I'm really excited about Star Peak Energy Transition Corp's (STPK) merger with Stem, the leader in AI-powered energy storage. Today we're taking a look at why this may be one of the best clean energy stock picks for 2021 and beyond.
00:00 - Intro
1:50 - What is Stem?
2:27 - Why should you care about Stem?
4:50 - Stem vs Tesla
6:38 - Why Stem will lead energy storage
6:53 - 1. Stem's addressable market & industry trends
7:40 - 2. Stem's reputation & experience
9:20 - 3. Stem's business model & partner program (Stem University)
11:56 - Stem valuation & price target
14:26 - My strategy for investing in Stem
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LINKS & RESOURCES
Stem's Investor Presentation:
https://rb.gy/um8ilk
Citron Research Report on Stem:
https://rb.gy/w2guyp
Stem University Presentation:
• Become a Certified Expert in Energy S...
Stem/STPK Valuation video by Nesami - Smart Investing for Millennials
• STPK Stock Analysis: Price Prediction...
📈 Start investing in STPK & Stem on the platforms below for FREE stocks & more:
WeBull: https://act.webull.com/po/y2btyphGBX3... (4 FREE stocks with $100 deposit)
Robinhood: http://join.robinhood.com/tylerm27 (Get a free stock up to $500!)
M1 Finance: https://m1.finance/apNm3hKCZsWC (Get $10 free!)
Interested in camera stuff? Here's the equipment I use to shoot my videos:
https://amzn.to/3jE8Ktp
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#STPK is a SPAC stock that recently announced its merger with #Stem, the market leader in AI-driven energy storage solutions. Following a $100 price target by Citron Research, I figured this stock was worth a closer look.
Stem is an energy storage business that is helping to modernize the energy grid by switching to a renewable energy storage network. This clean energy grid will be tied together with their AI-powered software, Athena, to maximize efficiency and cost savings.
Initially, I was worrisome of competition from other businesses like Tesla. But as it turns out, Stem doesn't produce its own hardware - they use hardware from across the industry to piece together the best possible solutions for their clients. Of course, these solutions are powered by their proven Athena software. I don't think they'll be in direct competition with companies like Tesla, and will actually benefit from any technological breakthroughs in the industry as they continue to forge their path.
With Stem's patented and long-running hardware + software solution, they're well-positioned to dominate the market in the energy storage space. Here's why:
1. Stem's addressable market & industry trends
Many sources estimate trillions (TRILLIONS) of dollars flowing into energy storage in the coming years. We're at an inflection point with renewable energy under the Biden administration - Stem is likely to benefit in many ways.
2. Stem's experience & reputation
Having been around for over 10 years, with dozens of case studies and successful projects to show for, Stem is a trusted source for energy storage. They have a 75% market share in California, the country's biggest renewable energy market. Stem will likely expand this market dominance throughout the country.
3. Stem's business model & partner program
By using other business' hardware, Stem only needs to onboard clients, source the hardware, and package in their software solution for 10-20 year contracts (that's a lot of recurring revenue). Their partner program, called Stem University, also trains external teams to sell Stem's solution for them. With this structure, Stem will be able to scale fast.
With high price targets being thrown around by Citron Research, it's hard to gauge a realistic price target for the stock. Another video on YouTube suggests a $22 to $35 fair value price target - which I agree with based on the numbers. But, it's important to consider that there are other factors at play. These include:
1. Stem could over-deliver
Having already exceeded 2020 and 2021 forecasted revenues, it's possible that Stem will continue to blow past predicted earnings. That means a higher stock price.
2. Current market trends
Investors LOVE #CleanEnergyStocks, SPACs and ESG investment options. Stem checks all of these boxes, and could be on the receiving end of some lofty valuations as a result.
Therefore, I've been picking up both call options and shares of Stem, and I'll continue to do so for the foreseeable future. I'm really bullish here... please comment if I shouldn't be!
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DISCLAIMER: NOT FINANCIAL ADVICE.
The content in this video should not be used as the basis for any investment decision, as it is for entertainment purposes only. Additionally, some of the links contained in this description are affiliate links. I may earn a commission via Amazon, WeBull, M1 Finance or Robinhood should you choose to purchase or sign up at the links provided.
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