Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

West Water Resources Stock Is An Under-The-Radar EV Battery Play

By MarketBeat.com (Jea Yu )Stock MarketsNov 25, 2020 06:12AM ET
www.investing.com/analysis/west-water-resources-stock-is-an-undertheradar-ev-battery-play-200545835
West Water Resources Stock Is An Under-The-Radar EV Battery Play
By MarketBeat.com (Jea Yu )   |  Nov 25, 2020 06:12AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

Diversified energy materials development company Westwater Resources (NASDAQ:WWR) stock has recently surged on the electric vehicle (EV) stock mania. Shares are looking to wildly outperform the benchmark S&P 500 index. As money flows into EV related companies ranging from cars, parts, charging to materials, the impact is real.

While EV leader Tesla (NASDAQ:TSLA) started the craze, it’s spread with the momentum from Chinese EV makers like Nio (NYSE:NIO), Xpeng (NYSE:XPEV) and Li Auto (NASDAQ:LI). U.S. penetration being led by Kandi Technologies (NASDAQ:KNDI) with its launch of a sub $10,000 EV, after federal and state subsidies. The common thread amongst EVs are the need for sustainable battery power to even operate the vehicles. West Water’s rare-earth minerals including lithium are the raw materials needed to power EVs. High risk-tolerant and nimble investors looking to play the EV mania can look to seek exposure at opportunistic pullback levels in West Water Resources.

Conference Call Takeaways

The Company had a Q3 a conference call on Nov. 12, 2020. Westwater CEO, Chris Jones and CFO Jeff Vigil presided over the conference call. The Company plans to operate in Germany, New York and Illinois. The Company has $53 million in cash which is enough to finance base business operations through 2022. CEO Jones states:

“Westwater has prevailed in a key decision in its case for compensation from the Republic of Turkey. Our hearing is scheduled to Sept. 21, 2021, and we request $36.5 million-plus fees.”

CFO Vigil pointed out a timeline of events that caused the Company shares to skyrocket. On Sept. 28, 2020, Tesla CEO, Elon Musk, had projected a shortage of battery materials in the next five years while EV demand grows exponentially during its Battery Day. This was followed by the announcement by Piedmont Lithium of a supply contract with Tesla for its North Carolina based lithium project. The Company entered into an agreement to sell its uranium business to encore Energy Corp in exchange for $2 million in stock and a royalty interest in the New Mexico uranium properties being sold. It enables the Company to reallocate $4.5 million annual uranium budget to the graphite business.

Executive Order Expanding U.S. Rare-Earth Minerals Production

On Sept. 28, 2020, President Trump signed an executive order seeking to increase domestic production of rare-earth minerals as a national emergency. The order directs the Interior Department to use the Defense Production Acts to speed up the development of mines. The move is aimed at reducing reliance on China for rare-metals that are critical to many manufacturing industries. This news spiked up shares of Westwater to highest levels not seen in years peaking at $14.50. The European Commission is also moving towards forming a rare-earths minerals alliance by the end of the year to also be less reliant on imports.

Westwater Battery Graphite

Westwater has created three trademarked battery-grade products: ULTRA-PMG, ULTRA-SPG and ULTRA-DEXDG. In collaboration with Dorfner Anzaplan of Germany, the Company plans to advance the development of processes needed to purify graphite concentrates to produce Westwater’s batter grade products. The Company expects its Alabama-based Coosa Project to be the first U.S. domestic processor of battery graphite materials.

Graphite Pilot Plant Program

On Oct. 9, 2020, Westwater announced the receipt of 30 metric tonnes of natural graphite concentrate at its Dorfner Anzaplan’s facility in Germany. The materials will be utilized in its pilot plant in Germany and the U.S. to produce 10 metric tonnes of three trademarked graphite products estimated by the end of Q1 2021. Westwater will conclude its Bankable Feasibility Study by mid-year 2021, which includes the final design plans for the commercial production facility from mid-2021 to 2022. The Company expects the plant to be commissioned by Q4 2022. A Provisional Patent was filed with the U.S. Patent and Trademark Office for its proprietary graphite purification technology. The shift to graphite processing for battery products makes this a compelling play for high risk-tolerant investors and nimble traders at opportunistic pullback levels.

Westwater Resources Inc Stock Chart
Westwater Resources Inc Stock Chart

WWR Opportunistic Pullback Levels

Using the rifle charts on the weekly and daily time frames provides a precise view of the landscape for WWR stock. The weekly rifle chart broke out into an uptrend on the weekly market structure low (MSL) buy trigger above $5.62 in October 2020. The massive October spike peaked out just below the $14.76 Fibonacci (fib) level as shares collapsed back down to the $3.80 fib. This sharp drop caused the weekly stochastic to cross back down but the weekly 5-period moving average (MA) support at $4.53 held firm. This bought enough time for the daily rifle chart to trigger a mini pup breakout forming a grinding uptrend already overshooting the daily upper Bollinger Bands (BBs) at $6.59.

With the weekly stochastic stalled and a high band daily stochastic, it sets up for opportunistic pullback levels at the $5.62 weekly MSL, $6.53 fib, $5.34 fib, $4.43 fib and $3.80 fib. The Company is still a developmental mining operator, so investors need to allocate accordingly for speculative potential. Upside trajectories can range from the $8.11 fib upwards to the $17.95 fib.

Original Post

West Water Resources Stock Is An Under-The-Radar EV Battery Play
 

Related Articles

West Water Resources Stock Is An Under-The-Radar EV Battery 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 Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
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.
Comments (1)
Tommi Nuutinen
Tommi Nuutinen Nov 26, 2020 10:12PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
So, how does the patent system of WWR is gonna effect my investments in ZEN graphene? Anyway, good article, now I know what I buy & HOLD next. How about CBAT?
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
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 Investing.com'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
or
Sign up with Email