MVST poised for another massive runupMVST Valuation Doesn’t Make Sense
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Let’s put things into perspective. Consider KULR, a stock I’ve been bullish on for years (I'm also the KULR subreddit admin). KULR, with $40 million in annual revenue, has a market cap of $300 million. Meanwhile, MVST, with $400 million in revenue and already profitable, is only valued at $390 million. A profitable company trading at less than its annual revenue is a rare opportunity in today’s market.
Why I’m Extremely Bullish on MVST
Revenue & Profitability: MVST recently reported $101.4 million in Q3 revenue, a 26.6% YoY increase. Their gross margin rose to 33.2% (from 22.3%), and they achieved a net profit of $13.2 million—proof that they’re not just growing but doing so profitably.
Industry Comparison: Comparing to KULR again, a market cap-to-revenue ratio of 7.5x would imply MVST deserves a market cap of $3 billion—a 10x from its current valuation. This isn’t just a hypothetical; I’ve seen this happen before with KULR, which 15x’d within a year. (And still giving.)
Growth Potential: MVST’s 2024 revenue is projected to grow 15-18% YoY, supported by a strong gross margin target of 25-30%. The company’s focus on next-gen battery technologies like solid-state batteries positions it well for sustained growth.
Short-Term Catalysts to Watch
Q4 Earnings: MVST guided Q4 revenues to $90-$95 million. If profitability continues, expect a significant re-rating of the stock.
Long-Term R&D Success: Their work on silicon-based cells and ESS solutions can open new revenue streams.
Market Realization: Historically, the market has corrected misvaluations like this. Dismissive attitudes, similar to what I saw with KULR early on, often precede massive price movements.
Technical Price Analysis
Current Levels: MVST is trading at $1.20, far below its book value. Support levels are forming around $1, with resistance near $1.40.
Potential Upside: If MVST trades at a fair value reflecting its fundamentals, the $10 target isn’t far-fetched. The price could consolidate briefly before breaking out, driven by earnings momentum.
Addressing Bearish Concerns
Some have raised concerns about near-term dilution or declining sequential revenues. While an offering might impact the stock in the short term, MVST’s profitability ensures any capital raised will fuel growth, not just sustain operations. Sequential revenue declines are normal in seasonally affected industries and don’t undermine long-term trends.
Conclusion:
I’m long on MVST. Just as KULR proved skeptics wrong, I believe MVST will too. Its fundamentals are too strong for this valuation to persist. At today’s prices, it’s not just a buy—it’s an opportunity to get in on a stock with 10x potential before the market wakes up.
Let’s discuss—are you bullish, bearish, or somewhere in between?
Disclosure: I’m heavily invested in MVST and KULR.
