Our Stock of the Week is NeoVolta (NEOV). NeoVolta designs, develops, and manufactures energy storage systems (ESS) — primarily for residential solar applications in the U.S. Their products allow homeowners with solar panels to store electricity (from solar or the grid when cheaper) and then use it later (at night, during an outage, or when rates are high) rather than relying solely on real-time grid power. They emphasise safety and modern battery chemistry, particularly lithium-iron-phosphate (LFP), which is less prone to overheating/fire risk than older lithium-ion types.
NEOV competes against Tesla’s (TSLA) Powerwall technology but has a number of strategic advantages, including a safer battery, a longer cycle life, and a lower price.
What is most interesting about NEOV is that they are just starting to ramp up sales. The company announced that it expects $6.5 million in sales in the September quarter, versus just $600,000 in the same quarter last year and $4.8 million in the June quarter.
NEOV recently bought the assets of Neubau Energy, which has a manufacturing base in Austria and helps deal with issues related to tariffs. Developed a next-generation residential battery storage architecture described as “the first truly modular residential battery system” with high energy density. Their system integrates batteries, an inverter, a battery-management system, and communications into a single module, which is marketed as installable by “one person in under 30 minutes.”
This is a very small company and doesn’t have any major analyst coverage. What is most apparent is that they are ramping up very aggressively and should see very strong revenue growth.
The stock is thinly traded, which causes a high level of volatility. The recent pullback after a strong earnings report reflects inefficient pricing.
NEOV will be reporting earnings later in November, and with revenues already preannounced, that reduces risk.
We are holding a position and will aggressively trade it as it develops.
This post is for educational purposes only! This is not advice or a recommendation. We do not give investment advice. Do not act on this post. Do not buy, sell, or trade the stocks mentioned herein. We WILL actively trade this stock differently than discussed herein. We will sell into strength and buy or sell at any time for any reason. We will actively trade into any unusual activity. At the time of this post, principals, employees, and affiliates of Shark Investing, Inc. and/or principals, clients, employees, and affiliates of Hammerhead Financial Strategies, LLC, directly or indirectly, controlled investment and/or trading accounts containing positions in NEOV. To accommodate the objectives of these investing and/or trading accounts, the trading in these shares will be contrary to and/or inconsistent with the information contained in this posting.
