Q: Hello,
Happy New Year; is Electrovaya worth stepping into or is it still too risky? Knight seems to have perked up a bit. Is the launch of the drug causing the small surge and is it something noteworthy or will this be another slow rise and than fall back to the 5 dollar level? Much appreciated.
Happy New Year; is Electrovaya worth stepping into or is it still too risky? Knight seems to have perked up a bit. Is the launch of the drug causing the small surge and is it something noteworthy or will this be another slow rise and than fall back to the 5 dollar level? Much appreciated.
5i Research Answer:
ELVA is still quite small and still has negative cash flow. We would still consider it quite risky. It is supposed to turn a profit this year, and big growth is expected in fiscal 2025. It has had a big start to 2024 (up 26%) but we think buyers will still have some time here. It is interesting, but higher risk for sure and we would let it consolidate or at least get to positive cash flow. GUD has launched another new product, just for the Canadian market. While it is a continuation of its overall strategy and there is nothing wrong with the launch, we would temper our excitement here: analysts actually expect a decline in per share earnings in 2024.