EXRO makes self-optimizing motors and generators, and the stock is up 55% in the past year, bringing market cap to $381M. But it has minimal sales ($11M expected this year), not much cash (net debt $6M) losses and negative cash flow (-$32M in the last 12 months). It is going to need more capital. Insiders own 3%. Still, the tech is interesting and has potential. The partnerships look good. It has some patents filed. We do note it recently paid a bond interest payment in shares, which highlights its relatively tight financial structure. We also note the share count has more than doubled in the past three years. Overall, there is a lot of risk here, and with market cap near $400M investors have VERY high expectations already. It is the type of stock that will trade on news, and could do well in a risk-on market. But in a market correction it might get hit hard. No doubt there is potential here, but also a lot of risk. We would prefer a bit more solid of a financial foundation before buying.
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