This is a stock that could do anything, and the loss of government grants has it down ~11% since we flagged it as a conviction buy. At the cutting edge of carbon reduction technology for industrial applications like cement production, Calix ‘should’ have a huge future, however, we are always cognisant that left-field events can hit companies that are big on storyline and light on earnings, particularly those with a market cap of ~$1bn like CXL. We originally bought CXL at $4.22 with a 4% portfolio weighting and continue to believe the stock is a buy, however, we caution on position size given the risks in the execution and commercialisation of their technology. MM has no intention of going above a 4% portfolio weighting.
MM remains bullish CXL <$5.00, although we have no intention of increasing our ~4% weighting
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