I set out on a mission to do a fair comparison between LIS and another company who appeared to be our best placed global “rival”. They also have a US listing with a healthy market-cap and I was interested in how our financials stacked up also.
The technical side of the project I handed over to a friend with an astute technical background in the electrical/engineering field.
Whilst they completed their due diligence on the technical side I dived into some research. My plan was to chart everything side by side with what we know LIS has announced, alongside a lithium-ion battery and the “rival”.
I asked my mate to do a side-by-side ‘like for like’ assessment on all aspects of the battery to suit my model.
I was dumbfounded by what my research was presenting….
Meanwhile, my mate phoned and made the following observations:
- Everything about this company is a pipedream
- There is no science to back up any of their claims
- They do not have a credible lead scientist
- Fancy words and terms like ‘special ceramic’ are used which are bogus
- The ‘head scientist’ they are using has a mechanical background – nothing to do with electrical or nanotech applications
- There is no University backing or credibility
Finally, he said this company has nothing, it appears to be a scam – it is all BS!!!
Back to my own research…….QuantumScape was founded by Jagdeep Singh who previously had several start-up companies. Basically, he one day decided to make a new battery and decided he would go and complete a course.
QS Stock Still Undera Dark Cloud
I know many readersare probably tired of hearing about the allegations against QuantumScape. Itmay seem like old news at this point to bring up the 188-page bombshell report that called QuantumScape a worse fraud than Theranos. However, that bearish report is still the most crucial factor for QS stock’s outlook.
That’s because thecompany never managed to credibly refute many of the major allegations in thereport. That’s not just anecdotal either, QuantumScape stock hasn’t seen anysignificant rallies or bullish activity since April when the report hit. Themarket has judged the report to be significant and management’s response to beunderwhelming.
https://www.nasdaq.com/articles/even-at-current-lows-quantumscape-stock-still-offers-no-reason-to-buy-2021-08-16
The report, titled "A pump and dump SPAC scam by siliconvalley celebrities, that makes Theranos look like amateurs," say thatQuantumScape's technical claims on its highly guarded battery technology aremisleading, exaggerated, or fraudulent.
The report is based off of interviews with former QuantumScapeemployees, as well as battery experts and current Volkswagen employees that arefocused on the auto company's electric vehicle battery efforts.
"Our research indicates that QuantumScape can't evenreliably make test cells that work," the report said, adding that"red flags around scaling and manufacturability render QuantumScape'scells a pipe dream."
"A key feature of thelargest frauds is often the backing of a famous investor or corporate partner,in this case VW - 'the smart money' - that lends credibility to the scam,"Scorpion Capital said.
https://markets.*.com/news/stocks/quantumscape-stock-price-short-seller-compares-disgraced-startup-theranos-2021-4
"Our due diligence ofQuantumScape’s six key technical claims leads us to conclude they lackcredibility and exhibit Theranos-like red flags," according to thepresentation. "Volkswagen (DE:) employees indicate that engineers and battery expertsinternally are highly skeptical of QuantumScape’s claims, getting 'nicePowerpoint slides' and little else."
https://www.investing.com/news/stock-market-news/bill-gatesbacked-quantumscape-accused-of-fraud-shares-tumble-2475808
"We conducted 15 in-depth research interviews, including 9former R&D employees, 4 leading solid-state battery experts, and 2employees in Volkswagen’s EV battery effort," the report said. "Ourresearch leads us to conclude that the company is no different than otherrecently exposed SPAC promotions and EV frauds."
Scorpion'sreport said that Volkswagen employees indicate that engineers and batteryexperts internally are highly skeptical of QuantumScape’s claims, getting “nicePowerpoint slides” and little else.
https://www.thestreet.com/investing/quantumscape-qs-stock-scorpion-short-report
A check of Scorpion Captital:
"Activist short selling focused on publicly traded frauds and promotes.
