Close menu




October 14th, 2020 | 13:40 CEST

Ballard Power, Royal Helium, NEL ASA - Through the roof!

  • Investments
Photo credits: pixabay.com

Hydrogen shares are the non plus ultra on the world's stock markets at the moment. Through the series, papers double if they are only associated with the noble gas, this topic is hot off the press! The alternative to fossil fuels, which allows emission-free mobility with fuel cells and serves as energy storage. The hundreds of millions in federal funding programs for research with hydrogen is fueling the hype. This current situation may be comparable to the solar boom ten years ago. At the latest, one could say that the wheat is separating from the chaff after the initial hype.

time to read: 3 minutes | Author: Stefan Feulner
ISIN: CA78029U2056 , CA0585861085 , NO0010081235

Table of contents:


    From heaven to hell - and back

    The pioneer of fuel cell technology, Ballard Power, can look back on an eventful past. With peak prices of EUR 150.00, investors celebrated the Company as the big stock market star in the 2000s. After the Tech Bubble burst, the Company degenerated into a penny stock. Slowly but steadily, the Canadians made a comeback.

    Meanwhile, the share price is almost EUR 16.00. The Company is also fundamentally excellent and broadly based. The Canadians supply fuel cells for several bus companies. Also of interest is the cooperation with Siemens, which urgently needs cells for use in trains. The North Americans are also a supplier for drones, smaller vehicles, and ships.

    China in view

    The entry of the Chinese Company, Weichai Power, with 19.9% opens doors in the Middle Kingdom. China needs an ecological turnaround more than ever. The obvious thing to do is to rely on Ballard's fuel cell technology.

    The leverage lies in the research

    At the Investor & Analyst Summit in late September, CEO Randy Mc Ewen announced some positive bullet points. The maximum output of a cell is to be increased, from 4.3 KW per litre to 5.3 KW per litre. Its service life is to be increased from 30,000 to up to 50,000 operating hours.

    The message, however, par excellence is this: By expanding product capacities and using more efficient materials, Ballard intends to reduce costs by an incredible 70% over the next four years. Should this strategy take hold, the way back into the (stock market) sky would become more real.

    New order

    NEL ASA, the European market leader in hydrogen technologies founded in 1927, continues to be one of the big winners of the "hydrogen boom." The Norwegian paper is currently sitting at NOK 21.00. A breakthrough of the all-time high at NOK 23.40 would open up further price potential. Recently, NEL has received a new filling station order. The Danish Company, Everfuel Europe, ordered hydrogen filling stations for EUR 1.6 million.

    Surplus demand for other noble gases

    Hydrogen and helium are the most common elements in the universe and have a lower density than air. Unlike hydrogen, which is currently the word on everyone's lips, the applications for helium are also extensive and no less important. The healthcare and manufacturing sectors have been drivers of increased demand.

    Space travel as a major customer

    Space travel will be another significant field in the future. NASA is already the largest single customer for the helium dealers. When launching rockets, helium is needed to regulate the pressure of the fuel tanks. Since fuel consumption can easily exceed 2,000 litres per second, the pressure in the tanks has to be balanced by helium. Demand will increase accordingly for the planned space tourism of Elon Musk with SpaceX and Richard Branson with Virgin.

    Niche players with potential

    The Canadian Company Royal Helium focuses on the procurement of the noble gas helium. The gas cannot be produced artificially and is extracted from underground deposits. Royal Helium has access to around 400,000 hectares of licenses for the noble gas in North America, making it one of the largest market players. Last week, the Company announced that it received helium permits for an additional 32,166 hectares of land in the southeastern half of Royal's property in Saskatchewan, Canada, where the total area of helium leases and approved concessions now totals approximately 4,320 square kilometres.

    Initial recommendation: 'Buy'

    In a recently published study by the Canadian analyst firm Cormark Securities Inc., analyst Michael Mueller points out the advantages and enormous opportunities of Royal Helium and gives a buy rating with a target price of CAD 0.80 as an initial estimation.

    Currently, the share price is CAD 0.36. According to Mueller, this means that there is a clear chance of a doubling.


    Conflict of interest

    Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as "Relevant Persons") may in the future hold shares or other financial instruments of the mentioned companies or will bet on rising or falling on rising or falling prices and therefore a conflict of interest may arise in the future. conflict of interest may arise in the future. The Relevant Persons reserve the shares or other financial instruments of the company at any time (hereinafter referred to as the company at any time (hereinafter referred to as a "Transaction"). "Transaction"). Transactions may under certain circumstances influence the respective price of the shares or other financial instruments of the of the Company.

