RMO Stock Alert: Romeo Power Announces Huge Growth Plans

  • Romeo Power (RMO) stock is trending for a second straight day.
  • The electric vehicle (EV) battery company recently disclosed that it is nearly finished transitioning to a new factory.
  • Romeo expects its new battery plant to facilitate growth.
An image of a neon EV battery
Source: Illus_man/Shutterstock

Romeo Power (NYSE:RMO) is trending again after the electric vehicle (EV) battery-pack maker announced a development involving its new plant.

Specifically, Romeo Power disclosed yesterday that it is nearly finished transitioning to a new factory. Located in California, the plant will facilitate growth and “enhance the quality and cost-effectiveness” of Romeo’s offerings. The company says the factory is “already supporting battery pack and technology development.”

Romeo Power CEO Susan Brennan elaborated:

“We have a clear understanding of the electrification needs in Off-Highway and Marine applications, and we are well prepared to deliver our prestigious battery packs to accelerate the future of these sectors.”

RMO stock is currently down more than 11% despite the news.

RMO Stock and Further Developments

What else is going on with RMO stock?

On June 10, Romeo disclosed that it had “received a non-compliance letter from NYSE” because its share price had dropped below $1. That puts it in violation of New York Stock Exchange rules. Currently, RMO stock trades around 56 cents.

That’s not all, though. On May 9, the battery-pack maker announced first-quarter results. Romeo generated $11.6 million of revenue in Q1, meeting expectations. In the report, Romeo added that it had a backlog of $412 million as of the end of Q1.

Finally, the company announced on May 6 that it has been chosen to provide lithium-ion batteries for an unamed U.S. EV manufacturer.

Last year, Romeo went public through a special purpose acquisition company (SPAC) merger. Its current market capitalization is $85 million. On average, analysts expect the company to report earnings per share (EPS) of 7 cents this year and an EPS loss of $1.21 in 2023. Average top-line estimates call for revenue of $46 million in 2022 and $118.5 million in 2023.

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On the date of publication, Larry Ramer did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Larry Ramer has conducted research and written articles on U.S. stocks for 15 years. He has been employed by The Fly and Israel’s largest business newspaper, Globes. Larry began writing columns for InvestorPlace in 2015. Among his highly successful, contrarian picks have been PLUG, XOM and solar stocks. You can reach him on Stocktwits at @larryramer.

Article printed from InvestorPlace Media, https://investorplace.com/2022/07/rmo-stock-alert-romeo-power-announces-huge-growth-plans/.

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