Scorpion Capital specializes in intensive, differentiated research which uncovers what investors have missed and Wall Street is paid to ignore. Our investigations seek to “crack the case" through a persistent and thorough process for which other market participants may lack the bandwidth or inclination. We aim to publish the most rigorous due diligence conducted to date on each fraud or promote that we target."
https://scorpioncapital.com/
| | Activist short selling focused on publicly traded frauds and promotes. Scorpion Capital specializes in intensive, differentiated research which uncovers what investors have missed and Wall Street is paid to ignore. scorpioncapital.com |
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A check of QuantumScapes Patents:
https://patents.justia.com/assignee/quantumscape-corporation
Many of QuantumScapes patents talk about garnet….this is more BS…..see below
Needless to say it is impossible to do a technical comparison.
If you would like to look at the LIS comparison to lithium-ion this is on the website.
https://www.lis.energy/site/li-s-energy-applications/lithium-sulphur-key-advantages
A financial comparison between LIS and QuatumScape is very interesting.
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| LIS currently | QS currently | QS 12 month high |
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| 1 | Country of Origin | Australia | US | |
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| 2 | Mkt/Cap | $1.181B | $14.54B * | $75.5B # |
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| 3 | Share Price | $1.85 | $35.68 ** | 183.06 ## |
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| 5 | Notes: | Conversions to $AUS | using $0.72c |
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| 6 |
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| $10.48B US * | $54.8B US # |
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| 7 |
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| $25.67 US ** | $132.73 US ## |
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Bear in mind QuantumScape do not have anything in the same ballpark as LIS.
QuatumScape have openly admitted that they are years away from producing a battery to even test stage (that’s if they can produce a battery at all?)
Lee Finniear, LIS CEO, said in this weeks interview that LIS are looking to move to commercialisation quickly.
LIS have independent qualifications through Deakin University, with some of the smartest brains on the planet. LIS have released data and information that is legitimate beyond question. Deakin worked on BNNT and LIS for more than a decade.
“Co-inventors of Deakin's BNNT manufacturing process Professor Ian Chen, Deakin's nanotechnology group leader; and Dr Luhua Li, Senior Research Fellow at Deakin's Institute for Frontier Materials (IFM), welcomed the outstanding result.”
https://www.deakin.edu.au/about-deakin/news-and-media-releases/articles/deakins-boron-nitride-nanotubes-bnnt-are-pure-and-industry-ready
PPKers have looked at every possibility over the past year or longer. Possible suppliers of BNNT and others making battery claims……nothing comes close.
Ask
@copperroad or @DBently……both these guys will give you straight easy to understand answers……I have found them to be very knowledgeable.As Copperroad has rightly stated many times – this is a huge pie LIS only needs a piece of it.
If you want to know the technical side ask
@wes1978….Wes is an Electrical Engineer and Auto Electrician.
@wes please let me know your opinion of QuantumScape?
LIS and PPK are both destined to be NASDAQ listed. Hedy Cray, commercial law firm background, with NASDAQ listing experience, along with a strong Human Resources background, joined the LIS Director team when the company was being shaped.
The lithium sulphur battery always had huge potential, problems always existed around the anode/cathode, OXIS Energy in the UK were on the right track in development, but they did not have the magic of BNNT. LIS appointed Stephen Rowlands from OXIS Energy as Chief Technology Officer, smart move!
Robin Levison LIS Director & PPK Chairman, check out his background – you won’t be disappointed. I have always found Mr Levison to undersell and over-deliver. No BS here!!
PPK have 20-year patents on the commercial production of BNNT. LIS is one of 8 PPK Joint Ventures.BNNT is the holy grail of materials and LIS are the only battery company globally to have access.
It is obvious that deals will be done prior to any battery being manufactured, as the market is forward looking - waiting to buy these stocks is a gamble I am not willing to take. Whether you buy LIS at $1.90 or $2.50 is not going to be that important when the share price is north of $100. PPK has the potential to be in the 100’s or 1000’s.
My strategy is to accumulate as many shares as possible NOW, I don’t care about price…..I only care where both companies sit in years to come……when this thing rips look out…..any news and BANG!!!
LIS and PPK are both severely undervalued.
IMO DYOR
I hold shares in both PPK and LIS
(20min delay)