 Okay in this video we're going to go through RMG SPAC which is Romeo Power, RMG being a special acquisition company and in its margin with Romeo Power we're going to go through in this video basically who Romeo Power are why why we should look at potentially buying them some of the research behind Romeo Power and some of the recent information and news and updates as well as some of the general research as well and we'll also look at some of the positives of Romeo Power and a couple of the negatives to have like a balanced approach to the video in a PowerPoint format. Okay so if you could like the video that'd be fantastic it helps it out in the YouTube algorithm so I'd be grateful for that be brilliant if you could do that and and I will get right into the video but first I've got to say obviously I'm not a financial advisor I'm a business teacher in my daily life but I'm no means an expert when it comes to the stock market so let's get into talking about Romeo Power so Romeo Power is likely to go public before the end of 2020's its merger with the SPAC RMG acquisition is now slated for approval on the 28th of December so this SPAC is a merger it could be happening very soon it's not fully confirmed but but but he's certainly going to be happening very soon the stock price has shot up right in the past month and we'll look into that as to why that is and whether we think that it's still a buy even at the current price okay and we'll look into this but it is going to be merging very soon okay so that's something to consider. So who are Romeo Power? So there is a southern California battery technology company dedicated to enabling large-scale sustainable transportation with energy dense battery packs that deliver the range and charge times you need to compete. Our unmatched team of elite engineers have made crucial breakthroughs in energy density, battery management and cost-effective manufacturing. With our batteries on board your EVs will provide the viable and even enviable alternative to traditional vehicles people have been waiting for in terms of both price and performance so that's very interesting there in terms of the price and performance they want to offer competitive pricing but also they want to make sure that what their batteries that they're producing have the best possible performance and obviously battery companies in terms of electric vehicle battery companies the success of the company is predicated on the quality of the product and its performance of the product. Romeo Power focuses on two key markets in a mobility energy technology so they've got commercial vehicles in terms of trucks and buses and then European high performance billet vehicles as well as light medium and heavy-duty commercial vehicles so this is very much involved in providing batteries for heavy-duty vehicles essentially which is an interesting target market to go for but there is a lot of potential in this particular target market which will go through. So what are they? So they're a leader in battery technology with industry-leading hardware software and thermal management attractive and large commercial vehicle total addressable market world-class partnerships and strategic players okay and that is really important as a catalyst as the more strategic partnerships they can get with companies that will have an impact on the share price if they're able to build those quality strategic partnerships there. Fully produced in North America okay so ultimately they are heavily invested in creating batteries and that's their main focus here. So some of the highlights this is an excerpt from their presentation here and then I'll go through in my own presentation some of my own positives and negatives and own thoughts here. So it's got 544 million contracted revenue up to 2.2 billion at advanced negotiations, world-class battery team with technical expertise and deep industry experience. So they've got employees that have worked for you know Tesla, SpaceX and a lot of these companies that are highly innovative so they've got a strong leadership team that and you know employees in general in terms of who they've got in the organization. Production facility with optimized manufacturing designed for high growth that is key. High growth manufacturing you know they need the capacity okay so as the electric vehicle industry continues to grow they need to obviously have the capacity to make the batteries and having this optimized manufacturing is going to help with improving the amount of output they can get in terms of that okay. So we got that point there and they've got established customer reputation for safety and reliability driven by principles of research and development so yeah so research and development is a key point in this particular company they need to obviously continue to research and develop the product to stay ahead of the competition. Order book with customers representing 68% of market share of the Class 8 truck market so 68.68% of the market share obviously only for the Class 8 truck market but the fact that it's 68% that is a huge amount there in terms of market share. Imagine if they you know continue to expand that and you know get into other heavy-duty vehicle areas and supply them there as well so there's a lot of opportunity here and they're obviously already the market leader within this particular class there which is great to see. So what are some of the positives of Romeo Pass? One of them is that they've got differentiated products in terms of we'll go into this in a bit but the way that they do the research and development the manufacturing and and the you know building of the products there's actually a lot of differentiation between what they're doing compared to the competitors. There's high profitability in the area okay and that profitability will come in terms of even fairer with economies of scale so as they sell more batteries okay you know the economies of scale from that will help improve their