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We’re presupposed to be dwelling within the golden age of inexperienced expertise and … Wait a minute! We simply used that intro in our article on EnerSys, an vitality storage firm that focuses on revolutionary lead-acid battery expertise. The lead paragraph of that story alluded to the continuing weak spot within the inexperienced tech sector, notably for photo voltaic corporations, which places strain on adjoining industries like vitality storage.
Nonetheless, EnerSys inventory (ENS) has been trending up for some time. Buyers seem bullish based mostly on the corporate’s technique to develop and undertake superior battery applied sciences like lithium-ion. The pivot away from older tech is inflicting some short-term ache because it shutters amenities and shifts manufacturing, however revenues are regular even whereas gross margins are quickly taking successful. The corporate’s diversification throughout totally different markets is one other promoting level, even because it begins to lean extra closely into inexperienced tech purposes resembling electrical automobiles. Our greatest concern is that EnerSys plans to rely closely on authorities tax breaks and subsidies to execute components of its enterprise technique.
Is Wolfspeed Inventory the Identical Outdated Story?
That is just about the identical story we’re about to inform you about Wolfspeed (WOLF), a heavy metallic band semiconductor producer that focuses on wafers made out of silicon carbide (SiC), a cloth extra environment friendly and vitality dense than standard silicon. The corporate is investing $6.5 billion to broaden its SiC manufacturing capability and restructuring its enterprise because it chases a $20 billion whole addressable
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