Breaking News
Ad-Free Version. Upgrade your experience. Save up to 40% More details

Star Peak Energy Transition Stock: Is A Smart Energy Storage Play

By (Jea Yu )Stock MarketsDec 30, 2020 06:41AM ET
Star Peak Energy Transition Stock: Is A Smart Energy Storage Play
By (Jea Yu )   |  Dec 30, 2020 06:41AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items

Special purpose acquisition company (SPAC) Star Peak Energy Transition Corp (NYSE:STPK_u) will reverse merge with Stem. Inc., an AI-driven smart energy storage optimization platform, in Q1 2021. The stock has some powerful themes embedded into the narrative including SPAC, artificial intelligence (AI), clean/smart energy storage, ESG, and indirectly related to electric vehicles (EVs) and battery optimization technology, and rare materials. These are all keywords and themes that make up the current momentum driven money flow further accelerated by the favorable clean energy policies of President Joe Biden’s administration. High risk-tolerant investors seeking speculative exposure in Star Peak at opportunistic pullback levels.

Stem, Inc.

The underlying company to reverse merge into STPK is Stem, Inc. Stem developed the AI-powered Athena platform that performs automated energy system operations that incorporate real-time critical decision making and optimization like accurately forecasting energy demands onsite and on the grid to deliver the industry’s most accurate predictions. Using the predictive analysis, Athena performs real-time optimization across multiple applications including demand charge management, energy arbitrage, wholesale market participation and backup power. The site states, “Athena constantly makes economic tradeoffs when determining how much energy to deploy or store up for later.” Athena has over 20 patents operating a network of over 900 sites running more than 16 million hours. The Company claims to have the “Work’s Largest Energy Storage Network” with over 600+ MWh enrolled in the STEM network and over 900 sites in operation or contracted. The Company has many well-known enterprises utilizing their clean energy storage systems including Adobe (NASDAQ:ADBE) in various California locations, Bed Bath & Beyond Inc (NASDAQ:BBBY) Dignity Health Sports Park and Whole Foods Market (NASDAQ: AMZN) locations throughout California and Hawaii. The Company generated $17.28 million in GAAP revenues and (-$65.24) million in net losses for 2019.

New Revenue Streams

Athena automatically manages and optimizes client energy supply chains most notably clean energy to generate new revenue streams for companies like storing excess renewable energy (IE: solar) to participate in energy markets. It can perform energy arbitrage as well as swap out to clean stored energy when electricity prices off the grid are too high. Athena also can manage compliance with constantly changing energy policies and regulations. Athena clients average 10% to 30% monthly electric bill reductions and 35% of corporations are committed to carbon reductions.

First Mover Advantage

In the investor presentation, Stem claims to be the “First pure play smart energy storage company to go public in the U.S.” with a $1.2 trillion addressable market by 2050. The Company is the first mover AI platform operating with over 40 utilities, five grid operators with over 16MM runtime hours. Stem has a 75% market share in California BTM storage market, making it the largest network in the U.S. Revenues are projected to grow at a 51% CAGR from 2021 to 2025. The Company is ready to deploy $525 million proceeds to fund targeted high growth markets. Under the ESG theme, Stem is committed to global decommitment to decarbonization capturing this globally popular tailwind. Prudent investors looking to get exposure into a first mover smart energy management play can watch shares of STPK for opportunistic pullbacks or wait for the reverse merger to complete in Q1 2021.

StarPeak Energy Stock Chart
StarPeak Energy Stock Chart

STPK Opportunistic Pullback Levels

We use the rifle charts on the daily time frames to provide a short-term perspective for nimble trades and only the highest-risk tolerant investors to consider trading STPK shares. The daily rifle chart has been in an uptrend powered by the pup breakout and stochastic stair step mini pups driving the stochastic towards the 100-band overbought levels. Shares made an initial peak off the $23.28 Fibonacci (fib) level. The daily upper Bollinger Bands (BBs) are near the $25.33 fib. Traders should be careful chasing this one and be leery of potential daily market structure high (MSH) triggers which are the low of the lower higher candle. Prudent risk-tolerant investors and nimble traders can watch for opportunistic pullback levels at the $21.40 fib, $20.05 fib, $19.22 fib, $18.56 fib and the $17.30 fib. Potential upside trajectories range from the $25.33 daily upper BBs/fib and the $30.14 fib. Be aware this stock is pure speculation and only high risk-tolerant investors should even consider exposure. Keep in mind the stock symbol will also change once the reverse merger is completed in 2021. Less aggressive investors may want to wait for the merger to complete before taking exposure.

Original Post

Star Peak Energy Transition Stock: Is A Smart Energy Storage Play

Related Articles

Star Peak Energy Transition Stock: Is A Smart Energy Storage Play

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email