Energous Corporation – WATT

Energous Corporation – WATT

Welcome to 2019! As a reminder, I often like to research and select companies that are in the pre-production or pre-commercialization stages of a company cycle. Where obviously, if executed efficiently by management, can provide significant returns on investment for any portfolio. One such qualifier and first pick of this year is Energous Corporation.

The story of Energous and where it is at with its’ WattUp technology is a big driver in why I’ve decided to open a position in WATT stock. When you think about how quickly technology is advancing and where we are headed in the future regarding power, it’s clear that cordless power, or power over radio frequency, is next on the horizon. For example, walking around your home, in every room is a variety of electronic devices that run on battery therefore needing to recharge, draw power directly from an outlet, or require both. I believe this new trend in how we power our devices will start with smaller electronics and expand from there with Energous’ technology at the forefront.

Here are a few additional points to note on what drew me to this company.

  • Addressable market potential is very large spanning multiple products and categories. Smart phones, gaming, wear-ables, IOT, hear-ables, etc.
  • Competitors with similar technology are about 3 to 4 years behind WattUp technology.
  • Already in multiple partnerships with very large companies. Ex. Dialog Semiconductor and another unnamed tier 1 consumer electronics company.
  • Energous has over 100 patents to date.
  • Working with a current count of 70+ customers.

All in all, I think there’s a good story here and it will be interesting to see how this plays out. I’ve given this ticker a 1 year target of $11.60. As they are clearly moving forward with commercializing their technology, as the company has mentioned, expecting some regulatory delays may become commonplace. Also, I anticipate some continued sideways price action or even slight downtrend as revenues aren’t expected to ramp up for another 2 or 3 quarters. We’ll see what the future holds. Remember research is key and good luck all.