On capital intensity I believe e-Bloc has $50-60M of revenue capacity today and management has said they're working to make things more efficient to handle more volumes so I expect little capital to be spent there.
On e-Boost is where you're more likely to require capacity expansion, this is from a recent award press release:
"The receipt of this order, combined with the current backlog for Q1 2025, positions the Pioneer eMobility business unit for significant growth in 2025, exceeding its expected 2024 performance. To support this expansion, the business unit will form strategic, geographically aligned partnerships with national manufacturing firms, thereby increasing production capacity and enabling Pioneer to meet growing demand while avoiding costly facility expansions and potential production delays or disruptions."
I think this is a pretty capital light way to expand capacity, by using contract manufacturers to build the less value added parts of the system, at the end of the day the value is in the design.
On cash conversion going forward I think there's a small amount of maintenance capex, nothing crazy just a standard amount for an industrial business, and ex working capital I think cash conversion will be pretty clean since they don't have debt, and they have NOLs so will pay little in taxes.
Thank you! Yes I own a good chunk, as of today it's around 15% of my portfolio and my cost base is anywhere between $4.37-4.90 depending on the account.
Love this one despite the continued selling. I have 10k shares at $4.50, so a bit under water now. My earlier thoughts were this could be $8 by year-end. Let’s see if they execute in H2 and if so then is quite possible for upside to my number.
Secondly and slightly off topic is TSSI you mentioned. They recently doubled staff in last qtr. Let’s just say the rumors are they are working with Musk thru Dell. Their CEO, who was recently hired, is from Dell. This can easily be double digits by next year if it plays out. Note that TSSI would not disclose the big client. Their liquid cooling data center product will increase sales. Anyways I would do more due diligence and reconsider your sale. This next qtr should see huge increases as this new business was only active for a single month in the last qtr as they beat numbers. You probably noticed the related spike in price. Good luck and go PPSI.
What do you think are their advantages versus other Fast-Charging EV mobile solutions such as Heliox (Siemens), EvoCharge, or Evesco? The fact that they have the capacity to combine e-Boost with their Services arm and provide custom solutions for larger customers? Thanks
Thanks for the writeup. Does e-boost come in a big enough size to power a significant fraction of a data center on its own? I would think that would have to be huge, but...I don't know.
No, it is focused on EV charging (fleet management such as electric school busses, off-grid recreational vehicles, etc.) e-block, on the other hand, provides power solutions for data center beyond power gen... it allows them to master power distribution, control power costs from multiple sources, etc. Distributed power management is a huge opportunity IMO.
Thanks for a great write-up. Any thoughts on capital intensity and cash conversion going forward?
Thank you!
On capital intensity I believe e-Bloc has $50-60M of revenue capacity today and management has said they're working to make things more efficient to handle more volumes so I expect little capital to be spent there.
On e-Boost is where you're more likely to require capacity expansion, this is from a recent award press release:
"The receipt of this order, combined with the current backlog for Q1 2025, positions the Pioneer eMobility business unit for significant growth in 2025, exceeding its expected 2024 performance. To support this expansion, the business unit will form strategic, geographically aligned partnerships with national manufacturing firms, thereby increasing production capacity and enabling Pioneer to meet growing demand while avoiding costly facility expansions and potential production delays or disruptions."
I think this is a pretty capital light way to expand capacity, by using contract manufacturers to build the less value added parts of the system, at the end of the day the value is in the design.
On cash conversion going forward I think there's a small amount of maintenance capex, nothing crazy just a standard amount for an industrial business, and ex working capital I think cash conversion will be pretty clean since they don't have debt, and they have NOLs so will pay little in taxes.
Hope that helps!
Excellent write up. Assume you own. What is your average price and what is the weighting in your portfolio? Thanks.
Thank you! Yes I own a good chunk, as of today it's around 15% of my portfolio and my cost base is anywhere between $4.37-4.90 depending on the account.
At 15% that makes it my largest position
thank you. Very high conviction!
Love this one despite the continued selling. I have 10k shares at $4.50, so a bit under water now. My earlier thoughts were this could be $8 by year-end. Let’s see if they execute in H2 and if so then is quite possible for upside to my number.
Secondly and slightly off topic is TSSI you mentioned. They recently doubled staff in last qtr. Let’s just say the rumors are they are working with Musk thru Dell. Their CEO, who was recently hired, is from Dell. This can easily be double digits by next year if it plays out. Note that TSSI would not disclose the big client. Their liquid cooling data center product will increase sales. Anyways I would do more due diligence and reconsider your sale. This next qtr should see huge increases as this new business was only active for a single month in the last qtr as they beat numbers. You probably noticed the related spike in price. Good luck and go PPSI.
What do you think are their advantages versus other Fast-Charging EV mobile solutions such as Heliox (Siemens), EvoCharge, or Evesco? The fact that they have the capacity to combine e-Boost with their Services arm and provide custom solutions for larger customers? Thanks
Thanks for the writeup. Does e-boost come in a big enough size to power a significant fraction of a data center on its own? I would think that would have to be huge, but...I don't know.
No, it is focused on EV charging (fleet management such as electric school busses, off-grid recreational vehicles, etc.) e-block, on the other hand, provides power solutions for data center beyond power gen... it allows them to master power distribution, control power costs from multiple sources, etc. Distributed power management is a huge opportunity IMO.