Today’s article was carefully harvested from the bones of an older Friday File, with some updates and additional thoughts thrown in.
The pitch being covered here was that Andy Obermueller had identified the “Google of Energy Storage” and some other interesting battery-related stocks — I first covered the ad in this space back in February of 2016 for our paid members (that’s where most of the article below comes from), but I’ve continued to see a similar ad every few weeks this year… and now that Game-Changing Stocks has a new editor at the helm, they’ve slightly repurposed the ad to focus more on Elon Musk and jazz it up a bit, but the teaser pitch for the two top companies in the ad still looks word-for-word identical to me.
What is below is mostly unchanged from last year… which is a nice reminder that no, these ads do not always represent the very best idea from the current writer/editor of the newsletter, they often represent just a rehash of what the marketing folks know will work to lure in subscribers. The words that used to go out over Andy Obermueller’s signature have not changed, but now the ad is signed by current “Chief Investment Strategist” Genia Turanova. (I don’t know whether the departure was voluntary or not, but Obermueller has moved on, it appears, to start a faith-based investment newsletter called Saving Grace.)
So what’s the story?
Game Changing Stocks is touting a bunch of energy storage stocks that they think will benefit from the huge push toward better batteries and other storage technology, spurred by the well-publicized Gigafactory that Elon Musk’s Tesla is building to create enough lithium battery supply for their future cars and for other applications… like the Tesla Powerwall home battery that they’re selling (just as sleek and shiny as the cars, naturally).
This appears to be right in the teaser wheelhouse of “hot stuff” still — so many newsletters continue to tout the resurgence of solar, and storage has a huge role to play in the future of solar energy, so I expect we’ll keep seeing these solar/storage ideas pitched in the months to come (yes, even with low oil prices). And it’s not just because Elon Musk is smushing Tesla (TSLA) and SolarCity (SCTY) into one big happy family.
I’ll spare you all the “power storage will be huuuuge” stuff, which we will stipulate (storage and efficiency are the two keys to reducing reliance on coal and gas for electricity), and move on to the specific ideas:
“Stock #1: 1,000% Gain from “The Google of Energy Storage”
“My first pick is perfect for conservative investors.
“It’s ‘The Google of Energy Storage’ and offers an incredible opportunity: the chance to make 1,000% gains by investing in a well-established industry leader.
“It’s the global leader for industrial applications. It already has facilities in 20 countries, and customers in 120.
“Given its breadth, it would be essentially impossible for the energy storage market to take off without this company soaring with it. After all, with a 23% market share, it already dominates the market.
“As I said, the U.S. energy storage market alone is set to soar 1,100% over the next four years. This company is the perfect way to capture that growth. If it does nothing more than rise with the tide, it could deliver quadruple-digit returns.
“And that’s not even counting any growth it gets from its operations in other countries….
“What’s also great is that almost no one knows about this company. Despite growing its net income by 483% over the past decade and watching its share price quadruple, it’s still completely under the radar.
“Only about 317,000 shares trade hands per day — which is how many shares Apple trades every eight minutes.
“I’ve tagged this company as an immediate ‘buy.’ As the energy storage revolution unfolds, I think it’s only a matter of time before its share price takes off… and the company becomes a household name.”
It always catches my eye when you’re dealing with an investment that someone touts as “conservative” and that has relatively low trading volume and probably not much of a following, but with some growth and potential for more growth… so that gave me enough curiosity to put some time into firing up the ol’ Thinkolator to ID this one. Obermueller’s hinting at: EnerSys (ENS), which is indeed an industrial battery company.
EnerSys does claim facilities in 20 countries and customers in 120, and they do claim to have 22% market share in their core business (industrial lead acid batteries, mostly for forklifts and backup power systems). As of this year they say it’s 22% of a $9.8 billion business, a few years ago it was 23% of a $8.8 billion business, so it’s been pretty consistent and growing (albeit slowly). Their business is about half “motive power” and half “reserve power” — the motive power stuff is almost entirely from battery-powered forklifts and similar industrial vehicles, the “reserve power” is primarily (about 2/3) for telecom and “unin