Romeo Power, Inc.

Romeo Power, Inc. (NYSE: RMO) develops lithium-ion cylindrical battery packs for electric vehicles and energy storage systems, emphasizing battery innovation, functionality, energy density, safety, and performance. Romeo Power North America and Joint Venture Support are two of the company's segments.

Key Highlights

• The company reported YoY growth of 25% in net revenues to USD 16.80 million in FY21 (ended December 31, 2021) compared to USD 8.97 million in FY20.
• RMO reported net income of USD 10.03 million in FY21 vs. net loss of USD 11.74 million in FY20 .
• As of December 31, 2021, the company had cash and cash equivalents of USD 119.95 million and total debt of USD 3.52 million.
• RMO's FY21 cash cycle of 311 days is significantly higher than the industry median of 79 days.
• Its ROE was 4.2% in FY21 vs. the industry median of 11.1%.
• RMO net margin for FY21 was 59.7%, higher than the industry median of 8.8%.
• On March 11, 2022, Romeo Power and Wrightspeed announced that they would collaborate to accelerate electrification in the bus, medium and heavy-duty truck markets by combining Romeo Power's high-capacity battery packing and module technology with Wrightspeed's high torque, high-efficiency powertrain system.
• Stock is currently trading below its crucial short-term (50-day) and long-term (200-day) SMA support levels, a bearish indicator.
• The stock is leaning towards the lower end of its 52-week range of USD 1.33 to USD 14.61.
• RMO's stock price decreased 71.68% and 84.40% in the past six and nine months, respectively.

Conclusion:

Considering the topline and bottomline growth, technical indicators, and associated risks, we recommend a "Watch" rating on the stock at the current price of USD 1.34, up 1.13%, as of March 15, 2022, 03:47 PM ET.

Technical Price Chart (as of March 15, 2022, at 03:47 PM ET). Source: REFINITIV, Analysis by Kalkine Group

Technical Analysis Summary:

Investors can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario.

Technical Indicators Defined: -

Support: A level where-in the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.

Resistance: A level where-in the stock prices tend to find resistance when they are rising, and uptrend may take a pause due to profit booking or selling interest.

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.

Note 1: The reference data in this report has been partly sourced from REFINITIV.  

Note 2: Investment decision should be made depending on the investors' appetite on upside potential, risks, holding duration, and any previous holdings. Investors can consider exiting from the stock if the Target Price mentioned as per the valuation has been achieved and subject to the factors discussed above. 

Mullen Automotive, Inc.

Mullen Automotive, Inc. (NASDAQ: MULN) is a company that produces electric automobiles and energy solutions. The company aims to make electric vehicles more accessible by constructing an end-to-end ecosystem that handles all aspects of electric vehicle ownership.

Key Highlights:

• MULN is a pre-revenue company with no commercial activities as of now.
• The company has reported an increase in research and development expenses to USD 1.16 billion in Q4FY21 (ended December 31, 2021) from USD 518.02 million in Q4FY20.
• However, its net losses increased to USD 36.46 billion in Q4FY21 vs. USD 5.00 billion in Q4FY20.
• Stock is currently trading below its crucial short-term (50-day) and long-term (200-day) SMA support levels, indicating a bearish trend.
• Stock is leaning towards the lower-band of the 52-week range of USD 0.52 to USD 15.90.
• MULN stock price has surged 30.81% and 21.04% in the past week and month, respectively.

Conclusion:

Considering the company's nil commercial activity, a surge in the stock price in a short span, macroeconomic headwinds, and hyped technical indicators, we recommend a "Watch" rating on the stock at the current price of USD 1.62, down 7.91% as of March 15, 2022, at 3:10 PM ET.

Three-Year Technical Price Chart (as of March 15, 2022, at 3:10 PM ET). Source: REFINITIV, Analysis by Kalkine Group

Technical Analysis Summary:

Investors can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario.

Technical Indicators Defined: -

Support: A level where-in the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.

Resistance: A level where-in the stock prices tend to find resistance when they are rising, and uptrend may take a pause due to profit booking or selling interest.

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.

Note 1: The reference data in this report has been partly sourced from REFINITIV.  

Note 2: Investment decision should be made depending on the investors' appetite on upside potential, risks, holding duration, and any previous holdings. Investors can consider exiting from the stock if the Target Price mentioned as per the valuation has been achieved and subject to the factors discussed above.