Research from Water Tower Research, Water Tower Research

Water Tower Research

Water Tower Research is a leading equity research firm that provides research on micro, small and mid cap companies.

Water Tower Research was founded by Wall Street veterans after witnessing a fundamental shift in the investment research industry with the result being a declining knowledge base among investors, a lack of awareness and a shrinking pool of fundamental research being conducted on companies across the small-cap and micro-cap spectrum. The same issues are now increasingly occurring in the mid-cap space. This sea change within the investment community is impacting not only the companies themselves but also current shareholders and potential investors. With significantly less active sell-side sponsorship by Wall Street, a substantial information gap has developed between companies and various constituents in the financial community. The net result is fewer channels for insight and information to flow between companies and investors.

Research from Water Tower Research

Equity Research Firm

Thematic (Sector/Industry)

Multiple Countries / Thematic (Sector/Industry)

SUMMARY
Upcoming Events
EVMO, Inc. (YAYO)

EVMO, Inc. VP of Sales &amp; Marketing Greg Fischer to discuss strategy and business roadmap on April 19 at 1:00 pm EDT

Broadscale Acquisition Corp. (SCLE)

Voltus CEO Gregg Dixon to discuss overview of the company’s proprietary software on April 19 at 2:00 pm EDT

This Week's Research
Crown Electrokinetics (CRKN)

Over $45 Billion Will be Wasted Annually on Energy Consumption in the US; Conventional Windows a “Weak Link”

Last Week’s Research
Crown Electrokinetics (CRKN)

Looking Through the Window Into Smart Glass Solutions For The Commercial Retrofit Market

EVMO, Inc. (YAYO)

Positioned For Growth—A “Pick and Shovel” Play On the Rapidly Growing Rideshare/Gig Market

SES AI Corp. (SES)

Driving Ahead With Commercial Scale Proprietary Li-Metal Battery Solutions For Electric Vehicles

Previous Research
SES AI Corp. (SES)

COO Rohit Makharia Discusses Key Milestones and Drivers Behind SES's Unique Li-Metal Technology and the Drive Towards Commercialization
Shareholder Letter—Confident of the Business Plan and Aiming to Achieve Key Milestones in 2022

Crown Electrokinetics (CRKN)

Company’s Office Building IP Portfolio Worth $94.4 Million as Assessed by a Third-Party Report

INDEX STATISTICS


ABOUT THE WTR INDEX
The WTR Sustainable Investing Index is built on 150 companies in four primary segments with multiple sub-sectors: 1. Energy Technology (including Power Generation, Hydrogen &amp; Fuel Cell, Energy Storage, and Lithium Supply Chain); 2. Modern Mobility (Advanced Motive, EV Charging, Smart Driving); 3. Industrial ClimateTech; 4. Smart Buildings. The index monitors share price performance, valuation metrics, and consensus estimates. Our weekly reports also cover industry activity and news flow.
SUMMARY

WTR Sustainable Index: During the week ended April 14, 2022 the WTR Sustainable Index underperformed the broader market, falling 3.3% W/W versus the S&amp;P 500 Index (down 2.1 %), the Russell 2000 index (down 2.6%), and the Nasdaq Composite Index (up 0.5%). Energy Technology and Modern Mobility led the underperformance last week, down 1.5% and 3.7% respectively. Other sub-sectors underperformed— Industrial ClimateTech was down 1.0% and Smart Buildings down 1.6%.
Valuation: Based on forward 12-month consensus estimates, the current P/E ratio of the WTR Sustainable index is 26.7x vs. 18.8x for the S&amp;P 500.
Consensus estimates changes: During the week ended April 14, 2022 there were&nbsp;increases&nbsp;in 2022 revenue estimates for one company in Modern Mobility and two in Industrial ClimateTech. There were&nbsp;decreases&nbsp;in 2022 revenue estimates for seven companies in Modern Mobility. Five companies (one in Energy Technology, three in Modern Mobility and one in Industrial ClimateTech) saw&nbsp;increases&nbsp;in 2022 EPS estimates, while five companies (three in Modern Mobility and one each in Industrial ClimateTech and Smart Buildings) saw decreases in 2022 EPS estimates.

