The Federal Communications Commission made headlines last week with its first-ever approval of a wireless, “power-at-a-distance” charger. Created by Energous Corp (NASDAQ:WATT), the WattUp Mid Field transmitter is able to charge devices at a distance of up to three feet. WATT is currently the first company to achieve charging devices both at contact and at a distance.
This is big news for the industry and investors were clearly happy, too, as WATT stock shot up over 200% on the day of the announcement.
An analyst even came out and predicted that the new charger will be available this quarter and could generate as much as $169 million in revenue this year.
But as always, the good news for WATT stock was also met with skeptics — remember, for every buyer in the stock market there is also a seller.
One of the more well-known short-selling firms followed last week’s positive announcement with negative comments that sent WATT stock down 38%. I don’t focus too heavily on these kinds of comments, though, as short-selling firms are often just looking for publicity and doing nothing more than pumping their own books.
Is It Time to Put the Breaks on WATT Stock?
Energous is showing off its products at the International Consumer Electronics Show in Las Vegas this week, and that has helped WATT stock bounce back a bit from the one-day sell-off.
While the ultimate upside for this company is based on the actual launch of the Mid Field transmitter, the next huge move in the shares is likely to come from approval from its follow-up product — the WattUp Far Field transmitter. This device will have the capability of charging devices up to 15 feet away and could be a real game changer for both the company and the industry.
I am not a buyer of WATT stock today, mainly because its movements will be heavily based on news, analysts’ opinions and rumors in the coming weeks. However, I do plan to keep an eye on Energous.
Once we know when the Mid Field transmitter will be launched and the stock price settles down a bit, it could be a huge buying opportunity ahead of another potential FCC approval.
Matthew McCall is the founder and president of Penn Financial Group, an investment advisory firm, as well as the editor of FUTR Stocks and the ETF Bulletin. Matt just launched two new investment advisories focused around the “next” generation investing theme. His trademark three-prong investing approach targets the mega-trends old Wall Street is missing out on. Click here for more information on the “NexGen” Experience.