Fluence Energy

$Vertiv(VRT.US) is insane. This is a company that generates more annual revenue than $Powell Industries(POWL.US), $Fluence Energy(FLNC.US) & $Modine Manufacturing(MOD.US) combined.

Do you know why market loves it?

1/ A massive, multi billion dollar backlog.

2/ The Moat. You literally cannot run AI server racks without their liquid cooling and power infra.

Identify the companies that has similar moat. Like $Micron Tech(MU.US), Like $GE Vernova(GEV.US), Like the father of AI nation, $NVIDIA(NVDA.US).

$Fluence Energy(FLNC.US) 20M share offering if you’re wondering why it’s trading down.

The 20M share is not dilution, but share unlock + transfer. So change of hands.

The biggest problem was the clause that made active shelf-registered resale capacity of the 117,666,665 shares, so there’s an unlock of the other remaining ~97m shares to my knowledge.

Net negative and very material to short term trade ideas. Since it expands the float and it introduces short term selling pressure.

That’s the overhang…

I personally cut concentration on the surprising news since it’s changes my trade idea with the float structure.

But holding some anyway to see where it heads after hyperscaler deals.

Definitely not telling people what to do, presenting new material overhang created by company management.

Source: Serenity

$Fluence Energy(FLNC.US) | 𝐅𝐥𝐮𝐞𝐧𝐜𝐞: UBS downgrades to 𝐒𝐞𝐥𝐥, cuts 𝐏𝐓 𝐭𝐨 $𝟖

Analyst sees battery oversupply risk driving margin pressure, with valuation implying overly aggressive EBITDA growth vs forecasts.

Source: Hardik Shah