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For years, arguably most people lived under the principle of plausible deniability regarding climate change. Though renowned government agencies have long warned about rising temperatures and ecological paradigm shifts, this worrying trend essentially flew just underneath the radar. Today, prominent indicators — extreme drought, record-breaking forest fires, consistently aberrant weather — have removed all doubt.
But shifting to clean energy overnight is simply not realistic. That’s where “transitional” solar technology specialist Worksport comes into play. By providing modular solar tonneaus and energy systems for pickup trucks, Worksport helps bridge the gap between a fossil fuel-powered past and a green sustainable future.
When Did Worksport IPO?
Worksport IPO’d on August 4, 2021, closing the offering with $20 million on its balance sheet and no outstanding debts.
Worksport Financial History
By every measure, Worksport has a massive addressable market for its core business of solar panel tonneaus. In addition to fueling the company’s TerraVis modular battery power pack, they also protect truck beds from the elements and would-be thieves. Naturally, this all-in-one solution appeals to both personal pickup truck drivers and commercial fleet owners.
In the recent years heading into the pandemic-disrupted 2020, the U.S. pickup truck market enjoyed robust expansion. For instance, John Schwegman, director of product marketing for commercial and medium-duty vehicles and mid-size pickups for General Motors (NYSE: GM), noted that GM’s fleet sales were up 9% in 2018 -- a magnitude of improvement which its top rivals enjoyed as well.
Further, momentum carried into the following year, with revenue from the commercial fleet market posting a 9.2% improvement in 2019. If that wasn’t convincing enough, automotive industry data showed that in 2020, pickups outsold passenger cars by a little over 17,000 units -- a first in American history. Logically, this sales rally expands the potential playing field for Worksport.
It’s important to keep this context in mind before you dive into the solar tech firm’s financial statements. On the surface, the headline numbers are not exactly encouraging. In 2020, Worksport generated revenue of $346,144, which was down 82% from the $1.93 million posted in the prior year. As well, a net loss of $1.19 million last year -- expanded significantly from a loss of $359,034 in 2019 -- will raise eyebrows.
However, as management stated in its prospectus for uplisting to the Nasdaq, the COVID-19 crisis gutted Worksport’s sales in the first half of 2020. But the one-off nature of the pandemic, along with a healthy balance sheet -- $20 million in cash and equivalents and zero long-term debt -- places Worksport in an advantageous position once society normalizes.
For WKSP stock, on Aug. 4, it traded on the Nasdaq exchange. Worksport’s management team announced the pricing of its underwritten public offering of nearly 3.3 million shares at a price of $5.50 per each. Further, the company “will effectuate a reverse split of its issued and outstanding common stock at a ratio of 1-for-20.”
At the present juncture, the overriding narrative for renewable energy solutions is patently obvious. According to the U.S. Energy Information Administration, burning a gallon of gasoline produced about 19.5 pounds of carbon dioxide (CO2). In 2019, CO2 emissions from aviation and motor gasoline combustion tallied approximately 1.14 million metric tons or 22% of total domestic energy-related CO2 emissions. With climate impact worsening, society cannot afford to live in blissful ignorance.
However, quitting combustion-based power cold turkey, while desirable, is completely unrealistic. Even if individuals and enterprises wanted to make the hard pivot, economic considerations would dampen such sentiment. But that’s also why Worksport has such tremendous potential. As an additive renewable energy solutions provider, the company’s solar-panel tonneaus and TerraVis power pack easily integrate into existing vehicles and infrastructure. Particularly, this circumstance is advantageous for fleet owners, who can partake in green applications without a full-sized commitment.
In addition, it’s critical to point out that the modular nature of Worksport’s product lines make them future-proof. Should personal drivers or fleet owners decide to electrify their pickup-based transportation, the company’s solar tonneaus can provide secondary power, extending the overall range of the underlying vehicle.
Finally, Worksport offers incredible utility for our new normal paradigm. For instance, camping and outdoor activities jumped in popularity due to COVID-19 concerns, subsequently boosting the TerraVis power pack’s relevance. Further, a Bloomberg report in 2018 noted rising demand for environmentally friendly generators. Since climate awareness has become such a vital topic today, you really couldn’t ask for a better fundamental backdrop for Worksport.
How to Buy Worksport (WKSP) Stock
Having gained legitimacy, both retail and institutional players will have WKSP stock on their radar. Thus, it’s time to brush up on how to buy stocks if you haven’t done so already.
Step 1: Pick a brokerage.
Before you can partake in the Worksport uplisting, you must choose a brokerage to do business with. Because online brokers have standardized key financial incentives such as commission-free trading, you should focus on substantive attributes like functionality.
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Step 2: Decide how many shares you want.
Long-term success in the market involves smart money management, with the share count being a primary factor. Select a number that gives you solid reward potential if the target stock rises in value but won’t leave you distressed should it tumble.
Step 3: Choose your order type.
Before placing your order, review the below-market concepts.
- Bid: The maximum price a buyer will offer, the bid is always lower than the ask.
- Ask: The minimum price a seller will take, the ask is always higher than the bid.
- Spread: Principally the bid-ask price difference, the spread also provides information about market liquidity and risk. Narrower spreads indicate strong negotiations between bulls and bears, thus implying higher liquidity and lower risk. Wider spreads have the opposite implication.
- Limit order: To buy or sell stocks at a specific price, place a limit order. This order type gives you maximum pricing transparency but no execution guarantees.
- Market order: In contrast, market orders guarantee fulfillment (during normal session hours) but at the current rate, which may fluctuate by the time your order goes through.
- Stop-loss order: A risk-mitigation measure, a stop-loss order automatically exits your position at either a predetermined price or anything lower than it.
- Stop-limit order: To remove vagaries regarding your exit pricing (especially during extremely volatile market sessions), stop-limit orders only fulfill at a predetermined rate. However, such orders carry the same non-fulfillment risk as limit orders.
Step 4: Execute your trade.
To execute a market order, follow these steps:
- Select your action type (buy or sell).
- Enter the shares you want to acquire (or sell).
- Hit the Buy (or Sell) button.
Apply the same sequence for limit orders but remember to include your desired execution price.
Green Solutions That Truly Work
While many companies in the renewable energy and clean transportation space aim for the stars, such lofty expectations force investors into a binary risk spectrum: either the enterprise succeeds or it fails.
With WKSP stock, stakeholders have a much more palatable risk-reward profile. Through its modular and integrated solar power products, Worksport provides ready-made solutions for already-existing platforms. This additive business model affords the tech firm greater credibility than purely aspirational investments.