, and want to see if there is a bottom and what behaviors occur thereafter. I think the company has some strong fundamentals and is in the right market but might be in the process of focusing on a bigger market leading to miscued imperfect numbers. Its average stock price is about $5 ish over the past few years which is a type of mental benchmark for solvent bottom. Analysts say one for moderate buy and the other for negative. So its sort of in the right market but in the wishy wash place (Do not listen to me on stocks....I'm actually looking for verification of another idea for pack investing clusters.).
Description from Flux
Flux Power designs, develops, manufactures, and sells advanced rechargeable lithium-ion energy storage solutions for lift trucks and other industrial equipment including airport ground support equipment (GSE), energy storage for solar applications, and industrial robotic applications. Flux Power’s LiFT Packs, including the proprietary battery management system (BMS), provide customers with a better performing, more environmentally friendly, and lower total cost alternative, in many instances, to traditional lead acid and propane-based solutions.
Sidenote: If you watch various stock/financial points within a structure can you see how that structure is changing? ....hypothetically you could map the structure and the supply chain to see which areas are growing and which areas are shrinking leading to better government fiscal management as well as increasingly accurate policy making. Need semiconductors or Autonomous military/civilian vehicles? put together the R&D people of necessary companies and let them focus on a shared projects, create patents, and innovate their sectors. A cluster can be created around anything as long as the location, resources, infrastructure, labor, etc... are available and/or be developed. Delta County Michigan has some advantages as a potential start-up innovation location. Furthermore in a cluster system if you were to map the stock, transactions, patents, people movements, etc.. could you have a better sense of how to optimize a cluster for maximum innovative performance (as well as scalability to other locations). That would require companies moving into a cluster to be open to cluster research and access to related documents.
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