EOSE Update--Short Seller Attack AGAIN--

Dear Transformity Ultra Growth Investor,

I'm beginning to get a little paranoid--like the short-selling cartels are subscribers and then go after one of our stocks.
First Kandi--refuted and now coming back--it's still a great buy under $10.

Today another short-seller put out a "report" strangely after EOSE hit a new all-time high and basically accused them of perpetrating and Enron type of fraud.

I hope they a great lawyer (actually I don't).

Look--just like the short attack on Kandi (KNDI), we need to wait for their legal and CEO rebuttal to do this attack.

Second, the report claims the EOS Enterprises is an Enron like an out-and-out scam.

My experience with these attacks goes way back to when I knew Ken Lay the chairman CEO of Enron as an acquaintance from Aspen.
When the accusations came out he had no idea of what his financial and accounting teams were doing--THAT is when I knew something was off. We followed up and saw something was rotten in Denmark and shorted ENRON.

Fast forward to EOS and post-SPAC IPO. #1 They have already gone through due diligence from multiple SPAC sponsors, law teams, CPA auditors. They have already filed multiple SEC documents by more law teams and accountants.

IF EOS Enterprises was the scam these folks allege, it would be on the same scale as Enron and Worldcom --a VERY VERY rare event.

And don't forget the Board and the Chairman/CEO would be in jail for 20 years if they conducted such a scam.

Here is the short-sellers "report"--you can read it for yourself.

https://iceberg-research.com/2021/01/14/eos-energy-fake-customers-wont-recharge-a-dead-battery/

But just like the KNDI allegations, my strong bet is the stock flops around for a day or two, and when the point-by-point rebuke of this fantasy comes back, this will go away. If it was true, the lawyers, accountants, SPAC sponsors would have missed a giant fraud--and let me ask you this; IF YOUR HAD cooked the books at the extreme of the short seller claim, would YOU take your company public?

We hold shares--not dreaming of selling.

Update on HTOOF--same thing--some sellers reacted to a short-seller report--and our $9.25 entry point got cut nearly in half.
We loaded the boat at $5.50 area while the ignorati blindless sell--now its back to $12 and change!!!

With the mandatory jail time imposed by Sarbanes Oxley laws post-Enron, only a complete delusional nincompoop would agree to a go public in a SPAC deal. This crime has less than 1% chance of actually being correct.










Action to Take: BUY EOS Enterprises EOSE Up to $30 with $85 Target end of 2022

chart01.jpg


Source: EOSE Investor Presentation October 2020

EOSE’s battery technology is not suitable for mobile applications (EVs) but the proprietary Zinc Battery has multiple advantages over Li-ion when it comes to grid storage. Li-ion is currently over 90% of the storage market today, but EOSE WILL gain market share big time as presold production comes online for their current generation and next-generation platform to be introduced in 2021.

Here are a few articles about Zinc batteries over taking Li-ion
Meets Zinc, the Cheap Metal Gunning for Lithium Battery Crown - Bloomberg
California Sees Zinc As Likely Successor To Lithium-Ion In Energy Storage - Forbes

chart02.jpg

Source: EOSE Investor Presentation October 2020

EOSE expects to generate $50M this year, growing to over $700M by 2023. More importantly, this forecast is driven PURELY by their current orders backlog and pipeline that is over ~15 GWh. Also, the company is now very well-capitalized and can put the manufacturing capacity in place to fulfill demand. Obviously, there are many risks to EOSE achieving this forecast, but given the demand backdrop I think it is at least achievable.

Valuation: If we give EOSE the historic FCEL revenue multiple of 3.8x on the 2023 estimate, the stock is worth $52.00.
If I give EOSE the 23x multiple FCEL is currently trading on the consensus revenue estimate for 2023 ($152 million) the stock is worth $252.00!

Our EOSE $85 price target is simply 6X multiple on 2023 sales at a 25% discount.

chart03.jpg
Updates/AlertsTobin Smith