    Furthermore, Apaton Finance GmbH reserves the right to enter into future relationships with the company or with third parties in relation to reports on the company. with regard to reports on the company, which are published within the scope of the Apaton Finance GmbH as well as in the social media, on partner sites or in e-mails, on partner sites or in e-mails. The above references to existing conflicts of interest apply apply to all types and forms of publication used by Apaton Finance GmbH uses for publications on companies.

    Risk notice

    Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and etc. on news.financial. These contents serve information for readers and does not constitute a call to action or recommendations, neither explicitly nor implicitly. implicitly, they are to be understood as an assurance of possible price be understood. The contents do not replace individual professional investment advice and do not constitute an offer to sell the share(s) offer to sell the share(s) or other financial instrument(s) in question, nor is it an nor an invitation to buy or sell such.

    The content is expressly not a financial analysis, but rather financial analysis, but rather journalistic or advertising texts. Readers or users who make investment decisions or carry out transactions on the basis decisions or transactions on the basis of the information provided here act completely at their own risk. There is no contractual relationship between between Apaton Finance GmbH and its readers or the users of its offers. users of its offers, as our information only refers to the company and not to the company, but not to the investment decision of the reader or user. or user.

    The acquisition of financial instruments entails high risks that can lead to the total loss of the capital invested. The information published by Apaton Finance GmbH and its authors are based on careful research on careful research, nevertheless no liability for financial losses financial losses or a content guarantee for topicality, correctness, adequacy and completeness of the contents offered here. contents offered here. Please also note our Terms of use.


    Der Autor

    Stefan Feulner

    The native Franconian has more than 20 years of stock exchange experience and a broadly diversified network.
    He is passionate about analyzing a wide variety of business models and investigating new trends.

    About the author



    Related comments:

    Commented by Fabian Lorenz on June 29th, 2022 | 12:18 CEST

    Buy or sell? Nel, Zalando, Aspermont under analyst review

    • Commodities
    • Investments
    • Hydrogen
    • Mining

    After the heavy losses of the past months, a countermovement seems to be starting at the moment. Whether this will turn into a real summer rally remains to be seen. Buy or sell is the question. Analysts see a price potential of over 50% for Nel ASA. Even though competition from China and India is increasing. Aspermont also appears attractive at the current price level. The latest quarterly figures were positive, and the positioning of the small-cap in the booming commodities sector is promising. At Zalando, analysts react to the profit warning, and the price targets are significantly reduced. Nevertheless, some advise buying the online fashion retailer, but not everyone.

    Read

    Commented by André Will-Laudien on June 24th, 2022 | 11:19 CEST

    TUI, Pathfinder Ventures, Lufthansa - The travel market is back - where are the share prices?

    • travel
    • Investments
    • Camping

    The travel market has changed dramatically since 2019 in light of the Corona pandemic. Due to the most extensive pandemic standstill in 2020, the capacities for flights, rail traffic and accommodation were adjusted downwards dramatically. Major cost reductions occurred primarily through de-occupancy and staff reductions. Travel companies cut their basic capacity utilization with partners to such an extent that many smaller operations had to pull out of the race, and large corporations could only survive with extensive state aid. Now, however, the situation has turned 180 degrees and demand for travel is exploding. However, this time it seems difficult to ramp up the reduced capacities in line with demand. We look at the opportunities of three typical industry players.

    Read

    Commented by Armin Schulz on June 24th, 2022 | 10:15 CEST

    Commerzbank, Triumph Gold, Bitcoin Group - Inflation alert! Which stocks bring returns in this market environment?

    • Gold
    • Crypto
    • Investments

    We have not seen such high inflation for decades. Looking back, it becomes clear that one cannot compare the situation back then with today. Back then, interest rates were at 12%, and as a saver, you could generate an increase in value for your money despite inflation. Today, interest rates are much lower than inflation. Putting money in a savings account will not bring any investor a profit. If you want to protect your money, the first thing that comes to mind is gold because it is considered crisis-proof. But nowadays, it almost seems as if cryptocurrencies could outperform gold. Alternatively, one can bet on stocks that cover these areas. We take a closer look at three companies.

    Read