May 26th, 2022 | 11:22 CEST
BioNTech, Meta Materials, Plug Power - Future stocks for tomorrow's profits
Table of contents:
BioNTech - Continuing to earn handsomely
BioNTech was a pioneer when it came to developing a vaccine against Corona. The Mainz-based biotech company was first to the finish line and celebrated a huge success. While COVID-19 appeared almost out of nowhere, cancer is a different story, and not all types are curable yet by a long shot. But that is precisely what the Company is working on, and it can use the profits from the Corona vaccine revenue to fund research for a cure for cancer. A breakthrough in this area would be the next blockbuster.
On May 9, the Company reported its quarterly results and, as expected, they were very good. Sales tripled YOY to around EUR 6.4 billion, and net profit increased significantly from EUR 1.1 billion to EUR 3.7 billion. The forecast of EUR 13-17 billion in sales revenue for 2022 was confirmed. At the same time, it was announced that it had expanded its oncology pipeline to 16 product candidates in 20 ongoing clinical trials. It was agreed with the EU that the vaccine doses ordered would not be delivered until September. In the US, the Covid vaccine has received emergency approval for booster vaccination in children ages 5 to 11. So far, 8 million children have been vaccinated in this age group.
All this good news has not been able to boost the Mainz share so far. Since mid-January, the share has been moving sideways between EUR 111.30 and EUR 170.00. The share is currently trading at EUR 143.70. A special dividend of EUR 2 is to be paid for the first time. The price-earnings ratio is currently below 3 and is thus very favorable. On the other hand, analysts are very cautious, and the majority advise to hold with price targets between EUR 171 and EUR 328. If a breakthrough in cancer research is achieved, the share will quickly pick up.
Meta Materials - Sales increase by almost 400%
The trend of tomorrow could be metamaterials. Nanostructures give these materials unique functional properties in absorption, emission, detection, transmission and guidance of light, sound, energy and heat, as well as friction, strength and electrical energy. NASDAQ-listed Meta Materials is on track to bring these metamaterials into mass production. With this technology, it is possible to revolutionize areas such as 5G, aerospace, medicine, energy, consumer electronics and the automotive sector. The use of artificial intelligence also makes it possible to meet individual customer requirements quickly.
On May 10, the Company released its first-quarter report. Sales increased by 399% YOY and amounted to around USD 3 million. The growth company was not yet able to present black figures. The net loss amounted to USD 18.4 million. Three days later, a wholly-owned subsidiary received a US patent for a non-invasive glucose sensing system. This paves the way for diabetics in the US to measure their glucose levels in the future without the daily prick for a drop of blood. Management was strengthened on May 17 with the addition of Dr Raj V. Rajaram as Chief Marketing Officer. He is expected to strengthen the META brand and drive customer demand.
Meta Materials is on the right track. Already in the first quarter, about three-quarters of the total 2021 revenue of USD 4 million was collected. The patent portfolio is being continuously expanded, as is production capacity. All this is not yet reflected in the share price, even though it has recently been on the rise. On May 11, the stock hit a multi-year low of USD 1.03 before gaining over 92%. Currently, the stock is trading at USD 1.83. The short interest ratio on the stock is also very high, as Fintel recently reported. A total of 46.7 million shares are short, which means a short squeeze is possible if the stock is covered.
Plug Power - New orders
Decarbonization requires rethinking and new technologies. One possible alternative for fossil fuels could be hydrogen. Green hydrogen is currently still too expensive to give hydrogen technology a real breakthrough, but we can already see that it is only a matter of time. Currently, we lose surplus energy when the sun shines because then there is suddenly too much energy in the power grid. This power has to be given away to neighbouring countries so that our power grid does not collapse under the load. With electrolyzers, it would be possible to convert this energy into green hydrogen, which is then stored and transportable.
As more and more renewable energies from wind and sun are used, it is time to find solutions using hydrogen. One company that has taken up this cause is Plug Power. The Company offers its customers the complete value chain of hydrogen technology. From the fuel cell to the filling station and the green hydrogen, everything is available from a single source. In addition to Amazon, Walmart has also recently taken a bite out of hydrogen and ordered 20 tons of green hydrogen for up to 9,500 forklifts. The Company is to deliver the world's largest electrolyzer plant to Denmark.
The share price came under significant pressure with the quarterly figures, as analyst expectations were missed. Particularly in terms of the loss, the Group's figure of USD 0.27 per share was significantly higher than the expected USD 0.15 per share. After a multi-year low of USD 12.70, the share price started to rise again. Currently, the price per share is USD 15.18. The current environment should provide a tailwind. Especially in Europe, where Plug Power has its European headquarters in Duisburg, hydrogen is being promoted in order to become independent of Russian energy more quickly.
Innovations can spark a revolution. It is good to be an early shareholder in a breakthrough or hype. BioNTech continues to make very good money on the Covid vaccine and has an extensive product pipeline. Meta Materials functional materials can revolutionize many areas. There is a lot of interest, which can be seen in the sales figures. Plug Power is the biggest player in hydrogen and will benefit disproportionately if the technology breaks through.
Conflict of interest
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