(Asx: MNS) | Magnis Energy Technologies

Nov 19, 2021

Sentiment: Sideways

Type of Trade: High Growth

Industry: EV(Electric Vehicles) - Lithium Battery Manufacturer

Sector: Industrials

Sector: Industrials | Industry: Electrical Equipment & Parts

Risk: High | Speculative Stock

Magnis Energy Technology is a battery technology company engaged in the manufacturing and sale of lithium-ion battery (LIB) cells. The company’s operating segment includes Lithium-ion Battery Investment USA; Lithium-Ion Battery Investment Australia and Graphite Exploration and Development Tanzania. It generates maximum revenue from the Graphite Exploration and Development Tanzania segment. The company aims to become a leading global producer of next-generation green credentialed Lithium-Ion Battery (LIB), enabling the future energy requirements of the world, in another words meeting demand.

Magnis has 33% ownership on iM3TSV Lithium-ion Battery Plant to be located in Townsville as well as

Main Highlights of the company at moment

✅ Potential Offtake regarding the Graphite projects

✅ Estimate commencement of production in 2022, potential to be one of top producer of Lithium-ion battery in USA with New York based iM3NY Battery Plan.

✅ New York Plan Status is 17.85% complete.

✅ Additional binding contract from US Government supplier for US$74 million over 4 years, bringing the total minimum binding sales agreement close to AU$ 1Billion.

✅ Company has recently received $110M funding.

Sensitive information that could make the SP move within incoming months:

✅ Market updates about the progress of iM3NY

✅ Offtake deals and other potential commercial binding contract deals.

✅ Offtake singed with Omega Seiki in October. Omega Seiki Mobility is an Indian electric vehicle manufacturer that is developing its own line of commercial EVs primarily deployed with e-commerce for last-mile delivery. 

BG Trading Analysis

After we have successfully traded MNS twice with combined profit of over 80% with our VIP Members we see another great opportunity to enter in MNS.

Provided the company’s interest project in New York is going to start producing in early 2022, it put MNS in one of our favorite speculative stocks to go with in the sector, giving us more security and providing solid upside.

SP is currently trading 40% below its 52 weeks (just reached a month ago), the stock sunk lead by some misleading allegation, followed by the quite resignation of some board directors. Traders and investors must have in mind a exit plan, if is for the short term or for the long term. If have an investment portfolio is not exposed to lithium, a key metal in the batteries which power electric vehicles (EVs), then consider the price effect on a commodity said to be heading for a “perpetual deficit.”

Lithium prices have risen sharply since February and we do not believe it is temporary. With the demand increasing exponentially for battery supply, it is a certainty that supply is going to be well behind the demand until the production meets, it puts Magnis energy, which has its battery plant 40% completed in New York in excellent position to buy despite the mess of the board.

Singed offtake agreements bring instant revenue and we believe it is just matter of time for more signed agreements to be announced. (This is a variable that need to be checked in order to bring sustainability to the share price)

Entry Details:

✅ Buying MNS under between 44.5-50c (at SMA) at technically fair price. (Best buying at the SMA (44.5), nevertheless we see value already under 50c.

✅ Potential for a big jump on SP during the next few months as New York Plan is ongoing development.

✅ Fundamentals of the Company remains the same despite some board resignation. New York Plant is 40% completed. ENTRY

Entry: 48c or under

Target: 74c | 50% Profit targetStop loss: under 40c

Strategy: BG Trading *bought at the hypothetical support 5% above the SMA (just as last time).

Lead time: 1 to 3 months.

Stop Loss: under 40c

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