Pandemic stimulus plays into Calix business growth.

Stage two Leilac plant in Europe

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 thirty four million Euros in 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.

DISCLAIMER AND IMPORTANT INFORMATION

I own shares in this company at the time of writing this post. However, I do not accept any payment from this or any other company I cover. Nor is my interview or blog in any way a recommendation and should not be seen as a form of financial advice. Disruptive technology stocks should be considered very speculative, high-risk, and extremely volatile. There are significant risks inherent in developing new technologies that are not discussed here. You should always seek professional advice before considering any share purchase or sale. Please read our full disclaimer.

This stock has risen 600% in a year.

Archer Materials [ASX:AXE] is a technology company developing materials in computing, biotechnology, and lithium-ion batteries, as well as exploring for minerals in Australia. An unusual combination for a tech company.

But another difference with Archer is it is one of the few stocks that can give an investor exposure to what many believe is the holy grail of computing, quantum computing.

Archer has been invited into the prestigious IBM quantum research world and is working on developing a quantum computer processor that can operate at room temperature.

Heat generation is one of many big challenges in quantum computing.

If Archer can develop such a processor it would be a big deal.

If you'd like to understand more about quantum computing, this article by Norman Quesnel, a Senior Member of Marketing Staff at Advanced Thermal Solutions, Inc. (ATS) is one of the simplest and clearest explanations I have read on the subject.

Archer Materials boasts strong intellectual property, broad-scope mineral tenements, world-class in-house expertise, a unique materials inventory, and access to over $300 million of technology development infrastructure.

As this is the first time I've looked at Archer, I have done a deep dive interview for about thirty minutes.

You can either look for the specific questions you want answers to on Archer from the list below or hover your mouse over the dots on the play bar to reveal the questions.

CHAPTER MARKERS

Start: Why should an investor consider investing in Archer?

1. How would you describe the business?

2. How did you end up a mining and tech company?

3 Is quantum computing your biggest focus?

4. Why would investors invest in quantum computing?

5. What attracted IBM to partner with Archer?

6. How and when will the quantum show income?

7. Reliable energy division of Archer?

8. Reliable energy division of Archer?

9. What can Archer offer reliable energy customers?

10. How important are biosensors to health testing?

11. Why is digitizing a biosensors a big deal?

12. How big is the biosensor market?

13. What would set your biosensor apart from others?

14. What is the financial position of the business?

15. How do you manage to only spend $150K a month?

16. How long can you fund business with current cash?

17. How risky is the business for the short to medium?

18. Is Archer a short or medium term investment?

19. How has Archer performed for shareholders?

20. Risk reward strategy of Archer.

21. One of the great traps tech can fall into

DISCLAIMER AND IMPORTANT INFORMATION

I do not own shares in this company at the time of writing this post. I also do not accept any payment from this or any other company I cover. Nor is my interview or blog in any way a recommendation and should not be seen as a form of financial advice. Disruptive technology stocks should be considered very speculative, high-risk, and extremely volatile. There are significant risks inherent in developing new technologies that are not discussed here. You should always seek professional advice before considering any share purchase or sale. Please read our full disclaimer.

Virus-proof stocks? Is Calix a fit?

Stability comes in many forms.

For example, the simple decision to have a defined shopping time for the elderly and disabled in supermarkets shows the broader community that there are many ways to maintain order and therefor avoid panic.

Business will increasingly play a vital role in this process and for business leaders it is an exercise to test their skill in creative thinking.

For the rest of us, their success may be a vital component in ensuring we find smart and novel solutions to meet and beat the many challenges ahead.

Not the Hodgson family van but sort of like this.

As a shining example of this, the self isolated CEO of Calix continues to run the business from his family camper van.

Having recently returned from Britain, and despite arriving back prior to the mandatory self quarantine, Phil Hodgson decided for the safety of all, he should run Calix corporate HQ from his front yard.

It was from this new-style corporate lair that we discussed why he feels Calix, as distinct from its CEO, is a virtually virus-free business. And no, he is fine, just rightly being cautious.

Calix has a unique, patented technology that provides environmentally friendly industrial solutions that address global issues around things like advanced batteries, crop protection, aquaculture, wastewater and carbon reduction.

Apart from also having the coolest company mission statement yet,

"Because there’s only one Earth – Mars is for Quitters",

Calix boss Phil Hodgson told me he believes the company's share price has continued to trade in its usual range because:

• The fundamentals of the business haven't changed

• Ongoing demand for product whether virus exists or not

• Company has continued to deliver on promised performance targets

• A vertically integrated business in control of their own supply chains

Here's the full interview.

Calix highlights compared to half-year FY19 as posted to ASX on February 26th

2020. During the first half of FY20, Calix:

• Delivered total sales revenue growth of 144% pcp

• Delivered sales growth in AUS/NZ/SE Asia of 39% pcp

• Completed strategic acquisition of US-based Inland Environmental Resources Inc

• Announced ~A$30m in grant funding to demonstrate and enhance the commerciality of its unique technology

• Executed first sales and marketing license deal for its disruptive crop protection product

• Progressed operational testing of its CO2 capture technology for lime and cement production

• Commissioned its advanced battery materials reactor, commenced funded R&D and joined Australia’s largest

battery development program – the A$150m Future Battery Industries CRC

• Maintained EBITDA / Cash break-even while re-investing for growth

DISCLAIMER AND IMPORTANT INFORMATION

I own shares in Calix at the time of writing this post. However, I do not accept any payment from this or any other companies I cover. Nor is my interview or blog in any way a recommendation and should not be seen as a form of financial advice. Disruptive technology stocks should be considered very speculative, high-risk, and extremely volatile. There are significant risks inherent in developing new technologies that are not discussed here. You should always seek professional advice before considering any share purchase or sale. Please read our full disclaimer.