These Major Companies Will Likely Soon Be Dead

Mar 27, 2018

Rahul Shah, Editor, Profit Hunter

There's a massive shake-up taking place in the business world.

It's unlike anything I've seen in a long time... Many long-established companies will disappear... And those that remain will be scrambling to to survive.

History will look back at this as a 'turning point'.

This enormous industry-changing impact, oddly enough, will be brought on by the most unlikely thing...

It's the humble battery.

Up until just a few years back, you couldn't think of powering anything but the smallest electronic devices with batteries.

Most people still think of their remote controls and kids' toys when they think of batteries.

But batteries are no longer quite so feeble.

They might soon be taking centre stage in our lives.

Rapid advances in electricity storage technology could mean they replace - directly or indirectly - many long-standing ecosystems, including the petrol tank in our cars; and the systems that are used to generate electricity.

Both these have a massive supply chain of companies around them - all of whom must either evolve, or become obsolete.

Three leaps in battery storage in recent years are driving this change: battery capacity, size, and costs.

The net result - battery prices have fallen about 80% in eight years. And they're expected to keep falling.

Batteries may take a vice-like grip on two important areas:

  1. Mobility
  2. Electricity Grids
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And this could turn the business landscape of these areas inside out.

Battery-fueled electric cars are expected to outsell cars running on petrol by 2040.

Solar and wind power generation will also get an enormous boost as the only thing currently holding them back is inconsistent electricity production - batteries solve this problem.

All in all, it looks like the end of the fossil-fuel age is nigh.

The Sun is Setting on the Traditional Energy Industry
The Sun is Setting on the Traditional Energy Industry

Which industries will likely see the biggest shake-ups?

Here are the larger ones:

  • Crude oil exploration/refining/transportation
  • Coal mining and production
  • Traditional coal/gas based power generation utilities
  • Power generation equipment supply chains
  • Shipping companies with large fleets ferrying fossil fuels
  • Automobile companies
  • Auto ancillary companies, especially the large chain of engine component suppliers (hitherto considered the strongest segment)
  • Power generating engine supply chains
  • Products made from crude derivatives

In fact, some of these have already been hit.

To be sure, all companies in these businesses may not go completely bust.

But they will see big changes in the way they conduct their business 5 years... 10 years... from now.

What should a smart investor do with this information?

Be aware that the future of businesses you own stock in may not look anything like their past.

Pick stocks with care, on a case-to-case basis, with careful attention to the long-term sustainability of their businesses. Don't let a focus on next quarter's or next year's earnings make you oblivious to the longer term shake-ups taking place.

And remember that, in the share market, the short-term notwithstanding, at the end of the day share prices are a slave to business performance.

Good Investing,

Rahul Shah
Rahul Shah (Research Analyst)
Editor, Profit Hunter

PS: Better make sure you replace your disappearing stocks with some serious wealth-building stocks. How about trying these retirement-building recommendations?

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3 Responses to "These Major Companies Will Likely Soon Be Dead"

p ganesh ram

Mar 27, 2018

On the filp side crude will also fall, and may give tough fight.

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c m suneja

Mar 27, 2018

I am lifetime subscriber to your services since long.
After reading this article, i find there are divergent views on the same matter. If the nature of companies mentioned in the article are likely to be soon dead, then why your hidden treasure/ microcap millionaire services are giving buy/ hold recommendation on DEEP INDUSTRIES and JINDAL DRILLING.
I am confused which way to go. Kindly clarify.

regards

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Nilesh Doshi

Mar 27, 2018

Sorry I don't agree with you 100%. Change will happen but it takes long time and how crude oil derivatives will affects negatively. Can you tell me how many years India will take to have power station to recharge batteries ?
Expecting your answer

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