My #1 Cheap Stock To Buy NOW! [FLUX Stock]

Summary

This video script discusses Flux Power, a lesser-known investment opportunity in the stock market, specializing in lithium-ion batteries for industries like material handling and energy storage. Despite a 45% stock price drop year-to-date, the speaker is optimistic about its long-term potential, citing strong customer relationships with major companies and the company's adaptability in a challenging economic environment. The speaker shares their projections for significant growth over the next decade, based on research and their own analysis, and encourages patience and a long-term investment perspective.

Takeaways

• 😀 The speaker is a strong supporter of Flux Power as an investment opportunity, believing it to be undervalued and overlooked by mainstream investors.
• 📈 The speaker has a long-term outlook on Flux Power, projecting a potential return of $750,000 from a $10,000 investment over the next 10 years.
• 🔍 The speaker uses research from HC Wainwright, a Wall Street analyst firm, to inform their investment projections for Flux Power.
• 📉 Despite Flux Power's stock price being down 45% year-to-date, the speaker sees this as a buying opportunity rather than a failure, emphasizing the importance of patience in investing.
• 🏭 Flux Power specializes in manufacturing lithium-ion batteries for various industries, including material handling, airport ground support, and stationary energy storage.
• 🔑 The company's customer base includes major global corporations, such as Walmart, Nissan, and Caterpillar, which the speaker finds impressive for a company of Flux Power's size.
• 💹 Flux Power has demonstrated the ability to raise prices on its products, indicating strong pricing power relative to its large customers.
• 🛑 The speaker notes that the recent dip in stock price may be due to temporary macroeconomic factors affecting the goods sector, rather than company-specific issues.
• 📊 The company is focusing on diversifying its product offerings and expanding into new markets, which the speaker views as a positive strategic move.
• 📈 The speaker anticipates that as the economy recovers, Flux Power's revenues, particularly in material handling, will see significant growth.
• 📝 The speaker has a detailed spreadsheet with financial projections for Flux Power, which they believe supports a strong investment thesis.

Q & A

What is the speaker's opinion on Flux Power as an investment opportunity?

The speaker is very positive about Flux Power as an investment opportunity, considering it one of the best out there and expressing a belief in the company for the next 5 to 10 years.

Why does the speaker believe that discussing Flux Power on their channel affects the stock price?

The speaker believes that every time they upload a video about Flux Power, the stock goes up significantly the next day because the viewers of the channel like the company so much, which can move the stock price.

What is the speaker's view on the recent stock price performance of Flux Power?

Despite Flux Power's stock price being down 45% year-to-date, the speaker sees this as a failure on the part of the market to recognize the company's long-term potential and views it as a good buying opportunity.

How does the speaker use external research to support their investment thesis for Flux Power?

The speaker accesses research reports from HC Wainwright, a Wall Street analyst firm, to inform their projections for Flux Power over the next 10 years.

What is the difference the speaker sees between gambling and investing in the stock market?

The speaker believes that the stock market offers better odds than gambling, but the key to success is patience, which they feel many retail investors lack.

What is the speaker's strategy when it comes to individual stock picking?

The speaker's strategy involves believing in a company's long-term prospects and being willing to withstand criticism and short-term volatility in the market.

What is Flux Power's business focus according to the speaker?

Flux Power focuses on manufacturing lithium-ion batteries for various industries such as material handling, ground support equipment at airports, warehouse robotics, and stationary energy storage for solar-powered electric vehicle charging stations.

Why does the speaker find Flux Power's customer base particularly compelling?

The speaker finds Flux Power's customer base compelling because it includes some of the largest companies in the world, which choose to work with a relatively small company like Flux Power.

How does the speaker view the company's current financial situation and future prospects?

The speaker views Flux Power as being on the brink of profitability and believes that once the economic environment improves, the company's growth rates could be very exciting.

What is the speaker's long-term price target for Flux Power stock?

The speaker's long-term price target for Flux Power stock is $200, based on the company's ability to execute and scale up their operations over the next 10 years.

What actions is Flux Power taking to expand their business and customer base?

Flux Power is diversifying their product offerings, entering adjacent markets like airport ground support equipment, and increasing sales and marketing initiatives to secure new customer relationships and support the continued migration to lithium of current customers.