The only reason VLNC PPS has drifted lower was because of the news that Smith would be looking for a second source and that Q1 revs would be down.
Now it is clear that the second source does not replace VLNC, and that VLNC will continue to supply important quantities of battery systems to them. Revs are not only up from guidance, but also up from earlier estimates.
In one simple press release, Kanode has bolstered confidence in the two key determinants of stock price - revenue and principal customer. These are not fluff, but rather the core of fundamentals, and show a clear road to breakeven.
And then will come Vanadium... and all bets are off!!!
Before the news of Smith/A123 second sourcing, VLNC was trading in the $1.30's.
Since then: 1. VLNC received major orders from Smith (the A123 news was probably a negotiation tactic) 2. Revenue guidance was increased by nearly 50% for Q1 3. VLNC continued to add customers and order volume in marine sector 4. All litigation has favoured VLNC's patent estate 5. We have new news on the Vanadium rollout timeline 6. With continued Smith orders, VLNC will likely achieve breakeven this year or the beginning of next
It may take a few days to correct, but we should be trading in the $1.30's or above in the next couple of days.