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December 9th, 2019 | 12:35 CET

BMW, Daimler, Volkswagen - GBC's buy recommendation for retrofitter dynaCERT

  • hydrogen
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The German automotive industry is facing major challenges. Customers want vehicles with performance and range, but politicians have persuaded the industry to manufacture and market economical engines. What happens if the manufacturers' offerings do not meet the wishes and needs of the market? Nothing more and sales collapse. The consequences of this misguided policy will become visible in the coming years. The demand for new cars will decrease with further tightening of emission standards and the holding period of existing vehicles will increase. At the same time, the loss in value of vehicles with internal combustion engines is unlikely to remain as high. GBC Research today published an update on a study on an exciting retrofit with hydrogen technology for internal combustion engines, confirmed the buy recommendation and raised the price target.

time to read: 2 minutes | Author: Mario Hose
ISIN: CA26780A1084 , DE0005190003 , DE0007100000 , DE0007664039

Table of contents:

    Hydrogen makes diesel greener

    The Canadian company dynaCERT Inc. produces and sells a hydrogen technology to reduce carbon dioxide emissions for use with diesel engines. As part of the growing global hydrogen economy, its patented technology generates hydrogen and oxygen on demand through a unique electrolysis system and delivers these gases through the air intake to improve combustion, resulting in lower CO2 emissions and higher fuel efficiency.

    The technology is designed for retrofit and for use with different types and sizes of diesel engines, including road vehicles, refrigerated trailers, off-road construction, power generation, mining and forestry equipment, ships and locomotives.

    Well-known partner in Europe

    With the MOSOLF Group dynaCERT could win another strategic partner. MOSOLF is one of the leading system service providers for the automotive industry in Europe. The range of services includes logistics, technology and service solutions, which are implemented with the help of a Europe-wide location network and a multimodal carrier fleet.

    MOSOLF has 38 technical and logistics centres, 1,000 special vehicle transporters and achieved sales of EUR 417 million in 2018. MOSOLF has already ordered 1,000 dynaCERT HydraGEN units for the year 2020 and will also serve the European market as a dealer.

    Passenger car market in Europe

    MOSOLF and its subsidiaries plan to become distributors and installers of HydraGEN products in Central Europe. As part of the cooperation, negotiations have also begun for a joint venture in which MOSOLF and dynaCERT will jointly develop, finance and certify the HydraGEN technology for the European passenger car market. The analysts of GBC see an extensive market potential in the cooperation. This could make the European roll-out even more dynamic.

    Billionaire joins in

    Eric Sprott's acquisition has also made headlines in recent weeks. The billionaire Sprott is one of Canada's best-known commodity investors and his commitment to dynaCERT should have brought him into the spot light. Sprott is now one of the major owners of dynaCERT with a 10% ownership. Sprott subscribed 28 million shares at a price of CAD 0.50 within the scope of a capital increase and thus brought CAD 14.00 million fresh liquidity into the cash of the growth company.

    Technology without competition

    There is currently no known competitor on the market other than dynaCERT that could offer fuel savings and at the same time generate emissions certificates. Within a few years, this system for distributing the revenue from emission allowances could exceed the revenue from the sale of HydraGEN equipment.

    The scheme will also exempt the sale of HydraGEN and its dependence on the price of oil, allowing fast amortisation. In the future, this business could generate an annual turnover of CAD 500 to 1,000 million - depending on the CO2 price.

    Ecosystem for transport industry

    The company has successfully developed a range of products that can function as a stand-alone ecosystem for the transportation industry, including emission reduction, fuel efficiency and a fleet management solution. In addition, the customer will benefit from a stable source of revenue in the future through the emissions certificate program. **Each product alone is unique.

    According to GBC's experts, dynaCERT is currently significantly undervalued and they have raised their previous price target from CAD 1.90 to CAD 2.00. Given the fact of the high upside potential, they award the Rating BUY.

    The complete update of GBC Research is available here:

    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.

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    Der Autor

    Mario Hose

    Born and raised in Hannover, Lower Saxony follows social and economic developments around the globe. As a passionate entrepreneur and columnist he explains and compares the most diverse business models as well as markets for interested stock traders.

    About the author

    Related comments:

    Commented by Nico Popp on November 15th, 2022 | 13:30 CET

    This hydrogen news moves the share prices today: dynaCERT, Morphosys, Varta

    • hydrogen
    • Automotive

    When news moves prices, chart analyses and analysts' assessments are invalidated in one fell swoop. Today, momentum is building for the hydrogen stock dynaCERT. The reason: The Company, together with its new distribution partner, has announced deliveries to renowned mining groups. Among them are Vale, Nexa Resources and Antamina, one of the ten largest mining companies in the world. Is this a breakthrough for HydraGEN™ technology? We shed light on the exciting situation surrounding dynaCERT and also use the examples of MorphoSys and Varta to explain how investors can react when everything suddenly changes.