While 2020 will forever be known as the year of the novel coronavirus, history could one day also regard it as the catalyst for the green revolution. With the new normal forcing a rethink on our established habits, many turned to electric vehicles and solar power. Though incredibly popular, green technologies have their limitations. Regarding the latter, they’re ugly. However, SolarWindow Technologies (OTCMKTS:WNDW) may have a solution, which explains the meteoric rise of WNDW stock.
And what a solution it is! One of the biggest problems with solar energy is how much space such systems consume for how relatively little power they produce. Please don’t get me wrong – this isn’t a knock against the solar industry. Rather, it’s simply a matter of science. As the Brookings Institution explained, fossil fuels are difficult to quit because of their remarkable energy density.
True, combustion-based energy is inefficient, resulting in a ton of waste (carbon emissions). However, one gallon of gasoline is enough to power a typical sedan 20 to 30 miles or more. You’re just not going to get that kind of energy density with renewable sources. Therefore, to make up for this scientific reality, solar energy providers must get creative with their real estate. The fascination with WNDW stock, though, is that the underlying company promises a new way forward.
Rather than having solar panels on your roof that completely ruin the aesthetic appeal of your home, why not have solar power facilitation integrated into everyday objects, such as windows? With SolarWindow’s electrified liquid coating, such fantastical notions are closer than ever to reality. Now, any glass portal to your home is a potential platform for solar power integration.
As you might imagine, SolarWindow’s applications extend beyond residential areas. For instance, applying the electrified coating to car windows can improve an EV’s range, making them more practical and accessible. Further, urban areas can be completely transformed – just look at all the windows on those skyscrapers!
Fundamentally, WNDW stock should be a no-brainer. So, why does it seem like you must use your brain before diving in?
WNDW Stock May Be Too Good to Be True
Growing up, I’ve always heard the phrase, if something is too good to be true, it usually is. Of course, this doesn’t apply to everything. For instance, some cryptocurrencies are too true to be good. But that’s a different story.
For WNDW stock, it pays to be skeptical. I’m not saying that you should short the shares or avoid them altogether. But before you initiate a position with something other than speculation money, you must ask a pointed question: if this technology is so groundbreaking, why is WNDW still trading in relative anonymity in the over-the-counter market?
If you go to SolarWindow’s website, you’ll notice a message: these products are under development and not currently available for sale. In my view, that’s short for this innovation isn’t yet economically viable.
As my InvestorPlace colleague Dana Blankenhorn pointed out, the business underlining WNDW stock is distinct but not unique. As he quite rightly stated, the solar electric window arena is awfully competitive:
ClearVue Technologies (OTCMKTS:CVUEF), which lists in Australia, sells glass integrated with solar cells. They claim their design generates 30 watts per square meter of glass. Ubiquitous Energy, based in San Francisco, has a similar idea. Solarmer is working along the same lines, using perovskites. Sharp (OTCMKTS:SHCAF) of Japan showed semi-transparent solar panels back in 2012.
That means the race is on to the market. A Seeking Alpha author, looking at the situation in March 2019, didn’t give SolarWindow much of a chance. The company needs to scale production, find partners in the commercial glass sector, convince developers to use it, then wash, rinse and repeat.
Further, I think there might be some sleight of hand involved with WNDW stock. On the company’s website, the emphasis is on its technologies’ potential; we’re talking applications for unmanned aerial vehicles, various transportation modes, housing and infrastructure, you name it. But there’s not so much emphasis on cost structures.
For instance, solar glass is awesome until it breaks. And that’s not a zero-probability event. Whether some kid throws a baseball into your window or a loser breaks into your car, glass breakage occurs all the time. But how much would that repair bill be if that glass was integrated with solar power technologies?
A Great Idea That May Be Ahead of Its Time
Given its volatile price chart history, I’m not going to chase the momentum in WNDW stock, I can tell you that right off the bat. If I were to bet on shares, I’d wait for the price to drop back to its support line, roughly around $3.50.
Indeed, if you pull up SolarWindow’s lifetime chart, every massive peak has been followed by a quick deflation. Yes, our society has become green crazy over the past several months. However, I don’t know if we’re that crazy to take a shot at its peak.
But if WNDW stock came down some, I wouldn’t necessarily be against a speculative position. Ultimately, SolarWindow is a brilliant idea. I just think it’s coming a little ahead of its time. Until the technology makes economic sense, WNDW is mostly a “casino” play.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article.
A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare.