You have to lower the house advantage. Every hard-core gambler walks into a casino with this mantra. Table games will always have an advantage for the house, that's why those magnificent edifices exist in the first place, but smart bettors ignore the lottery-like odds on bets at the ends of the tables and focus on the middle.
Investing in stocks requires a similar mentality. Investors can choose to mindlessly follow feckless leaders such as Treasury Secretary Janet Yellen or Fed Chair Jerome Powell, or to actually do their own homework and buy great companies, not just hot stocks.
Today's digital tools enable individual investors to quickly and easily acquire as much knowledge as is possessed by large institutions. There are research providers that offer access to company managements for no charge, as a service. I would describe these kindhearted souls in hagiographic terms, but that would border on arrogance, since I am one of those research providers.
In July my firm, Excelsior Capital Partners, hosted a Management Access Conference that featured two Canadian success stories, Exro Technologies (TSX: EXRO) (EXROF) and Vicinity Motor Corp. (VEV) . The two companies issued a press release in April describing a supply agreement under which Vicinity will validate Exro's coil driver inverter technology for use on its upcoming EV buses, branded as Lightning, and with batteries supplied by BMW.
So, I thought, why don't I put the two CEOs -- Sue Ozdemir from Exro and Will Trainer from Vicinity --together and we could talk about how those two companies will collaborate to produce a product that will be key to the electrification of vehicular powertrains, a key step in the decarbonization of transportation.
You can view our "Fireside Chat" here. It was amazing.
Sue and Will described their companies' partnership in easy-to-understand language. The first sector I followed as a Wall Street analyst was auto components, but refreshingly, I didn't feel any tension between Will and Sue. I remember blood draining from auto suppliers' executives faces when I would ask them about the validation process at OEMs like Ford (F) and General Motors (GM) , but there was none of that on Monday. Both Sue and Will described a three to six-month validation process, obviously one that will be rife with engineering data analysis, but one that certainly doesn't seem overwhelming.
So, as 2022 progresses, I fully expect these two companies to have a viable product on the road. Vicinity has already nailed down a key order for its EV buses -- from Exro's hometown of Calgary, Alberta -- but, as Will noted on our call, the market for 30-foot buses is roughly 50/50 public/private. There are a plethora of private buyers who could choose to "green" their shuttle bus fleets with an EV offering.
At the ExCap Mgmt Acces Conference, Sue shattered my brain (this happens often) with Exro's array of emerging technologies. Exro has developed applications for EV battery repurposing (BCS) and also noted the possibility that Exro's core coil driver technology could be implemented in systems in which vehicle batteries are integrated in electric power grids (V2G.) Much of the audience Q&A during Monday's chat - -an excellent session -- focused on these technologies.
But technology on its own is impossible to value. Monday's talk really focused on the application of technology, not the technology itself. These two companies will produce a viable product that, through Vicinity's always-busy marketing team, will produce actual unit sales and financial revenues. It's tangible stuff, and, again, the best way to learn about it is to watch the YouTube video of our talk.
Real Money's platform affords me the opportunity to educate, and that is my main goal. It is fun to take shots at Powell and co., to be sure, but if I can introduce even one investor to an emerging growth company and facilitate a long-lasting investment in an innovative company, then I have done my job. I believe Exro and Vicinity are two such companies.
So, watch the video and do your homework. It is a worthwhile investment of your time, and will lower Wall Street's house advantage against you, the individual investor.
Please note that due to factors including low market capitalization and/or insufficient public float, we consider Exro and Vicinity to be a small-cap stocks. You should be aware that such stocks are subject to more risk than stocks of larger companies, including greater volatility, lower liquidity and less publicly available information, and that postings such as this one can have an effect on their stock prices.