Singapore-based electric vehicle (EV) battery specialist noco-noco (NASDAQ:NCNC) is in the news on Wednesday thanks to a blisteringly strong performance. NCNC stock jumped more than 140% today before paring back much of the gains. Still, shares remain significantly elevated thanks to a pair of potentially positive news items.
First, a filing with the U.S. Securities and Exchange Commission (SEC) reveals that nono-noco appointed Koji Ito as its Chief Product Officer, effective Aug. 1. In this role, Ito will provide “strategic management” of the company’s X-SEPA separator manufacturing process. Notably, Ito began his career at Toyota (NYSE:TM), where he helped facilitate “improved factory working conditions and production efficiency.” X-SEPA refers to a groundbreaking battery technology that yields a long lifespan and high heat-resistant performance.
Second, in addition to the new hire, noco-noco revealed that it has requested a hearing to appeal a delisting determination issued by the Nasdaq on July 19. While NCNC stock may be tied to a relevant industry, it also carries a market capitalization of around $40 million. However, by staying listed, noco-noco would greatly improve its visibility.
NCNC Stock Is Fundamentally Attractive But Technically Risky
On the fundamental side — and ignoring critical financial data — NCNC stock appears attractive in some ways. After all, in order for EVs to become further integrated into the mainstream, battery technology has to improve. This broad directive involves an entire spectrum of advancements, from enhancing the infrastructural footprint to improving individual battery capacities. Potentially, noco-noco could help with the latter.
Additionally, it’s worth noting that NCNC stock isn’t just exclusively tied to EV batteries. The firm also focuses on energy storage systems that can be used for a variety of applications. Per the company’s Form F-1 disclosure with the SEC, noco-noco engages in carbon abatement solutions and carbon credit sales. Therefore, the entity aims to be a holistic player in the global decarbonization initiative.
However, the main issue with NCNC stock is the extreme volatility. With today’s big move higher, shares are up 50% on a year-to-date (YTD) basis. Since the company’s August 2023 public debut, though, shares have hemorrhaged more than 80% of value.
Adding to concerns, noco-noco is a pre-revenue enterprise. With the entity being a clear nano-cap play, investors should be extremely cautious when it comes to NCNC stock.
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On the date of publication, Josh Enomoto did not have (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.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
