Profit Taking On Energous Corporation (WATT)

FM Wealth Management News Letter

Last week was a great week for all of you who took a position in Energous Corporation (WATT) the developer of WattUp(R)-the award-winning, wire-free charging technology a stock we suggested the quite a while back. You’re patience has been rewarded as shares surged on Thursday to over $32 per share (which is $4 above the $28 strike price we set for the stock back in May). 

The company Tuesday evening issued a press release after market close saying it won Federal Communications Commission certification of its “mid-field” transmitter.  On Wednesday the FCC confirmed that it had, indeed, issued the certification.  Causing the stock to rocket up 168% on Wednesday, and another 33% on Thursday.

The test report included in the Energous application, prepared by Underwriters Laboratory, which is available among the FCC’s exhibits for the matter, describes the measurement of how emissions would be absorbed by the human body at distances of 90 centimeters, or roughly 3 feet, to test for safety. It is this test for safety at a 90-centimeter distance that was given approval by the FCC.

The transmitter, as published in the certification, is 10 watts of conducted power and greater than 100mw of power received into the receiving device.

Which means that the power reviewed by the FCC might be not be enough for a smartphone like an Apple iPhone that is rated at 5 watts or others with fast or quick charging that utilize 7.5 watts of power.  It will on the other hand be good enough for the watches produced by Apple and Samsung as well as other wearable gadgets, which generally draw fractions of a watt of power.

If you consider that Energous has always maintained that a full 5 watts of power is not necessary for what it envisions. Their idea is to “top up” your smartphone by charging it more frequently. That way you don’t have to constantly dock the phone, it just charges when in range of a transceiver. Energous believes it is building a system to add another 10% or so more frequently, to perhaps keep you from falling to 20%, instead of building a charger to charge your phone from 20% back to 70%.

The FCC stated that the frequency band in which Energous submitted its application has no specified cap on power. So there’s nothing to stop Energous from producing further tests showing a transmitter operating at higher wattages.

With an average buy price on WATT of $12 dollars and an average sell price of $31.10 that represents an average return to clients of 159% in just less than 7 month.  Congratulations to all of you who participated in that one, not a bad way to end 2017.

Adding Energous Corporation (WATT) – Markets Stall for Now

Good day everyone. We got an increase in CPI this morning (Consumer Price Index) of .2% for April after a .3% decline in March. The index for all items less food and energy rose 0.1% in April after declining 0.1% in March. This may finally start to reflect the early stages of reflation – especially after yesterday’s PPI (Producer Price Index) rise of .5% for April after a .1% decline in March.

One month does not a trend make, but considering how PPI and CPI have been over the last few months, we suspect yesterday and today’s anticipated data is what helped the markets move higher by day’s end yesterday. The move was not only impressive, it once again proved naysayers can’t simply jump in front of any short-term weakness.

The daily chart of the NASDAQ Composite here is a perfect example of what took place by day’s end yesterday. As you can see, the index moved lower for the good part of the day, only to come roaring back by day’s end. However, you can also see the index still made a lower high when compared to the previous two days of trading activity. Yet, the index still has every right to buck the series of lower highs as soon as today. We’ll see.

In the meantime, we’ve got a brand new trading idea, one we’re actually pretty excited about. It doesn’t come without some risk, but this is precisely the type of play that could end up being a nice little homerun someday. And, based on what we just heard from the Company, we could be entering into this specific idea at the right inflection point.

Energous Corporation (WATT) is the developer of WattUp(R)-an award-winning, wire-free charging technology that will transform the way consumers and industries charge and power electronic devices at home, in the office, in the car and beyond. Read our report on WATT here.

It’s a revolutionary radio frequency (RF) based charging solution that delivers intelligent, scalable power via radio bands, similar to a Wi-Fi router. WattUp differs from older wireless charging systems in that it delivers power at a distance, to multiple devices – thus resulting in a wire-free experience that saves users from having to plug in their devices.

Basically, if Energous’ proprietary technology receives massive adoption, it’s going to change the mobile device world forever. We all know everyone’s technical lifeblood these days is dependent on a mobile phone charge. Looking for a plug-in somewhere, fighting over iPhone charger chords. You name it. Lose a charge, and everyone from kids to their parents are freaking out.

Although the Company is expected to continue to lose money into the foreseeable future, if its technology gains adoption, and more importantly its potential growth starts to take hold, its current share price of just over $15 per share may end up being a gift at some point down the road.

A pure small cap play with a market cap of $317M, Energous has over $31M in cash on the books and no debt. There’s no question its next several quarters are likely to chew away at its cash reserves, unless of course Management’s revenue and earnings projections start to take hold.