21. May 2021 | 09:58 CET
Trend break, please look closely! BYD, Nel ASA, Bitcoin Group, SunMirror
"Turned on its heel" would be an apt description for Wednesday. Bitcoin was at the record-breaking USD 65,000 mark in mid-April and there were announcements that the USD 100,000 mark would soon be on the cards. Since that high, the cryptocurrency has plummeted by over 50% at the low and immediately stormed back up. The anti-protagonists of this casino mentality cite the decarbonization of the planet as a reason why the entire crypto world should be condemned for its power-hungry mining. Others see blockchain technology as the most significant digitization breakthrough of the future. Some companies are directly affected by these movements.
time to read: 4 minutes by André Will-Laudien
Born in Munich, he first studied economics and graduated in business administration at the Ludwig-Maximilians-University in 1995. As he was involved with the stock market at a very early stage, he now has more than 30 years of experience in the capital markets.
BYD - A global leader in plug-in hybrids
Chinese battery and e-mobility expert BYD is not quite as spectacular as Bitcoin; however, the stock is one of the best values in the sector of future technologies. Now the Company is reporting a milestone in the electric car and plug-in hybrid production: 1,000,000 plug-in vehicles produced and delivered. That puts BYD clearly ahead of Tesla and other manufacturers in the race for the environmentally conscious consumer in China.
The anniversary vehicle, a Han EV, rolled off the production line at the Shenzhen facility. However, in the production anniversary announcement, the group does not break down BEVs and PHEVs. Therefore, it is unclear how many pure electric cars and plug-in hybrids are among the one million plug-in vehicles produced. No matter - it is the mass that makes the difference!
And now comes expansion abroad: the market launch of the Tang model is imminent in Norway in the third quarter. The first batch of 100 all-electric Tang model SUVs for delivery to Norway is already in the pipeline. BYD plans to deliver a total of 1,500 Tang to Norway by the end of this year.
The BYD share was able to turn around successfully in the EUR 15 area and has resumed its upward path. However, the high at around EUR 28 is still about 50% away.
Nel ASA - Consolidation despite operational successes
The Nel ASA share is currently undergoing an extended consolidation. Based on worse-than-expected Q1 figures, some analyst downgrades caused the price to consolidate by 50%. Now, however, the good news is piling up again.
The NEL investment Everfuel has now communicated a cooperation agreement with Cabonline, the largest cab company in Scandinavia. Both companies have entered into a cooperation with Toyota Norway to deliver initially 100 Toyota Mirai hydrogen cabs by the end of 2022. Now this is what the market has been waiting for: true green applications for the public!
Under the agreement, Cabonline will offer incentives to its cab licensees to use hydrogen fuel cell vehicles. Toyota is also considering offering new green hydrogen-powered Toyota Mirai to owners. The project's starting point is initially Oslo, after which the campaign will be expanded to other Norwegian cities. The development of Everfuel's seamless hydrogen filling station network is also important.
Cabonline's goal is to put several hundred hydrogen cabs on the road throughout Scandinavia in the coming years. Nel ASA is demonstrating serious implementation of hydrogen technology with these field trials. Public subsidies will undoubtedly be tempting here, as the project clearly serves the recently adopted climate targets.
The Nel share is attempting a trend reversal in the EUR 1.65 area. If it succeeds, the entire hydrogen scene could attract more investor money again. For now, however, stubborn downtrends dominate the action.
Bitcoin Group - In for a penny, in for a pound!
Also caught up in the crypto downtrend is the Bitcoin Group share. Still greatly celebrated at the beginning of the year, the current minus from the high is over 40%. The fintech investment company from Herford is a direct profit driver of the crypto boom and recorded a dynamic start to the current year.
As with other trading service providers, the activity to be recorded by customers was enormously high due to the run on cryptocurrencies; especially since the beginning of 2021, trading turnover doubled here. In addition, the value of Bitcoin Group's holdings has also increased due to Bitcoin's price increases. These reached a new high in April and were well above EUR 200 million.
If you look at the price today, the value of Bitcoin has fallen by 30% in just 48 hours, and the current market capitalization of the Bitcoin Group has also slipped below the EUR 200 million mark. In for a penny, in for a pound, whoever joins now gets the operating business as a gift. And the next crypto rally could already be sealed.
SunMirror - Metals for the climate-neutral industry
Far from the power-guzzling crypto industry, some companies are keen to address climate-friendly issues. Such is the case with SunMirror AG, a holding company based in Zug, Switzerland. It participates worldwide in unique and, because of the high demand, rather critical raw material projects, such as those containing important industrial metals or rare earths. Demand in these metals has been outstripping supply for several months, and there is brisk turnover on metal trading exchanges at higher prices every day.
The Swiss Company's portfolio includes three properties in Western Australia: the Moolyella project (lithium, tin), the Kingston Keith project (gold and nickel) and the Cape Lambert project (iron ore). Whether considering the electric vehicle industry or energy storage, specialty metals are needed everywhere. Governments worldwide are concerned about the supply of these essential components because this is the only way to achieve internationally agreed climate targets. China, with all its political dimensions, is the largest consumer and producer at the same time.
SunMirror AG has recently also been able to attract institutional interest. Recently, the Company succeeded in placing a EUR 10 million convertible bond with a term until mid-2022. Since the subscription price of CHF 70 is significantly below the current price, the entire amount should flow into the Company's equity after conversion. A good setup for the Company's upcoming growth steps.
Meanwhile, the SunMirror share has established itself in the price over EUR 150 and the analysis house Sphene Capital is quite positive. The investment verdict is a Buy with a target price of EUR 174.30, a potential of 16% at the current price. The long-term potential is enormous here.