Patient Investor
Real Estate Developer, Public & Private Equity Investor Since 2016
Eos Energy warrants caution near term because it is funding its Frontier Power USA stake with a second equity raise. A registered direct offering with warrants adds to the planned rights offering, growing the share count from both sides with the stock near $6, far below its $19.86 high. The strategic case holds: Frontier moves project capital off balance sheet, and revenue rose 445% to $57 million. The question is whether a $24.3 billion pipeline converts faster than dilution. x.comÂ
Eos Energy's operating losses and debt burden threaten shareholders with further dilution. Its SEC-based reconstruction shows shares rising from roughly 200 million to 364 million, with a potential 636 million if all convertibles and warrants convert or are exercised. Operating losses run near $80 million per quarter, and financing interest is about $10 million quarterly until 2032. x.comÂ
Eos Energy may not be worth holding right now because of the dilution that is coming. Real revenue ramping with Cerebrus soon would help. x.comÂ
Eos Energy's zinc aqueous chemistry addresses fire safety, full-depth cycling and multi-hour duration problems that lithium struggles with, which is why it is appearing in utility and data-center projects. The technology is good, but Eos still has to prove it can manufacture cheaply enough at scale. After a 91% drop, the stock looks deeply oversold and most bad news is already priced in. x.com x.comÂ
Eos Energy's 34% short float points to further decline after the stock's fall from $19.19 to $3.07. x.comÂ
Eos Energy has genuinely brilliant technology undermined by genuinely terrible management. Its safe, US-made zinc battery addresses long-duration storage, but a massive guidance miss halved the stock and triggered securities fraud suits. Shares outstanding rose 49% in a year amid insider selling; it has $877 million of negative equity, $506 million of debt and no profit before 2028 at best, and its Cerberus deal mostly helps Cerberus. Record shipments, a new CFO and CEO buying are green shoots. … Show more
Eos Energy's business is moving the opposite way from its stock, which is down roughly 85% from its highs and still priced like a different company. Q2 revenue rose 351% YoY, backlog is $807M, the commercial pipeline is $24.6B, and manufacturing capacity is heading toward 4 GWh. Technically the stock still has work to do before a real pivot, but the long-term target remains $20+. x.comÂ
Eos Energy will never be a profitable company, and its management lied badly to investors. That outweighs a reply from @siixandserello arguing the Eos thesis is stronger than ever and that the share price does not reflect the company. x.com x.comÂ
Eos Energy's abysmal gross margins will prevent a rerating until they improve, despite good revenue figures. x.comÂ
Eos Energy's zinc batteries fit the long-duration storage that AI data centers and grids need, discharging for multiple hours to 10+ hours with minimal fire risk, where lithium-ion is optimized for 4 hours or less. Q2 revenue was a record $68-69 million, backlog stands at $807 million, and Line 2 at its Thorn Hill, Texas, plant is in commercial production. US manufacturing qualifies it for IRA credits, and a Cerberus venture speeds deployment. Equity raises have stoked dilution worries. x.comÂ
Eos Energy has not been a good investment since last Q3 because management is untrustworthy, has missed guidance many times and is burning cash fast, even though the product, story and idea are appealing. @tmitch4040 argues Eos missed guidance only once and is endorsed and contracted by Google and the government. x.comÂ
