December 16th, 2021 | 10:37 CET
Daimler Truck, dynaCERT, BASF: Hydrogen powers depots
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"[...] We are committed to stay as the number one Canadian and global leader in the Hydrogen-On-Demand diesel technology [...]" Jim Payne, CEO, dynaCERT Inc.
At home in Southern Germany, the passionate stock exchange expert has been accompanying the capital markets for about twenty years. With a soft spot for smaller companies, he is constantly on the lookout for exciting investment stories.
Daimler Truck: Good prospects, but?
It was only about a week ago that Daimler Truck went public. The IPO was watched around the world and was, on balance, a success. Currently, the share is trading around EUR 32 and thus significantly above the issue price. Already in the run-up to the IPO, analysts had welcomed the split of Daimler and Daimler Truck. The analysts at Goldman Sachs, for example, expect double-digit margins over five years. These are already common among competitors, such as Volvo. They also say Daimler Truck is currently favorably valued. J.P. Morgan also sees Daimler Truck on the way to robust margins and stable cash flows.
However, if one looks into the more distant future and considers climate protection, the outlook is less promising. Even Daimler Truck does not expect business with hydrogen trucks to pick up until the second half of 2025. Given the government's ambitious climate plans, a development that should already be gaining momentum today is still plodding along on the test track at Daimler Truck. The Swabians probably rely on the fact that thorough development work will be more successful in the long term, and they can also buy in if necessary.
dynaCERT: Hydrogen solution as a transitional technology
Currently, several smaller companies are pursuing innovative paths in the field of hydrogen. One of these companies is dynaCERT. The Canadians have developed a technology that reduces both fuel consumption and CO2 emissions of existing diesel engines by about 19%. To this end, the Company sells conversion kits that add a hydrogen mixture to the diesel and thus make the engine run more efficiently. Also included is telematics software that allows CO2 savings to be measured and documented. The latter is particularly important for companies that must be measured based on their ESG indicators. Nowadays, this applies to all listed companies.
While Daimler Truck is likely to buy more in the area of pure hydrogen-powered trucks to secure future technology, dynaCERT could be an alternative for all companies that operate heavy machinery or maintain a fleet of vehicles to make existing vehicles more environmentally friendly. The technology has made some significant steps towards successful sales in recent weeks. Still, the share is not really getting off the ground. Arguably, the market is waiting for concrete orders. As the stock is always good for short rises, speculative investors can keep an eye on it.
BASF: What Ludwigshafen and Denmark have in common
BASF is also high up on the list of the most significant climate sinners in the DAX. The Company is already taking steps to make itself more sustainable. The sticking point, however, is its hunger for energy. The Ludwigshafen plant alone consumes as much energy as the whole of Denmark. Covering that with green energy sources will be difficult. Although BASF is considered an extremely solid stock, the share price has not shown any positive development recently - it has declined by 6.7% over one year. The share is in a downward trend.
While BASF is anything but promising, there are at least positive analyst assessments for Daimler Truck - even if things do not seem to be progressing around future hydrogen technology. In the case of dynaCERT, market participants are waiting accordingly for the breakthrough in the market. Those who believe in the technology and think anti-cyclically can take a closer look at the value. There are opportunities for more climate protection here, especially with diesel fleets.
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