Posted on June 15, 2022 by Scott Shuda
Have you driven a Tesla? EV cars are freaking fast. I drove one recently and I see the appeal – they’re super fun.
Also super fun is the feeling of finding a company that is transforming from small to large. This company I present is going to be a ‘muscle car’ of a company. This one feels…electric.
The average electric car has 2000 chips and discreet transistors, more than double the average gas car. This bodes well for Indie Semiconductor (INDI) which is parked in the garage at $6.44 a share and a market cap of $800M.
INDI is focused on the whole sensing suite that enables the car to perceive its surroundings, including radar, lidar, ultrasound, vision, and the user interface. INDI plans to be the one stop shop for many future sensing systems.
They are shooting for systems that are under 5 watts vs present systems that are in the tens of watts. That’s significant to battery life.
Revenue is growing 20% quarter on quarter which is a steep growth curve. They also announced a recent HUGE radar win, a milestone for the company. It’s a large dollar amount with a top tier European car company and a large TAM going forward. “It proves we can eat at the table with the big boys.” The win will take several years to ramp but this is an important inflection point.
By the end of 2022 they expect to accelerate past $100M in revenue. “We are well on our way to reaching profitability in the back half of next year with 60% gross margins.”
INDI has plenty of cash to execute. The stock has gone sideways for six months which is not bad all-things-tech considered. INDI is an autotech star in the making with a $2.6B backlog. Vrrooom, vrrrooom. Oh wait, that’s a gas engine sound, what sound does an electric car make? Cha-ching?
Is A Fed Relief Rally Coming? Usually bearish Michael Kramer of Mott Capital said last night, “I am of this mindset that the Fed will raise rates by 50 bps and then signal the potential for a 75 bps rate hike in July. Look, I think, either way, there is a good chance the market rallies post FOMC. Implied volatility is very high and drops off a cliff once you get past this week. So that implied volatility melt should result in stocks getting a pop. It wouldn’t surprise me if the S&P 500 rallied back to 3,815 following the Fed, whether they raised by 50 bps or 75 bps.”
*As many of you know SARK is an irritant to me. It’s the short of ARKK. SARK up means tech down. If SARK was a TV character it would be. . ..(grit your teeth). . .Hello, Newman!
*Florian Buschek shares some primo info about Boardwalk (BWLKF), the tiny software company on track for fast growth. It’s been forgotten in the tech rout and at .25 seems like a steal. I’ve been adding. For most of the year it was above .50. Says Florian, “Market cap is about $12M now. No brainer.” See BWLKF Update.
*InfuSystem (INFU) and Ventis Pharma Announce National Sales and Marketing Agreement for Pain Management
*There are multiple “supercycles” upon us, writes Scott Shuda. See “Recognizing that ‘Scarcity’ is Not Temporary; Result is Unavoidable Supercycles.”
*Iridex Obtains Regulatory Clearance for Cyclo G6® Glaucoma Platform in China. Aaron Warwick calls it a significant announcement, then had a call with IRIX management in a BI team meeting. Great work Aaron.
*There’s a potato shaped asteroid in space worth…a ton of money. It’s between Mars and Jupiter and the size of Massachusetts. It’s made of iron and nickel. It’s worth the number 10 followed by 18 zeroes or “$10 quintillion.” In August NASA will send a probe to the asteroid dubbed 16 Psyche. I call Dibs!
“If every instinct you have is wrong, then the opposite would have to be right.” – JERRY SEINFELD to GEORGE COSTANZA
Good luck to all – Chris
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