SHARE PRICE PERFORMANCE SUMMARY
Share Price Performance
HTOO shares were up 23% following news of loosened ethanol regulation. SWVL shares were down 32% following merger with Queen’s Gambit.




Consensus Estimates
Figures 7-8 show W/W changes in FY22 revenue and EPS estimates for selected companies in the WTR Sustainable Index. For the week ended April 14, 2022, there were three increases and seven decreases in FY22 revenue estimates, and five increases and five decreases in FY22 EPS estimates.
Figures 9-10 show the number of companies with W/W changes in consensus revenue and EPS estimates by sub-sector for FY22E.















KEY INDUSTRY AND COMPANY NEWS OF THE WEEK
Energy Technology
Why Battery Storage Is the Key to Making the USA’s Energy Sector Carbon-Free By 2035
https://www.evwind.es/2022/04/13/why-battery-storage-is-the-key-to-making-the-usas-energy-sector-carbon-free-by-2035/85641
For both the United States and the rest of the world, reaching renewable energy targets depends on hybrid power plants featuring battery storage. And Enel Green Power is leading the way in this field, particularly in the Lone Star State of Texas. Last year the Biden administration announced plans for the energy sector in the United States to be carbon-free by the year 2035. This is ambitious, given that in 2020 20% of the country’s electricity generation came from renewable sources. And yet, according to Enel Green Power’s Head of North America, Paolo Romanacci, the 2035 target is feasible, but on one condition: that we “address the energy storage elephant in the room.” Writing in the publication GreenBiz, he observes that the USA needs “more electricity generation, more resource diversity and more reliability services. Hybrid renewable energy-plus-storage projects provide all three.”
Greaves Electric Mobility Partners With Mesha Energy Solutions for Battery Technology
https://www.carandbike.com/news/greaves-electric-mobility-partners-with-mesha-energy-solutions-for-battery-technology-2882223
Greaves Electric Mobility, the electric mobility arm of Greaves Cotton Limited, has announced a strategic partnership with Mesha Energy Solutions Private Limited, an energy storage technology company based in Bengaluru, India. Mesha Energy Solutions is a 100 per cent wholly owned subsidiary of Mesha Inc. based in the USA. With this association, Greaves Electric Mobility has strengthened its play in the EV battery segment and is well-positioned to provide better driving experience to its EV customers. The company says with new battery tech, faster charging allows for longer uptime for commercial use cases. Commenting on this announcement, Ram Rajappa, Chief Technology Officer, Greaves Electric Mobility, said, "Battery is an integral part of EV and this association with the company is part of our strategy to create an enabling and robust EV ecosystem. Moreover, to deliver on our promise to accelerate the adoption of electric vehicles in India, our partnership with Mesha will help in delivering higher performance with advanced battery technology solutions to not only our customers in India but across the globe and strengthen our leadership position in EV."
Modern Mobility
Autonomous Delivery Vehicles to Revolutionize Shopping, Shift Consumer Preferences
https://www.geospatialworld.net/prime/autonomous-delivery-vehicles-to-revolutionize-shopping-shift-consumer-preferences/
Udelv unveiled its first cab-less autonomous electric delivery vehicle for multi-stop delivery, the Transporter at CES this year. The electric delivery vehicle features a detachable modular cargo pod called the uPod that can carry up to 2,000 pounds of goods, make up to 80 stops per cycle at highway speeds, and cover ranges between 160 and 300 miles per run. It is operated by Udelv’s mobile apps to seamlessly schedule, deliver, track, and retrieve packages. In 2018, the company made its debut in California with the first-ever autonomous delivery. Since then, it has completed over 20,000 deliveries in California, Arizona, and Texas. Udelv aims at having 50,000 units of the Transporter on roads by 2028, with the first Transporters being commercially deployed in 2023. The Transporter is driven by the Mobileye Drive self-driving system with a robust suite of cameras, LiDARs, radars and the fifth generation of EyeQ, Mobileye’s System-on-Chip for automotive applications.
Hyundai Motor to Begin Electric Vehicles Production in the US
https://www.reuters.com/business/autos-transportation/hyundai-motor-begin-electric-vehicles-production-us-2022-04-13/
