August 24th, 2022 | 13:24 CEST
BYD, Meta Materials, Pfizer - Full pipeline
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"[...] We know exactly what we are doing and are implementing what we consider to be a proven technology in an industrially applicable and scalable way. [...]" Uwe Ahrens, Director, Altech Advanced Materials AG
BYD - Solid as a rock
While the US technology index Nasdaq has lost up to 34% at its low point since the beginning of the year and most electric car manufacturers also suffered heavy losses, Shenzhen-based BYD shone with relative strength and a clear outperformance. The "Build Your Dream" share has gained 15% since January 1, 2022. The reasons for the outperformance are manifold. On the one hand, the Company was able to knock the top dog Tesla off its throne in its home market and clearly distance itself from it. A total of 641,350 units were sold in the first half of the year, an increase of 314.90% over the same period last year.
In order to expand its market position, BYD is focusing entirely on producing pure electric and plug-in hybrid vehicles and has stopped the production of gasoline vehicles. In addition, the battery business is growing, which made BYD one of the world's top 3 battery producers. According to experts, the reason for the strong development is that the blade technology is considered one of the safest and most reliable in the industry. BYD also wants to supply the battery to other car manufacturers; Tesla, for example, has long been considered a potential customer.
In the field of electric cars, the Company plans to expand into the European countries Germany, Sweden, Norway and Denmark. HANs, Tangs and the Atto 3 are also expected to roll on the roads in Israel, Thailand and Cambodia in the future. From a chart perspective, the share has taken a short break recently and is trading at USD 35.12. The 200-day line is currently at USD 33.60. Despite excellent long-term fundamental prospects, a setback to the upward trend formed since May 2021 is certainly possible.
Meta Materials - Commercialization making progress
After the turnaround in the monetary policy and the at least temporary abandonment of money printing, growth stocks, in particular, have slumped significantly since the beginning of the year. In the process, one of last year's stock market stars came under heavy fire, although growth and the expansion of technology continue to be highly innovative and promising. Meta Materials, which was named "Lux Research Innovator of the Year 2021", has lost a staggering 96% since its high in June last year. The stock market value is currently only around USD 290 million.
It is precisely because of this enormous loss that it is worth taking a closer look at the Nasdaq company. The developer of high-performance functional materials and nanocomposites is on the verge of redefining the future of coating materials. Metamaterials is the magic word in which the market leader from Canada has secured 410 active patent documents, including 251 issued patents and 159 pending patent applications, and has extended its lead over competitors. Meta Materials' patent portfolio amounts to 98 patent families, of which 57 contain at least one granted patent.
With research into novel high-performance materials, it will be possible in the future to redirect light, sound, heat or radio waves through the development of unique nanotechnology. The innovative technology can be rolled out globally and across industries, such as 5G communications, health and wellness, aerospace, automotive and renewable energy.
Second quarter figures showed a huge revenue increase of 432% to USD 3.3 million. In contrast, a loss of USD 21 million was incurred due to development costs, which is the rule rather than the exception at this stage of the Company's development. Meta Materials was also able to strengthen its personnel once again. Jack Harding, a chip industry veteran, was appointed Chairman of the Board of Directors. As a former director at RF Micro Devices, he was involved in the merger with TriQuint Semiconductor to form Qorvo, which today has a leading position in high-energy RF electronics and a market capitalization of USD 11 billion. He was also a board member of chip giant Advanced Micro Devices as the Company began its transformation into an industry leader.
Pfizer - Ready for the next wave
The US pharmaceutical giant Pfizer is closer to the formed uptrend that started since the Corona low in March 2020. The Dow Jones Group distributes the vaccine against COVID-19, Comirnaty, with the Mainz biotech company BioNTech. With a current quotation at just under USD 49, the Americans are in danger of breaking through the striking support at USD 47.57. That would trigger a new sell signal to the next stop at USD 43.08.
Tailwinds are coming to vaccine producers ahead of the upcoming fall and the threat of the next strong wave of infections. With partner BioNTech, Pfizer now applied to the US Food and Drug Administration for emergency approval of a Corona vaccine adapted to the currently circulating Omicron variants BA.4 and BA.5. In addition, according to a press release, an application will also be submitted to the European Medicines Agency (EMA). In the event of positive approval results, the companies expect to start deliveries as early as September. A critical aspect is the fact that there are still no clinical studies for the adapted version.
Stock market losses have increased significantly recently due to fears of recession. Growth stocks such as Meta Materials have lost disproportionately, although enormous potential lies dormant here. BYD is still in correction mode, and things could get uncomfortable for Pfizer after the break in the upward trend.
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