31. August 2020 | 05:55 CET
Ballard, Burcon, dynaCERT - stock market favorites with enormous upside potential
Investors love business models that are scalable and can change the world positively. Patents and profitability are then decisive factors for the amount of price gains. However, some business ideas also require patience, which can still be worthwhile, as we can see from three examples. Hydrogen, proteins and environmental protection will accompany us in the coming decades and with the right companies, investors will probably be able to achieve above-average share price gains. However, the momentum of the various stocks may vary over time and against this background diversification is particularly important for a forward-looking portfolio.
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ISIN: CA26780A1084 , CA1208311029 , CA0585861085
Opportunity before new highs
The dynaCERT share is currently trading at less than EUR 0.50 and is therefore only half as valuable as it was in February 2020, just before the Corona Pandemic. Three weeks ago, the experts at GBC Research raised the target price of the Canadian company's shares from EUR 1.30 to EUR 1.40 per share and confirmed the 'Buy' rating. The news of recent weeks has also been extremely positive. On the one hand, the company received another large order and on the other hand, which is extremely far-reaching, dynaCERT is now working together with the United Nations. The importance of hydrogen technology is of great social relevance, which this cooperation now proves.
More than 200 cities worldwide are already working with the United Nations in the context of the "United 4 Smart Sustainable Cities" program. The special feature of dynaCERT's patented technology after about 15 years of development is that existing diesel engines consume significantly less fuel due to devices for retrofitting and the use of hydrogen. In addition, emissions of CO2, NOx and particulate matter are reduced. The devices are used in vehicles in everyday traffic and generators for power generation. The advantage is that the air becomes cleaner and at the same time no replacement of the vehicle or generator is necessary. According to the company, the acquisition costs can be amortized within one year depending on use. So it is only a matter of time until there will be further reports of sales successes, which will also push the share towards new highs.
Health and animal welfare
The Canadian company Burcon holds a large number of patents for high-quality proteins that are of particular importance for the food industry. The replacement of animal products is becoming more and more important for several reasons: Firstly, the interest in animal welfare has increased in modern society and, secondly, it is becoming more and more difficult to maintain the supply of meat to a growing population around the world.
Burcon's Proteins will be able to supply companies like Nestle with proteins that can be used in food products as a substitute for animal products. This includes both meat and milk substitutes. The billion-dollar market will provide large revenue streams for Burcon in the coming years. Currently, the company is still in the process of completing its large production capacity, but it is known that the future is being traded on the stock exchange and the shares started the weekend on Friday at their highest level since 2017. Burcon's share price could multiply if the company's operations develop successfully.
Optimal political environment
Ballard Power is one of the most popular companies as a manufacturer of fuel cells for a hydrogen ecosystem, or at least the interest in the share as an indication of this. The company already had to cope with difficult times when nobody was interested in replacing combustion engines. Meanwhile, high government subsidies provide political support for the technology and its dissemination.
However, fuel cells, no matter what manufacturer they are from, can only offer a real advantage over internal combustion engines if the electricity used to produce the hydrogen comes from energy sources that are almost 100% renewable. As soon as a country or region has to use fossil fuels to produce hydrogen, depending on the energy mix, there may be a disadvantage for the environment. Given that this energy source still receives political support, it will probably only be a matter of time before the stock sees new highs again.