This is, by all accounts, a late-stage bull market. That doesn’t necessarily mean it has to end soon. The big bull of 1980’s and 90’s went on in a late-stage context for years and years.
The idea of “late-stage” is really about who’s driving the action. In an early-stage bull market, the driver is corporate insiders, financiers, and institutional investors. In a late-stage bull, the driver is retail investor flows, the financial media, and big thematic ideas.
In the 90’s, the internet was the clear big thematic idea. This time around, there are many candidates and many leading themes vying for attention.
However, there are only a handful of clear leading themes in play right now: Electric vehicles, Space commercialization, Infrastructure, NFTs/Crypto, Next-Gen internet, Genomics, Fintech, AI/robotics, and Remote work.
Today, we are going to focus on the first two (electric vehicles and space commercialization) because each of them represents likely a secular trend that will persist on a multi-decade and multi-trillion-dollar level over the long-term, so the big winners will be very big winners.
Right now, potentially one of the most interesting names in the small-cap space, especially given how overlooked it appears at this point, is a company that connects these two themes: KULR Technology Group Inc (OTCMKTS:KULR), which has developed battery technology that prevents critical events in EV battery systems and can be 3d printed in space.
The Lay of the Land
Likely one of the best indicators of staying power for emerging thematic trends in the market is how well it resonates with millennials and the gen-z crowd. Morgan Stanley recently estimated that over $67 trillion is set to be transferred via inheritance from older generations to younger ones over the next decade. That capital will likely form the backbone for investment trends, and it will increasingly rely on younger investors in terms of philosophical orientation.
Both electric vehicles and space commercialization represent dead-center thematic winners for that demographic transition.
That why we have seen such strong enthusiasm for stocks in the EV space like Nio Inc – ADR (NYSE:NIO), Blink Charging Co (NASDAQ:BLNK), and Plug Power Inc (NASDAQ:PLUG).
The space theme has been just as enthusiastically resonant with younger investors over recent months, with stocks like Trimble Inc (TRMB), 3D Systems Corporation (NYSE:DDD), and Iridium Communications Inc (IRDM) continuing to be highlighted consistently in social media investor forums.
However, few stocks can claim to bridge the divide between the two, which is why KULR Technology Group Inc (OTCMKTS:KULR) may present such an interesting opportunity.
The Final Frontier
The company’s applicability to the space theme goes all the way back its roots in 2015. More recently, in the fall of 2019, KULR Technology Group Inc (OTCMKTS:KULR) announced that it completed first phase development for its then-upcoming NASA high-voltage battery safety guide.
“If there’s one place that battery failure can be catastrophic, it’s in a space suit, or in an environment where response and assistance options are limited or non-existent,” said Michael Mo, CEO of KULR Technology. “That’s why we’re continuing to work with NASA, and other partners where battery safety and performance are mission-critical, to understand and ultimately prevent these dangerous battery incidents.”
The company also designed its proprietary solution, in partnership with NASA, for a means to 3D print a passive propagation resistant (PPR) and internal short circuit (ISC) augmented battery that even works in space.
All of that leads up to last week’s news that NASA selected Elon Musk’s SpaceX to build spacecrafts capable of landing astronauts on the moon for the first time since the last Apollo mission.
“As the first human lunar lander in 50 years, this innovative human landing system will be a hallmark in space exploration history,” said Lisa Watson-Morgan, NASA’s lunar lander program manager. “NASA’s Apollo program captured the world’s attention, demonstrated the power of America’s vision and technology, and can-do spirit. And we expect Artemis will similarly inspire great achievements, innovation, and scientific discoveries. We’re confident in NASA’s partnership with SpaceX to help us achieve the Artemis mission.”
In other words, you can bet the focus on the Space theme is going to scale up notably from here, and KULR will likely gain increasing attention given its central role as a key piece of the puzzle.
KULR is also likely to keep making headlines in the EV theme. The company’s CEO, Michael Mo, is set to speak at the Benzinga Small Cap conference this week on April 22.
According to conference materials, “Companies around the world are shifting gears towards clean technology to adhere to more sustainable business practices. Cleantech is just getting started, and now is a great time to explore investment opportunities in these small caps before they take over the world. On April 22, we’re sitting down with executive leadership of small cap stocks that are leading the way in clean technology. Join us to discover the companies in the cleantech industry who are moving the world forward through accessible green energy, energy efficiency, and innovative sustainability solutions.”
Mo will speak at 9:50 am ET on “Sustainable Transportation & Communication” before participating in a panel discussion at 10:10 am ET on “The Future of Electric Vehicles”.
Here is a link for further information.