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Berkshire Grey is a killer pure play warehouse automation bet that nobody is talking about yet; just signed FedEx to join WMT as customers

Berkshire Grey is a really undercovered opportunity IMO for a number of really important factors.

First and foremost, trend:

We are currently in the midst of a automation revolution, one that’s only beginning to pick up steam. With the passing of the infrastructure bill eminent, there’s going to be a lot of money pushed into shoring up the US supply chain and manufacturing. If you think these big companies are going to spend all that money just to build the exact same human run factories you’ve got another thing coming. Just look at Sony’s latest factory for PlayStation – which pumps out one unit every 30 seconds and is manned by only 4 people (https://asia.nikkei.com/Business/Companies/PlayStation-s-secret-weapon-a-nearly-all-automated-factory)

Furthermore, with threats of unionization in warehouses and points of distribution (a specialty for BGRY) there’s a big push toward efficiency creation via automation. More jobs for robots, less for people. This combined with an unending and only growing surge in online ordering speaks volumes for the potential of the sector.

Next, some fundamentals:

BGRY is run by the former CTO of iRobot – Tom Wagner. Under his engineering mind, the company has built a patent portfolio over 300 deep. This has helped the company not only establish itself quickly with a list of blue chip clients such as Walmart, FedEx, Target and TJX. Many of whom are expanding the partnership, like FedEx last week. https://sourcingjournal.com/topics/logistics/fedex-ground-berkshire-grey-small-package-processing-robotics-295831/

The company expects to have $1.3bn in the order pipeline by 2025 and should exceed that. They also have a ton of cash on hand now ($500m) for expansion.

The Trade:

1/22/22 $7.5c avg @ 1.9

submitted by /u/Goku_ukoG
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