Hyundai Motor Co (005380.KS) plans to add electric vehicles (EV) in its Montgomery assembly line in the United States, marking the South Korean automaker's first EV production in the country, Hyundai Motor Manufacturing Alabama said on Tuesday. Hyundai said it plans to invest $300 million to build the Electrified Genesis GV 70 and hybrid version of the Santa Fe at its U.S. manufacturing center.
Smart Buildings
ChargePoint Completes Its First EV Fast-Charging Corridor Along Highway 40
https://www.petrolplaza.com/news/29745
ChargePoint has announced the completion of the first of six electric vehicle fast-charging corridors in partnership with the Colorado Energy Office. Corridor A runs along Highway 40 from Boulder to Dinosaur near the Utah border. In total, 20 fast-charging sites have been activated under this initiative, with several more under construction. Other sites are strategically located along I-70, Highway 50, Highway 550 and other key travel corridors. Drivers can find the location of charging sites on the ChargePoint mobile app or website. The fast-charging highway corridors project is a public-private partnership involving a $10 million investment by the Colorado Energy Office, which includes funding from the Volkswagen Settlement and Congestion Mitigation and Air Quality (CMAQ) Improvement Program, as well as investments by ChargePoint, local jurisdictions, electric utilities, and Colorado businesses.
Are Smart Buildings the Next Target for Cyberattacks?
https://www.hstoday.us/featured/are-smart-buildings-the-next-target-for-cyberattacks/
Smart buildings and IoT sensors and devices have revolutionized the traditional way of living. Smart building benefits like energy efficiency, cost reduction and improved tenant comfort and security have spurred increased demand worldwide — with the number of smart buildings expected to increase 9.9 percent by 2028. Today’s smart buildings rely on hundreds to thousands of IoT sensors and computers connected to local servers and the internet to automate functionalities like controlling lighting, climate and elevators, as well as fire detection, video surveillance and badge access. These sensors, used in conjunction with Building Automation System (BAS), provide a mountain of valuable insights and actionable data about building condition and performance. Yet, they often lack basic cybersecurity features, making them prone to cyberattacks. For example, BACnet, the data communication protocol for HVAC control, is deployed in an unencrypted format, making it vulnerable to be exploited by attackers.
Industrial ClimateTech
Greentown Labs Reveals its 'Greentown Go' Climatetech Partnerships Accelerator; Announces First Two Programs
https://finance.yahoo.com/news/greentown-labs-reveals-greentown-climatetech-130000009.html
Greentown Labs, the largest climatetech startup incubator in North America, today announced its new Greentown Go climatetech partnerships accelerator. With a mission of decarbonizing the key greenhouse gas (GHG)-emitting sectors, Greentown Go is focused on building startup-corporate partnerships that propel climatetech solutions to market. Greentown Go is an evolution of Greentown's proven corporate partnerships accelerator model formerly known as Greentown Launch. Building upon Greentown Launch's successful track record, Greentown Go has a heightened focus on climatetech deployment across the five largest GHG-emitting sectors: transportation, energy and electricity, manufacturing, buildings, and food and agriculture. Each track will have a dedicated annual program with a leading corporate partner along with potential supporting, contributing, and civic partners that are all working in concert to tackle a specific decarbonization challenge.
Inside the New $100 Million Women-Led Climate Tech Fund
https://www.greenbiz.com/article/inside-new-100-million-women-led-climate-tech-fund
Voyager Ventures last week announced a $100 million fund focused on early-stage climate tech companies. The size alone is impressive for an inaugural fund, and its backing includes many big names in tech and investing. In a quickly saturating climate investing field, what is equally notable about the San Francisco-based fund is the expert knowledge that managing partners Sierra Peterson and Sarah Sclarsic bring from founding and funding climate tech companies to the climate policy space. (More on that in a moment.) The fund is supported by a suite of investors and partners across the corporate, climate tech and environmental worlds. This includes past or present CEOs of General Electric, Lyft and Shopify, as well as Lowercarbon Capital’s Chris Sacca. The Nature Conservancy has also joined as an investor and partner, bringing its scientific rigor to the fund.
WTR SUSTAINABLE INDEX CONSTITUENTS
Figure 20: Energy Technology Comp Table


