| First, let’s preface this report with the 14-day RSI on the chart currently flashing an overbought signal at 79.8 however, the stock chart only has about three weeks of history due to the IPO being so recent. That being said, if we do get a dip, it may be a great opportunity.
There is only 4.7M shares in the public float and everybody seems to want a piece of the action.
LASE also looks undervalued compared to the competition.
Good day everyone,
We are beginning to see more companies with innovative technologies disrupting the way we have always done things. Laser Photonics Corporation (NASDAQ: LASE) the developer of Cleantech laser systems for laser cleaning and other industrial laser technologies is one such company.
Current price $4.91/share (at market close 10-14-22)
LASE just completed their IPO last month and began trading on the NASDAQ. LASE shares are in play, with the company’s market value moving from $14.5M to $38.6M last week and trading volumes moving from thousands to millions of shares.
Laser technology is growing at a substantial rate and the sector is competitive. Lasers are used in a variety of applications and LASE offers the equipment and technology to compete in a complete range of applications from etching, scribing, cleaning, semiconductors, 3D metal printing and more.
LASE is growing at a good clip. FYE 2020 revenues were $2.15M, FYE 2021 revenues were $4.19M, and H1 2022 revenues are $2.56M. The company is currently generating profit, and levered free cash flow. Many investors, believe LASE has just moved into the big leagues with orders from the U.S. Navy and Coca-Cola for laser cleaning equipment.
Just this past Friday, the company issued a press release announcing they are implementing an aggressive hiring campaign due to a sizeable increase in leads and inquiries. The press release even included a link to connect with potential sales employees Careers-Laser Photonics. That sounds like a company that knows its going to grow fast.
Now the question is, how high will the LASE market value go? The deeper I dove into LASE’s technology, the more I began thinking that this company could skyrocket. While the company operates with equipment in five distinct markets, I first want to talk about the company’s laser cleaning technology because Coca-Cola bought it to clean manufacturing equipment and the U.S. Navy bought it to clean submarines.
Did you know that the U.S. Navy spends $22 billion annually to control corrosion across the fleet. I had no idea. In the past, their cleaning methods have included noxious chemicals, scraping tools, and sand/pellet blasting equipment. But now, they just gave LASE an order, for delivery this month, of an LPC-1000CTH CleanTech Laser Blasting System with an integrated water chiller. The chart below shows how LASE sees the current North American cleaning market of $48B waiting to be disrupted.
I’ve included a photo of the unit below. but you need to watch the video linked here. It’s amazing and oddly satisfying to watch this unit work just lasering corrosion off things.
Coca-Cola just bought the CleanTech Handheld LPC-50CTH Laser, an air-cooled pulse laser system which looks like the unit pictured above. CEO Wayne Tupuola commented on Coca- Cola’s use of the LASE unit saying, ” by removing corrosion from its plastic bottle molds, we are helping increase plastic bottle manufacturing yields and expanding the life of the molds used in this process. With our foot in the door, we can now focus on further penetrating similar and new use cases within the organization.”
LASE has a dozen different laser cleaning models. I just discussed two of the handheld ones. LASE also has cabinet style and robotic laser cleaning units. Laser cleaning removes paint, contaminants, rust, and residues, and leaves the substrate untouched.
I said above that LASE offers a ground floor market value opportunity. Let’s look at the market value of some other Laser companies:
IPG Photonics (IPGP) MV $4.2B
Cyber Optics (CBYE) MV $399M
Laser Photonics (LASE) MV $38M
nLight (LASR) MV $433M
NeoPhotonics (NPTN) MV $535M
Clearly LASE has room to grow its value. According to Grandview Research, the global laser processing market size was valued at $17.48 billion in 2021 and is expected to expand at a CAGR of 9.1% from 2022 to 2030.
I said above that LASE offers equipment for five different applications. So far, we’ve talked about laser cleaning, and I believe the company’s breakthrough revenues will come from that application. The rest of the company’s product line is in three diverse categories (1) Industrial products, (2) Hi-Tech products, and (3) OEM Laser parts.
Industrial products include laser machines for cutting, engraving, marking, and 3D metal printing.
Hi-Tech products include machines for scribing, glass cutting and scribing, and equipment for semiconductors.
OEM parts include everything from high powered lasers, controllers, and accessories.
I will dive deeper into the LASE product line in our full report that’s forthcoming and you can also check the full line of LASE products out at the company website.
By initially focusing on the market for laser cleaning equipment, LASE has an opportunity to be the leader. Conditions in the regulatory and labor environment are creating much of the demand for laser cleaning as it is cleaner, safer, and more effective than traditional industrial cleaning methods.
There are only 4.76M shares available in the public float. I believe LASE is going to experience phenomenal near-term growth.
LASE Statistics:
FYE is December 31st, MRQ is June 30, 2022
Outstanding shares 7.88M
Shares in float 4.76M
Insider ownership 58.5%
Revenues (ttm) $4.87M
Levered free cash flow (mrq) $1.18M
Started NASDAQ trading September 30, 2022
Full report on LASE coming soon.
As always if you love the stock help spread the word.
The Traders News Group |