profit margins so high profitability. It's got a growing industry as we know the electric vehicle industry is growing I don't need to say anything more about that. The people with industry experience again they've got people involved in the company that actually have industry experience in the area which is important when the building such a innovative product. Another point is they've actually got a working product you may think well why is that a big deal? Well you'll notice that some of these SPAC mergers some of the companies that they merge with these SPAC mergers they don't always have a working product they have like a prototype they don't have a working product or anything like that. Romeo Power actually has a product that works there which is something we can go off. It's got a strong brand as well I think that the branding of the company is brilliant I think it's highly marketable. Obviously they've got a strategic direction in terms of the target market they're trying to reach and ultimately it's also got potential global appeal because it did mention in terms of American markets but also European markets as well so they're trying to reach audiences globally and other countries across the world and build a global appeal for the company. Some of the negatives are that there are some volatility aspects to this has been largely going up in price and it has reached a quite a high price at the minute but there's got potential to go even further and we'll go into that but there is some volatility there potentially especially in the electric vehicle market it seems to be a bit of volatility. Research and development costs so they're always going to have to keep ahead of the competition by obviously putting a lot of money in research and development. Now this isn't a negative I hate using this as a negative it's more for me a concern you know it's about managing those costs strategically which I'm sure they'll do because you know you can bend through a lot of cash in research and development you know they've got to do it strategically there and how fast can they scale versus the competition as well so ultimately the success of this company is also predicated on how fast can they scale up and reach larger market shares and they have started to do that already there's a history of that and so they are doing quite well in that regard so but but you know it's a concern in the fact that they do need to continue to scale faster than the competition okay so at a glance here so it was founded in 2016 100 dedicated employees 60 battery-specific engineers so it's good that they've got a lot of engineers involved in this company naturally with the type of product that is producing so it's projected sort of revenues here we've got 765 million 1.2 billion and then 1.6 billion okay so they're saying that they're going to increase their revenue year-on-year here which is obviously good as an investor but again we've got to bear in mind that this is their investor presentation so they are you know saying that in terms of a projection that you know which is which is fine and they've shown a good history so it's built by market leading expertise battery management patented technology that is huge so that if they can get a patent or a patent obviously on the technology that they're building that ensures that they've got competitive advantage because the competition can't copy what they're doing because it's patented leading edge technology in competitive total cost okay this is interesting okay just to go through this quickly what it's saying here is that highest energy density in the market among the leaders in gravity metric energy density now I'm not an engineer so I'm not going to pretend that I know what some of that is you know in detail so to speak but what it's saying here is essentially that you know it is a better quality product compared to a lot of its competition in terms of the energy density it's right up here which is brilliant and that is going to be a good sales point for the for the product so where's the stock price at now it's at 2129 and after hours it's gone up 0.85% so it is already quite high here on the stock market because I'll show you the second chart okay just the second one here so you'll notice that you know from the 20th of November it is shot right up from around you know you 10 11 to now 20 over 20 21 okay so it's already a very high price so in terms of getting into this investment would I sell I wouldn't sell my shares yet I think that it's going to go higher than this price because you know in terms of all the positives we went through that but maybe it will come down a little bit maybe below the 1918 something like that and that might be a good buying opportunity to get in on this for a long-term hold I think that this company's got a good potential you can swing trade it obviously but I really think for this company he's got a really good long-term potential in terms of what it's doing so so that is what I'm thinking in terms of that anyways so that's that's some information on Romeo power if that was at all helpful in any any sort of way please leave the video a thumbs up give it a like because it helps out in the YouTube algorithm it gets up in the search results and as a small channel that's just you know producing the I'm not selling any courses or anything like that all they ask is to like the video and and it helps this small channel out get up into the search results and hopefully in some and some more subscribers and grow the channel together thank you for everybody who's already subscribed you are brilliant so thanks for that and also that'll that'll be it for this video obviously disclaimer I have to remember to mention this as well I'm not a financial advisor I'm a teacher in my business in my daily life teach business but I'm no might by no means a financial advisor so as always I'm sure you're all doing do your own research here anyways I will see everybody in the next video