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Update for One NASDAQ- Listed Construction Material Stock– Crown Electrokinetics Corp

Nov 21, 2024 | Team Kalkine
Update for One NASDAQ- Listed Construction Material Stock– Crown Electrokinetics Corp
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CRKN:NASDAQ
Investment Type
Small-Cap
Risk Level
Action
Rec. Price (US$)

Crown Electrokinetics Corp

Crown Electrokinetics Corp. (NASDAQ: CRKN) develops and sells optical switching film, which can be embedded between sheets of glass or applied to the surface of glass, or other rigid substrates such as acrylic, to electronically control opacity (DynamicTint). The Company's technology allows a transition between clear and dark in seconds and can be applied to an array of windows, including commercial buildings, automotive sunroofs, and residential skylights and windows.

Recent Business and Financial Updates

  • Overview of Third Quarter Performance: Crown Electrokinetics Corp. (NASDAQ: CRKN), a prominent innovator in technology infrastructure solutions focused on community and environmental benefits, announced its financial results for the third quarter ending September 30, 2024. The company achieved record-breaking revenue during the period, highlighting its operational efficiency and strategic advancements across its diverse business verticals.
  • CEO’s Perspective: Doug Croxall, Crown’s CEO and Chairman, attributed the strong quarterly performance to the company's well-defined strategic direction and growing market demand for its offerings. Croxall emphasized that Crown’s diversified business model, encompassing innovative solutions across multiple sectors, is positioned to capitalize on large and expanding addressable markets. He affirmed the company's commitment to achieving profitability by 2025 and lauded the leadership team for driving innovation and societal impact.
  • Business Milestones:
    • Smart Windows: The company outlined its phased rollout strategy for Smart Window Inserts, with the initial product launch anticipated in the first quarter of 2025. This development aligns with Crown’s vision to deliver cutting-edge solutions that enhance energy efficiency and sustainability.
    • Fiber Optics: Crown secured significant customer agreements for designing and constructing fiber optic networks in Oregon and Nevada, marking a strategic expansion in its telecommunications infrastructure capabilities. These projects underscore the company’s expertise in addressing modern connectivity demands.
  • Water Solutions:
    • Slant Wells: The company commenced the installation of proprietary slant wells at a project site in Cabo San Lucas, Mexico, addressing critical water access issues in the region. Crown has also engaged additional clients in the Los Cabos area to prepare for future installations.
    • Lead Pipes: Crown’s Element 82 business secured major detection and remediation contracts, including USD 15 million in lead pipe inspection projects in Washington, D.C., and Maryland, and USD 33 million in remediation contracts for PE Pipelines.
  • Financial Highlights
    • Quarterly Results: Crown reported revenue of USD 8.0 million in the third quarter of 2024, a substantial increase from zero in the corresponding period of 2023. Gross profit reached USD 1.4 million, while operating expenses increased to USD 7.2 million, reflecting investments in business growth. The company recorded a net loss of USD 5.9 million, compared to a USD 2.9 million loss in the same quarter of 2023.
    • Nine-Month Performance: For the nine months ending September 30, 2024, revenue totaled USD 13.4 million, a significant increase from USD 0.1 million in 2023. Gross profit for the period was USD 0.9 million, with operating expenses rising to USD 15.4 million. The net loss improved to USD 15.5 million, compared to a loss of USD 19.7 million in the prior year.
    • Financial Position: As of September 30, 2024, Crown’s stockholders’ equity stood at USD 9.9 million, supported by a cash balance of USD 3.1 million. This robust financial position provides the company with the necessary resources to execute its growth initiatives.
    • Outlook and Strategic Vision: Crown reiterated its revenue guidance for the fourth quarter and full year 2024, projecting USD 9.0 million and USD 22.0 million, respectively. Looking ahead to 2025, the company anticipates revenue between USD 30 million and USD 35 million while remaining focused on achieving profitability. With its innovative solutions and strategic focus, Crown is well-positioned to deliver sustained growth and create value for stakeholders.

Technical Observation (on the daily chart):

The Relative Strength Index (RSI) over a 14-day period stands at a value of 28.94, with expectations of a consolidation or an upward momentum if the price sustains above or around USD 0.7 support level. Additionally, the stock's current positioning is below both the 50-period SMA and 200-period SMA, which may serve as dynamic short to medium-term resistance levels.  

Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario. 

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.

Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc. 

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is November 20, 2024. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level that the stock is expected to reach as per the relative valuation method and or technical analysis taking into consideration both short-term and long-term scenarios.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the New York Stock Exchange (NYSE), NASDAQ Capital Markets (NASDAQ), and or REFINITIV. Typically, all sources (NYSE, NASDAQ, or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.


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