⚡ The future of energy storage?

Have you heard of the duck curve? [Image] Have you heard of the duck curve? It looks something like this… [uJC2fQQG4cO4CEIGPfIHtkqDB4-zWA_3E7ClGI7l8Uo2Mf7-qcWqDIgyzwz3huVNamg06YIZRZSO0PrcNy8hgbtSXfYuqL9_xk9nxYaLoyr6C42IVeX86GL7JQeVg1wkF3kjk-uAVmGZlXjhAsU_E8E] This curve shows the net load on the energy system throughout the day when we think about solar. Solar energy peaks midday and disappears at night. Conversely, we flip on the lights, heat our homes, and keep moving while it’s dark outside. Renewable energy is use it or lose it…that is unless you store it. Yet, we haven’t quite found the ‘holy grail’ of energy storage. But maybe incremental progress is what it takes. That’s what Dragonfly Energy Holdings (NASDAQ: DFLI) is hoping. This tiny NASDAQ stock focuses on the RV and off-grid markets. Over the last six months, this SPAC had two epic squeezes. And a third one might just be around the corner. Dragonfly Energy Holdings Corp. (NASDAQ: DFLI) - 1-month trading range: $2.54 - $5.00 - Typical average daily volume: ~160,000 - Float: 9.3 million shares Dragonfly’s Business Dragonfly views itself as a leader in the green energy storage industry through its Lithium-ion battery products in the RV and Marine industries. It focuses on the development and production of deep-cyle, non-flammable batteries. What’s really got folks interested is the company’s patented non-flammable solid state battery technology. Most batteries we use today deal with liquids. Solid-state batteries have a higher theoretical energy density, faster charge times, and would be much safer. Dragonfly has dedicated more than ten years to research and development and holds over 45 field and pending patents. The company has three brands under its umbrella. They include Battle Born Batteries, Dragonfly Energy, and Wakespeed. It offers a full line of LiFePO4 batters for 12-volt, 24-volt, and 48-volt systems. [kWh9zD_MiJSfDn9ZHcDHBzx-jQFga36-BBZ3o1LD6gbGqB6LDtYqYkgEbfcp_113N6GvPvSBP6Dn1bACA8vnosKps-jCTmc1SOhGxmFqb5Simzfr77deZ2IN3nBI293F4XSzbiVEh84Pz7A10DMQxWA] Source: Dragon Fly Energy The company sold 95,949 batteries in 2022, an increase of 28.6% from 2021. [yKYiV49MtntJtEzkyjc-RK0kilhYtPojKu5HcIdqBs7OrW-xu_FBczjYrexHsaMEcvk7dRA56jjfAEqR8KlhL2Tv3uOvqDlMzy6MeTT_MqXIIS9uLokl-NsCfmW7_jHHq4xaSxmOohNnktwcjN8rdZU] Source:[Dragonfly Investor Presentation]( Earlier this year, it launched Dragonfly IntelLigence. A technology that will provide Battle Born Batteries with reliable communication capabilities via unique mesh network connectivity, enabling accurate remote monitoring for entire lithium battery banks via the Dragonfly Energy Mobile App. One of the big problems that Dragonfly Energy is trying to solve is lead pollution. It’s reported that 85% of the total global lead consumption is for producing lead-acid batteries. Nearly 1 million people die from lead exposure. Dragonfly produces environmentally friendly lithium-ion batteries, free of lead. The company has received an investment of $15 million from Thor Industries, the largest manufacturer of recreational vehicles in the world. Thor Industries has over 140 brands from over 15 major RV manufacturers. A relationship with Thor does a lot for the company’s credibility. On January 11th, research firm Canaccord Genuity gave DFLI a buy rating with a $15 price target. They mentioned that batteries store energy and, consequently, solve renewables’ intermittency problems, not to mention power future mobility and animate our increasing number of power-hungry devices. Financials Dragonfly went public via a SPAC merger in 2022. Its net sales doubled from $47.2 million in 2020 to $86.3 million in 2022. However, gross profits haven’t budged much beyond $20 million. With operating expenses jumping from $11.9 million to $37.5 million, the tiny operating profits vanished by 2022. Long-term debt sits at $19.2 billion with another $16.5 billion due in the next year. With only $17.8 million cash on hand, it hasn’t been much of a surprise to see the company go through several rounds of stock sales, moving from 2.9 million shares in 2020 to 8.3 million in its latest sale, which doesn’t include 2 million in warrants and 198k in options. However, other than one with a strike price of $5.02, all the others have strike prices of $6.00 or higher. Promoter Activity One promoter highlighted this stock but struggled to make the message urgent. It started with an overview of the company, mentioning how DFLI batteries have powered RVs, marine vessels, industrial applications, and off-grid properties for years. And how its energy solutions can help reduce lead pollution. It also emphasized that Dragonfly has incredible potential in energy storage and revolutionizing the energy grid. The promotor highlighted these potential catalysts - Low-float stock (fewer than 4m shares, although Finviz has a float at 9.3m) - The stock is oversold according to several technical indicators - One analyst has the stock rated a buy with a $15 price target The promotor claims to have done their own discounted cash flow analysis and agreed with the Canaccord analyst, giving the stock a $15 valuation. However, they failed to show their work. [K7bjNtwOnzCyU_S93ocMraadrmvfJoN_cbNx5xNwwoh2D5RXnAbNGvkcbfqSxLkmDiKwBPvp_1ro6M4_ZwOPecqu4qMo3HwFkPQHINmMsyK8hESVVY0S2RTeuMCMj-rYOKYZJrTjx9lMOxvB0iiHrG8] They forgot to mention the company’s relationship with Thor Industries. But maybe they’ll mention it in future promotions. The promoter is being paid $200,000 to run the campaign from 3/30 to 5/4, which is a pretty long campaign. Straight to the Facts DFLI was taken to the woodshed in Q1, down by more than 73% year-to-date. It has a history of making huge spikes. Last October, it went from $10.90 to $27.95 in a single day. Last December, it went from $10.40 to $28.75 in just a few short weeks. You can’t ignore a stock that has the potential to be a monster mover. Plus, this company has the potential to go cash flow positive if the stars align. I would pay attention to the stock volume and see if the company can issue a catalyst-driven press release. Right now, the volume has been pretty low. But if it picks up, a trade might come soon in this symbol. Always at your service, Baron Von Stocks TEXT "AWARE" TO 888-302-2141 For Instant Alerts Disclaimer: Always do your own research and consult with a licensed investment professional before investing. This communication is never to be used as the basis of making investment decisions and is for entertainment purposes only. At most, this communication should serve only as a starting point to do your own research and consult with a licensed professional regarding the companies profiled and discussed. 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