Charts For The Week: ABAT TEM HLX
The entirety of this article is dedicated to smaller cap names. I spent a lot of time researching this weekend some names that aren’t spoken about as much online. I think there’s good potential in the following[Claw]
1. American Battery Technology | $AMERICAN BATTERY TECHNOLOGY CO(ABAT)$
ABAT is a vertically integrated battery-materials/recycling company in the US operating across:
Recycling lithium-ion batteries.
Proprietary extraction for battery grade-materials (in development).
Currently hold unpatented mining claims in Nevada (future option).
I already hold ALB which is my large value play to hopefully ride the lithium tailwinds over the next year, but I’m trying to find a smaller cap stock in the same niche that potentially has more upside than ALB. Though not a direct competitor to ALB in anyway (lithium producer vs lithium recycler), I think there’s some nice value in ABAT.
It’s much tougher to value these kinds of companies, but any successful breakthroughs or increases in lithium prices will massively boost ABAT’s multiples. In terms of small caps, I think ABAT is definitely one of the better ones out there with DOE grants, federal support & collaborations with TSLA. I suspect if we see a turnaround in lithium prices, ABAT could be quite a quick 1-2x.
2. Tempus AI | $Tempus AI(TEM)$
TEM have guided for $1.25-$1.26B in FY25 which would be an 81% increase YoY. With a current EV of $14.2B and estimates of $1.55B in revenue in FY26, TEM are currently trading for 9.16x 2026 sales for ~24% growth next year which isn’t actually too bad for a company that recently:
Raised FY guidance.
FDA clearance for xR IVD.
Acquired Paige for $81M.
I quite like TEM at this level today. An ideal buying position is at the 0.618 fib I think but I’m not sure we get there given the recent catalysts… unless we have a macro pullback of course.
3. Helix Energy Solutions | $Helix Energy Solutions(HLX)$
HLX appeared in my “Investing Universe” tab for my paid subscribers with a NTM sales multiple of 0.76x and growth of 9% YoY making this one fairly cheap.
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