Source: Thomson Reuters
Figure 21: Modern Mobility Comp Table


Source: Thomson Reuters
Figure 22: Industrial ClimateTech Comp Table

Source: Thomson Reuters
Figure 23: Industrial Cleantech Comp Table

Source: Thomson Reuters
DISCLOSURES
Water Tower Research (“WTR”) is a professional publisher of investment research reports on public companies and, to a lesser extent, private firms (“the Companies”). WTR provides investor-focused content and digital distribution strategies designed to help companies communicate with investors.  WTR is not a registered investment adviser or a broker/dealer nor does WTR provide investment banking services. WTR operates as an exempt investment adviser under the so called “publishers’ exemption” from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940. WTR does not provide investment ratings / recommendations or price targets on the companies it reports on. Readers are advised that the research reports are published and provided solely for informational purposes and should not be construed as an offer to sell or the solicitation of an offer to buy securities or the rendering of investment advice. The information provided in this report should not be construed in any manner whatsoever as personalized advice. All users and readers of WTR’s reports are cautioned to consult their own independent financial, tax and legal advisors prior to purchasing or selling securities.  Shawn Severson, who is the writer of this report, covers the BioEconomy, Emerging Growth &amp; Special Situations and ClimateTech &amp; Sustainable Investing sectors for WTR. Mr. Severson and members of his household have no personal or business-related relationship to the subject company other than providing digital content and any ancillary services WTR may offer.  Unless otherwise indicated, WTR intends to provide continuing coverage of the covered companies. WTR will notify its readers through website postings or other appropriate means if WTR determines to terminate coverage of any of the companies covered.  WTR is being compensated for its research by the company which is the subject of this report. WTR receives no more than a maximum of $10,500 per month from a given client and is required to have at least a 6-month commitment. None of the earned fees are contingent on, and WTR’s client agreements are not cancellable for the content of its reports. WTR does not accept any compensation in the form of warrants or stock options or other equity instruments that could increase in value based on positive coverage in its reports.  WTR or an affiliate may seek to receive compensation for non-research services to covered companies, such as charges for presenting at sponsored investor conferences, distributing press releases, advising on investor relations and broader corporate communications and public relations strategies as well as performing certain other related services (“Ancillary Services”). The companies that WTR covers in our research are not required to purchase or use Ancillary Services that WTR or an affiliate might offer to clients.  The manner of WTR’s research compensation and Ancillary Services to covered companies raise actual and perceived conflicts of interest. WTR is committed to manage those conflicts to protect its reputation and the objectivity of employees/analysts by adhering to strictly-written compliance guidelines.  The views and analyses included in our research reports are based on current public information that we consider to be reliable, but no representation or warranty, expressed or implied, is made as to their accuracy, completeness, timeliness, or correctness. Neither we nor our analysts, directors, officers, employees, representatives, independent contractors, agents or affiliate shall be liable for any omissions, errors or inaccuracies, regardless of cause, foreseeability or the lack of timeliness of, or any delay or interruptions in the transmission of our reports to content users. This lack of liability extends to direct, indirect, incidental, exemplary, compensatory, punitive, special or consequential damages, costs, expenses, legal fees, losses, lost income, lost profit or opportunity costs.  All investment information contained herein should be independently verified by the reader or user of this report. For additional information, all readers of this report are encouraged to visit WTR’s website www.watertowerresearch.com.

Weekly Sustainable Investing Surveyor: Week Ended April 14, 2022