New Trade for September 8th, 2023

Although the broad market continues to be driven by macro uncertainties, small-cap stocks have performed well thus far in 2023.  The small-cap Russell 2000 Index has beaten the broader market this year, with a gain of approximately 7%, outperforming the Dow’s 4% gain. 

Stocks with small market capitalizations are generally less correlated to the performance of larger companies and can provide an additional layer of diversification for investors with a high tolerance for risk.  Considering the explosion in some of the mega-cap tech names now is a particularly good time to consider adding to your small-cap position. 

Today we’re focusing on an under-the-radar small-cap opportunity with ample room for growth.  

Microvast Holdings, Inc. (MVST)

Headquartered in Stafford, Texas, Microvast Holdings, Inc. designs, develops and manufactures various Li-ion battery solutions for electric vehicles and energy storage systems. The company’s continued focus on R&D and technology investments offers improved battery performance at highly competitive prices. Microvast’s MV-C Gen 4 high-energy lithium-ion battery packs have been specifically designed for commercial vehicle applications, offering a high energy density of 53.5Ah, a long cycle life of 5,000+ cycles, and a modular pack design for easy installation. 

Microvast’s high-performance battery technologies provide the required high energy density, enabling us to deliver the high power and performance our industrial vehicles require to move heavy loads and perform demanding industrial applications,” explained Sven Woyciniuk, Head of Electrical Engineering at MAFI & TREPEL.  

Analysts are only starting to take notice of MVST, with only three covering the stock. Nonetheless, both analysts see the stock as a Strong Buy and see a median increase of nearly 300% over the next twelve months. Microvast is a speculative play and may not be for everyone. Investors with a high tolerance for risk may want to consider this ticker for potential 3x gains.     

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