January 13th, 2022 | 11:03 CET
Bayer, First Hydrogen, NEL: This is how innovative investing works!
Table of contents:
"[...] Why should a modular electrolyzer cost more than a motorcycle? [...]" Sebastian-Justus Schmidt, CEO and Founder, Enapter AG
Bayer: Good Company in a deep sleep
For many private investors, Bayer might have the image of a somewhat dull large corporation. The fact is the Company is worth around EUR 46 billion and is thus anything but a startup. But it is less about market capitalization and more about actual potential. Here Bayer scores with a balanced product mix of drugs, seeds and other health products. The agricultural business, in particular, is benefiting directly from population growth and the trend toward more plant-based nutrition. While Bayer still has a bad image due to the Monsanto takeover a few years ago, it can be assumed that this tarnished image will be worth accepting in the short and medium term - the business unit is already developing so well. In the first nine months of the fiscal year, Bayer increased its sales by 5% to EUR 33 billion.
The result shows that the global supply chain problems have not had too strong an impact. Bayer is also currently so strong that the Company from the Rhineland can delight its shareholders with a dividend yield of just under 5%. The stock also has a low valuation. Although Bayer is not a trending stock, the underlying conditions are excellent long-term. Those who like things conservative are in good hands with Bayer.
First Hydrogen: Where question marks are opportunities
First Hydrogen's stock is anything but conservative. The Company has set itself the goal of putting a hydrogen delivery van on the roads. Parcel services, delivery services or even tradespeople in customer service - the list of potential application areas is long. Since emissions are an issue in inner cities, hydrogen solutions could fill an exciting niche. The Company is converting existing car bodies with innovative hydrogen components and aims to deliver more than 10,000 units as early as 2025 / 2026. First Hydrogen emphasizes that it can react flexibly to the requirements of the respective target markets as it plans to use modular components. The Company is already working with partners such as Ballard Power and AVL.
In a recent research article, the portal researchanalyst.com wrote about First Hydrogen: "Alongside the established players, First Hydrogen is entering the market as a newcomer and has enormous advantages in terms of flexibility and costs due to its "best-of strategy". If the 10,000 units targeted by management for 2025 are achieved, the Company should quickly move to a higher valuation level." However, as a detailed business plan and verifiable figures are still lacking, the value must be considered speculative. Nevertheless, the equity story has been well received on the stock market - the share has gained a whopping 35% over the past month.
NEL: Chart technology says it all
With its dynamic development, First Hydrogen is somewhat reminiscent of its Norwegian competitor NEL a year ago. Hydrogen was the hot topic on the stock market then, and investors celebrated every hint of possible business in the future. In the meantime, the fantasy surrounding NEL has died down. While the Company is well-positioned around hydrogen and has developed strong partnerships in many areas, the stock is still expensive after a 55.8% loss for the year. As described a few months ago, the EUR 2 mark has proven resistant. It cannot be ruled out that the value will now test the area around EUR 1.30. The share is battered on the chart.
The chart of Bayer also does not give much hope at the moment. After all, Bayer earns good money, is well-positioned and pays a dividend. In the duel of the two well-known shares, the chemical group from the Rhineland thus achieves the point victory. First Hydrogen, on the other hand, is in a different league. There is excellent growth potential, an intact upward trend, and a fair amount of residual uncertainty here. Daring speculators can capitalize on this.
Conflict of interest
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