It has been clear for a while that 2018 wasn’t going to be a great year for Maxwell Technologies (MXWL),
but bulls could take some solace in the idea that 2019 would see the
start of meaningful ramps in long-awaited opportunities like auto
ultracapacitors. While that is still a valid bull thesis in my view, the
reality is that 2018 has been tougher than expected, including a higher
cash burn that forced the company to move faster with a dilutive
financing.
I’m frankly torn on these shares. I do
genuinely believe that the company is going to see meaningful auto
revenue starting in 2019 from platform wins in active suspension and
ADAS backup systems and grow from there, and I do also believe in the
potential in areas like rail. On the other hand, this is not a company
whose execution track record leads me to want to lend any of whatever
credibility I have to them. Accordingly, while I do think these shares
are undervalued on the potential of the launches in 2019 and beyond,
this is a consummate “caveat emptor” stock and one where you really need
to do your own careful due diligence.
Continue here:
Maxwell Continues To Sorely Test Investor Patience Ahead Of Commercial Ramps
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