Coverage of this wireless charging company’s shares were just initiated at Ascendiant Capital and Roth Capital with a Buy rating.
Energous Corp. (WATT)
from Top Stocks under $10
We are ready to jump back into a stock that did very well for us previously and now is a bargain again after getting unfairly beaten up: Energous Corp. (WATT).
We bought WATT, just shy of $10 a share, and then sold it for a 13% gain. It’s time to grab it up again now that it’s fallen below $8.
The company is in the process of patenting its wireless charging station that can charge multiple devices within 15 feet of its Wi-Fi like router, called WattUp. The industry implications are enormous, for homes, commercial enterprises (think airports, restaurants, libraries, coffee shops) or even in our cars. WATT is the company that is going to make it happen.
This company is not yet bringing in revenue. And I must say the stock is quite volatile, with speculators moving the price up and down on various rumors. But opportunity is rearing its head again, this time on the heels of an authorization that leaves the company the ability to raise $75 million as needed—something that caught shareholders by surprise because the company’s financials showed enough liquidity through the second quarter of 2016.
However, the need for cash at a pivotal point in the company’s existence is bullish for those who can handle volatility. The company could be looking to take its product to main-stream, pending patent approval, and we’ve seen that it keeps announcing ventures in which top-tier tech companies are investing in its WattUp technology to produce and scale the product.
There is downside potential here, but it’s limited, as the company is near its all-time lows. It’s not near those levels because of the validity of the product. The upside? Well, that all depends on how fast it can get through the logistics of finalizing the product. But with all of the potential cash and joint ventures with large-cap tech companies helping it, the odds are in its favor. Oppenheimer and Roth Capital are targeting prices of almost double current levels. Technically, in the near term, I would look for the stock to head up to $9.66, or a 25% rise, without any catalysts emerging.
And the fact that the company is pre-revenue but potentially willing to take on debt, means it must be expecting some source of monies to be coming in over the next 12 months. May 11 is our next big day – that’s when the company reports its quarterly results. For now, I want to take advantage of the pullback and get bargain shares with upside catalysts around the corner.
Mandeep Rai, Top Stocks under $10, published by Money and Markets, a Division of Weiss Research, Inc., www.moneyandmarkets.com/services/trading-services/top-stocks-under-10, issues@e.moneyandmarkets.com; 1-800-291-8545, April 30, 2015
.