14. September 2020 | 12:28 CET
Ballard Power, Nikola, Saturn Oil & Gas - Share price potential with good ideas
Last Friday, rumors led to an 185% rise in the shares of Canadian exploration company Giga Metals. According to several sources, Tesla plans to purchase nickel and cobalt from this company in British Columbia in the future. The main reason for this is that Giga Metals will be able to operate the mine with hydroelectric power. In addition, environmental regulations in Canada are among the strictest in the world. Against this background, Tesla is able to improve its own CO2 footprint. A sensible and overdue step that hopefully will be imitated.
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ISIN: US6541101050 , CA0585861085 , CA80412L1076
Better Crude Oil
The Canadian oil producer Saturn Oil & Gas has been producing oil in the province of Saskatchewan since 2017. In 2019, the company reported its first annual profit since its foundation. Due to the current Corona Pandemic and in connection with the current consolidation phase in the oil sector, CEO John Jeffrey has already announced acquisitions in an earlier news release. In a buyer's market, when the demand side determines the price, it is more advantageous to acquire producing assets rather than to drill yourself time-consuming and cost-intensive wells.
The management is pursuing the goals of ESG and Saturn Oil & Gas has had dynaCERT CEO Jim Payne on the board since March 2020 as a director. dynaCERT from Canada has recently become a partner of the United Nations and helps cities reduce pollutant emissions with its hydrogen technology. Respect for human rights is a matter of course in Canada and the strict environmental protection requirements for oil production make the country attractive for the procurement of raw materials.
It is possible that in the future, customers will be able to choose where the fuel will come from at the filling station, similar to coffee beans. Practicable and simple it would be possible if customers could choose the origin of the replacement of the fuel they had previously filled up when paying for it. Petrol station operators would thus have a real competitive advantage over the common practice where the origin is unknown and thus despots and human rights violations could be unknowingly supported. Companies like Saturn Oil & Gas have a special starting position in the future supply of better oil.
Innovation for the shipping industry
The Canadian fuel cell manufacturer Ballard Power can help to power electric motors in all vehicles. The special feature of a fuel cell is that it converts the energy carrier hydrogen into electricity. The advantage of fuel cells is that they do not emit pollutants, but to achieve an environmental benefit, hydrogen must be produced from renewable energy sources. In addition to vehicles on land, ships are now also being equipped with fuel cells from Ballard Power.
Rob Campbell, Ballard's Chief Commercial Officer, recently stated in a press release: "Ballard is focused on heavy- and medium-duty motive applications, particularly where requirements include heavy payload, extended range and rapid refuelling. This is a sweet spot for our fuel cell value proposition, which is backed up by more than 50 million kilometres of operational experience in thousands of vehicles. These same requirements underpin use cases in the maritime industry, resulting in a significant addressable market opportunity that can be effectively addressed by our new FCwave product. Global efforts to decarbonize include commercial maritime activities, where Ballard intends to build on our leading position in zero-emission fuel cell solutions."
Truth or lie?
The US company Nikola claims to change the transportation industry worldwide. As a developer and manufacturer of zero-emission battery and hydrogen-electric vehicles, energy storage systems, and the infrastructure for hydrogen filling stations, Nikola strives to revolutionize the economic and environmental impact of commerce. With General Motors, the company was recently able to win a well-known partner.
In addition to supporters, there are also market participants who do not believe in the success of the company and have doubts about the statements of the boss, Trevor Milton. Hindenburg Research has now published information about the company as a short-seller, which is aimed at reducing the value of the share. This goal is achieved by challenging the credibility of the company and its management. The longer it takes for Nikola to professionally refute Hindenburg's statements, the greater the uncertainty in the market and the price loss for shareholders. If the accusations of the short-seller are credibly refuted, there is a chance of a price rally.