Buying on the earnings "crash"

Another opportunistic buy

First let’s discuss what happened with Stem Inc. yesterday quickly. I thought their results were good from a forward looking perspective and especially with regard to the selection of Athena PowerBidder™ Pro software by Mercuria Energy Trading without any connection to Stem’s hardware solutions. That speaks volumes for me as yesterday I expressed doubt about the quality of the Athena platform relative to a Tesla offering for example. Since it’s now being purchased by third parties (SaaS recurring revenue) I’m feeling more confident about Stem’s future. Further, Stem has the incredible tailwind of solar energy/battery industry growth going forward. Many project a 10-15X in TAM over the coming 5-7 years.

In terms of market reaction, I’m not sure if we can chalk it up as a win. Initially, after being up 7% on the day it rose 17% higher after-hours (+25% on the day breifly?) when I posted a “yay” on Twitter… and then as occurred with ENVX and others the initial reaction was sold aggressively. By the end of after-hours trading it closed 8% lower. So hard to call that a win, however, that -8% after-hours disappeared today shortly into the trading session and instead of being down on earnings it was up 5-10% at various times throughout the day. So currently it’s up 3%. So I would say, it was a small win at best. An opportunity to take profits +17% when I posted about it but it was short lived. I’m in Stem for the long term so the 7% yesterday and 3%+ today is a pleasant enough outcome for now. I want to see this back above $5 however - then we can start getting excited.

Today’s purchase was actually an after-hours purchase yesterday.