Enovix - skating on thin ice

I noticed Saul has a test position in this company and thought I would check it out.

They develop silicon-anode lithium-ion batteries that promise higher energy density and longer life. This would truly be great if it works out, but I also think the same thing about QuantumScape (QS). Right now both companies are in the very early stages and are bleeding money. Both companies had increasing losses each year since 2021. QS just got a new CEO, which caused a pop, but then they announced a secondary offering, which caused a drop. I think Enovix is also going to need more capital, and it won’t come via debt at today’s higher prices.

This seems similar to a biotech start up, if they find the magic drug, they will skyrocket, but they may run out of money before then, or maybe someone else will leap-frog them with better technology.

What about sales? This is no SaaS company with exponentially growing sales. FinViz said the have $6.2M in sales and -168M in income.

On the bright side, Oppenheimer likes it a lot…

“Enovix’s 3D Silicon Lithium-ion batteries promise to deliver higher energy density and longer-lasting performance compared to traditional lithium-ion batteries, making them a potential game-changer in various applications such as smartphones, wearable devices, electric vehicles, and other portable electronics.”

“It’s early days for this company although its cutting-edge tech has garnered significant attention and investments. In the meantime, Enovix is making meaningful strides on the production end.” (beating Q2 goals).

“Enovix disclosed that the U.S. army had put in a purchase order for BrakeFlow-enabled cells to be used for the U.S. army’s soldier central power source.”

“Lastly, the company also secured $70 million of non-dilutive local funding from YBS International Berhad that will go toward its first high-volume production line in Malaysia.”

The Oppenheimer analyst is rated 5-star and he sees a 12 month target of $36.

I could see this becoming a meme stock and going crazy, but that is not a good reason to buy. The technology is intriguing, but I have fallen down that hole before. I would choose to wait for positive earnings or a huge long-term sales announcement. If this company has a better mousetrap, waiting for them to have earnings and then holding for 10 years will still make you a ton of money.

Lest I sound too negative, I love TTD and AXON, they are number 3&4 largest holding and I had them for many years now. I also love the potential of AEHR.

Pete, who is willing to change his mind.


Thanks Pete for helping me decide to take a closer look:

Wednesday I carefully read over the conference call transcript, especially the questions and answers, (or not-answers and semi-evasions, in my opinion), and I exited yesterday morning near the opening (near $19.20 for a lot of my tiny position). I took my loss and moved on. I just didn’t want anyone else to feel “Saul’s in it so I’ll take a position”. In my opinion, it will be a long, long, long, time until they are profitable, if ever, not quarters but years.


My sense of this company is similar to Saul’s. It is possible that it might become a momentum play if you have the guts for that. Very few people are successful at timing the market. I think technical analysis is probably more appropriate if that’s the way you want to go. If so, please don’t report on this board.

I do have a tiny position in Enovix, if it goes to $0.00 I won’t suffer much of a loss. But it will force me to pay attention to the company. Who knows? They may take some large orders which would be enough for me to get more interested.