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.