KULR Technology Group Inc. (NYSE American:KULR) has seemed like a good candidate for “the next big thing” in the electric vehicle and energy storage space for most of the past year, but the stock still hasn’t yet really broken through as a splashy retail investor favorite in the space.
Instead, the company keeps making strong strides in a niche with little competition while the stock continues to fly under the radar with the retail crowd.
However, as 2022 gets into gear, that could finally be starting to change.
One key metric that allows us to see under the surface is “relative strength”, or how well the stock is faring against other stocks in the same market space. William O’Neill, investing legend and founder of the CANSLIM approach popularized by Investor’s Business Daily, swore by this strategy.
Relative Strength analysis is particularly useful when analyzing a stock in a group that has been suffering declines over a period of weeks or months, as has been the case for the EV space since October 2021. When viewed through this lens, KULR may in fact be emerging as a star already.
Shares of KULR have gained over 12% since mid-October. That compares with steep losses over the same period in Rivian Automotive Inc. (Nasdaq:RIVN), Albemarle Corp. (NYSE:ALB), Piedmont Lithium Inc. (Nasdaq:PLL), BYD Co. Ltd. ADR (OTC US:BYDDY), and QuantumScape Corp. (NYSE:QS), and sideways movement in Lucid Group Inc. (Nasdaq:LCID) and Tesla Inc. (Nasdaq:TSLA).
In fact, in a list of the top traded 21 stocks with operational ties to the electric vehicle and lithium battery themes, only KULR and Sociedad Quimica y Minera De Chile S.A. ADR (NYSE:SQM) have performed well during the past four months.
If the EV and Lithium Battery space finds support and regains momentum the way it did last year in March, KULR could be poised to take a leadership role.
Big Institutional Buying
At the same time, KULR Technology Group Inc. (NYSE American:KULR) has been picking up some very important new fans.
According to data from fintel.io, the stock has seen significant interest from some of the top institutional investors in the world over recent months, including over 700k shares purchased by Blackrock, Inc., over 425k shares purchased by Geode Capital Management, LLC, and more than 140k shares picked up by Morgan Stanley.
Seeing these heavyweights come on board could be another very strong signal of an under-the-radar lift-off in progress for KULR. Generally speaking, big institutional buying is an important factor in separating the wheat from the chaff among small cap stocks, and it often represents a key catalyst early in the emergence of a new top momentum favorite.
Could that be the case for KULR now? Based on the company’s recent announcements and its overall progress toward actualizing its potential, that story would make a lot of sense at this point.
The Emergence of KULR
KULR Technology Group Inc. (NYSE American:KULR) has been building the technological foundation for its moment in the spotlight for three decades.
The company offers lithium-ion battery thermal runaway shields, fiber thermal interface materials, phase change material heatsinks, HYDRA TRS battery storage bags, internal short circuit devices, and CRUX cathodes. Its technology in this domain has earned numerous government contracts and is trusted by NASA, with KULR parts on the Mars Rover 2020 Perseverance and the International Space Station.
KULR added to this strong narrative with a recent announcement that it has received an initial order totaling approximately $500,000 for its passive propagation resistant battery systems from the Lockheed Martin Corporation (NYSE:LMT). According to the release, this initial order is for immediate delivery and is the starting point in the partnership as LMT leverages KULR’s technological advancements in PPR energy products for its Advanced Energy Systems.
KULR’s PPR energy products include the Thermal Runaway Shield, the Internal Short Circuit, its full suite of proprietary battery design and testing methodologies, as well as the battery cell screening and monitoring system KULR developed for its aerospace and U.S. Department of Defense customers.
This news sits alongside the company’s even more recent announcement that it has joined Clarios – the world’s largest auto battery producer – in the U.S. Department of Energy’s lithium-ion battery lifecycle initiative to develop the manufacturing and reuse of lithium-ion batteries and their chemical elements in the United States for the purpose of domestic national interest.This is a huge story for the company, and it is progressing well: Clarios just announced this month that this project is advancing through the DOE recycling prize competition using KULR’s Safe Case for the battery transportation logistics portion of the competition.