February 3rd, 2022 | 11:56 CET
dynaCERT, AMD, Alibaba - Clean air for big growth
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"[...] Why should a modular electrolyzer cost more than a motorcycle? [...]" Sebastian-Justus Schmidt, CEO and Founder, Enapter AG
Born in Bielefeld, she studied German, English and psychology. The emergence of the Internet in the early '90s led her from university to training in graphic design and marketing communications. After years of agency work in corporate branding, she switched to publishing and learned her editorial craft at Hubert Burda Media.
dynaCERT - Fresh air for sustainability investors
The Canadian city of Ottawa comes into focus due to the protest of thousands of truck drivers. The images of endlessly long truck convoys highlight the otherwise little-visible dimensions of international trade routes and the associated CO2 emissions in heavy goods traffic.
An internal combustion engine runs in every one of these trucks, around 1 billion worldwide and every day. In addition, 100 million new internal combustion engines are built every year. Whether in ships, buses, agricultural and construction machinery, or even trucks; all internal combustion engines developed on diesel technology contribute to global air pollution through their CO2 emissions. Transportation is essential to the global economy, but the level of air pollution can be reduced through patented and innovative technology.
Located just 450km from Ottawa is Toronto-based dynaCERT Inc. dynaCERT designs, manufactures and markets the installation of transportable hydrogen generator retrofit products for internal combustion engines. Both in Canada, the USA and internationally. dynaCERT offers a patented retrofit product for diesel engines in trucks and other frequently used transportation vehicles. The patented technology provides a power boost by injecting hydrogen and oxygen into the air intake from the internal combustion engine. It results in higher fuel efficiency and lower carbon emissions. Hydrocarbons and carbon dioxides are reduced. The hydrogen fuel contains virtually no CO2. The diesel fuel burns better with the help of hydrogen, according to the Company, because a higher flame speed is produced. More clean air, more power, and for the majority of popular diesel engines worldwide.
Investors focused on sustainability and environmental awareness can take advantage of the opportunity to invest in a solid Canadian company for more clean air in a global cleantech market with growth potential.
Q4 2021 Earnings Call: AMD on track for growth
Not every truck is rolling these days. The automotive industry is also facing challenges. The reason: the global semiconductor crisis, caused by supply chain slumps. For example, Elon Musk supplies his Tesla customers with cars with a USB port connection in the driver's cockpit. However, the new owners currently discover only yawning emptiness in this place.
But semiconductor producer AMD is just beginning to conquer the automotive segment for itself. CEO Lisa Su said about this in the earnings call on February 1, 2022: "It's a nice, stable business over many years. It's smaller, but it has grown well." What has grown is AMD in particular. That is because, according to Ms. Su, "2021 was a banner year for AMD, as we exceeded our aggressive growth targets and delivered another record year. Our business units grew significantly and set a new annual revenue record, with data center revenue more than doubling YOY. Annual revenue increased 68% to a record 16.4 billion, and we increased gross margin for the sixth consecutive year."
Finally, AMD is getting the green light from China. With its USD 35 billion acquisition of Xilinx, the deal is now expected to close this quarter after more than a year's delay. With this merger, AMD is tapping into another lucrative market entry in divisions such as telecommunications, including 5G. The air for competitor Intel is getting thin because AMD is catching up. Investors should stay invested. And those who want to stock up on AMD shares should not wait too long.
Alibaba - Room to move up with its own cloud
Speaking of China, when investor legends like Charlie Munger, Warren Buffett and Monish Pabrai invest in Alibaba, they expect an exceptionally high return on investment. US value investors all have one trait in common: a preternatural amount of patience to see the power of compound interest unfold.
In the last quarter, Alibaba posted a 6% EBITA improvement. The Silk Road digital route continues to expand with Jack Ma's foray into the cloud computing business. Alibaba is known for its versatility in e-commerce, retail, internet and accompanying technology.
Due to its immense growth the internet giant is more often than not catching the eye of government regulators. China is known to do things its way. A risk all investors should be aware of. However, the future prospect of conquering more world markets in the digital cloud is a growth opportunity that investors should not miss. While Amazon, with its cloud computing service AWS, shows an operating margin of about 30%, the margin of the Alibaba cloud is still in the low single digits. A cup of green tea and composure help with this global player, not only the grand seigneurs of Value investors, to keep calm and watch the Company grow.
dynaCERT is an investment with focus on sustainability, climate protection and innovation. AMD is competing with Intel and expanding business through the merger with Xilinx - hold or buy. Alibaba is on a value course with long-term growth prospects.
Conflict of interest
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