Conversation 158:
Pandemic stimulus plays into Calix business growth.
It is often said that it's an ill wind that blows no good.
In the case of Calix [ASX:CXL] that is true of the covid pandemic stimulus packages being rolled out for public works programs in Australia.
According to Phil Hodgson CEO of Calix, the spending has rapidly accelerated the interest in the Calix technology, which is based around a modern day version of the five thousand year old kiln concept.
Calix Limited (CXL) has developed a patent-protected, platform technology that, through its 21st century version of the kiln, produces new materials and processes, targeted at solving some significant global challenges.
Cement production is one of the key focus areas Calix has been working in because their tech can capture significant amounts of carbon dioxide, normally released into the atmosphere as part of the cement production process.
Five percent of the world's CO2 pollution is as a result of cement production.
Stimulus spending will probably increase this.
Calix recently announced that final project agreements have been executed for the scaleup of its Low Emissions Intensity Lime and Cement ("LEILAC") technology for capturing unavoidable CO2 process emissions during the production of lime and cement. The project has received significant funding from the EU and major cement producers in Europe.
I caught up with Phil Hodgson recently to ask him if he thought the government stimulus would have a positive effect on the business.
Conversation between Phil Hodgson CEO Calix and Phil Carey
EMERGING TECH STEPS TO SUCCESS.
An Inside Market estimate of where an emerging company is in the journey to profitability.
CEO Phil Hodgson says different parts of the business are at different stages – hence on the 5 key verticals they are pursuing he estimates:
ACTI-Mag CRI6 AQUA-Cal+ TRL9 / CRI 2 to 3
[ WASTE WATER TREATMENT, BIOGAS MANAGEMENT, SHRIMP FARMING & LAKE REMEDIATION.]
BOOSTER-Mag TRL8 to 9 / CRI 2
[ CROP PROTECTION.]
LEILAC TRIAL 5/6
[ CO2 REMOVAL FROM CEMENT PRODUCTION.]
TRL 2/3 and firm 5
[ ADVANCED BATTERIES.]
SOME OF THE RECENT MARKET ANNOUNCEMENTS BY CALIX
Calix-led Consortium Executes Final Project Agreements for “LEILAC-2” CO2 Capture Facility
SHARE PRICE TREND
A SAMPLE OF RATINGS FOR CALIX
[CURRENT ON THURSDAY JUNE 25TH 2020]
Morningstar Quantitative [algorithmic] Rating *
Valuation Rating Undervalued
Fair Value Estimate 0.749
Fair Value Percentage Diff 23.90%
Liquidity High
Canaccord Genuity
* The rating uses a machine-learning model to rate 22 times more funds than are rated by Morningstar analysts in EMEA and Asia.
The Quantitative Rating is an extension of the recently enhanced Morningstar Analyst RatingTM for funds (Analyst Rating), which provides an analyst's forward-looking assessment of a fund's ability to outperform its peer group or a relevant benchmark on a risk-adjusted basis over a full market cycle. Morningstar EMEA and Asia manager research analysts assign Analyst Ratings to approximately 1,260 open-end and exchange-traded funds and together with the Quantitative Rating, cover approximately 29,200 funds, representing nearly 105,000 share classes in EMEA and Asia.