EOSE - Eos Energy: Bears Dilution And The Energy Storage Opportunity

2024-03-11 09:53:35 ET

Summary

• Eos Energy's stock is at risk of falling below the $1 minimum requirement for a NASDAQ listing.
• The market is pricing in significant credit risk with high short interest at 28% of EOSE's diluted weighted average shares outstanding.
• A growing commercial pipeline and potential government support form reasons to be bullish, but liquidity and dilution issues pose significant risks.

Eos Energy ( EOSE ) currently sits just 4 cents above the $1 minimum requirement for tickers listed on the NASDAQ following a sustained collapse in its common shares since the long-duration energy storage upstart completed its go-public SPAC transaction in November of 2020. Short interest in the ticker is high at 46 million shares, around 28% of EOSE's diluted weighted average shares outstanding of 165.2 million at the end of its fiscal 2023 fourth quarter. EOSE's relentless downward price action implies the market materially ramping its pricing of a credit default event....

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