March 3rd, 2022 | 13:49 CET
dynaCERT, SFC Energy, Coinbase - These are the winners!
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"[...] Why should a modular electrolyzer cost more than a motorcycle? [...]" Sebastian-Justus Schmidt, CEO and Founder, Enapter AG
The native Rhineland-Palatinate has been a passionate market participant for more than 25 years. After studying business administration in Mannheim, he worked as a journalist, in equity sales and many years in equity research.
dynaCERT - Stop of Russian gas imports makes bridge technology more attractive
The Canadian hydrogen pioneer dynaCERT is one of the companies that could benefit from the crisis. After all, the challenge of climate change - limiting the global average temperature increase to a maximum of 1.5°C - has not vanished into thin air due to the Ukraine conflict. On the contrary, the elimination of Russian natural gas eliminates a more climate-friendly bridging technology. Instead, coal-fired power plants will have to stay online longer, which means that larger amounts of emissions than planned will have to be compensated for.
In this context, the most recent report of the Intergovernmental Panel on Climate Change gave virtually all the countries examined poor marks for their efforts to date. It is here where dynaCERT's patented HydraGEN technology could come into play, increasing the efficiency and reducing the emissions of diesel engines by injecting hydrogen and/or oxygen produced by portable hydrolyzers. In order to effectively document these savings, the Company has also designed the matching telematics solution "HydraLYTICA". It accurately records the CO2 reduction and thus offers companies the opportunity to offer these savings as certificates on the market.
dynaCERT has had some successes in recent months, such as an order for 150 HG1 hydrolyzers by TruckSuite Canada. On the other hand, the supply chain disruptions caused by the COVID-19 pandemic have made it difficult for the Company to maintain its position in the market. After a few months of diving, during which the share price plummeted from over CAD 0.86 to just under CAD 0.12, the Company recently reported back with a change in management: in addition to COO Robert Maier, board member Stephen Kukucha also left the Company. It remains to be hoped that a rapid replacement will coincide with a jump-start in sales of the technology. The analysts at GBC Research remain confident and convinced of the technology. The recommendation remains "Buy," with a price target of CAD 1.87.
SFC Energy - Price rally due to accelerated energy turnaround?
SFC Energy, based in Brunnthal, Upper Bavaria, is a manufacturer of self-sufficient long-term power supplies based on fuel cells, which are usually operated with methanol (the largest 2,500 Watt system of the 50kw class also with pure hydrogen). These power supplies are used, for example, at weather measuring stations in offshore wind farms or in other locations that are difficult to access. In addition, the Company also provides the necessary power electronics, measurement technology, etc., which are required for highly demanding measurements or in critical industrial production.
Thus, the Company is a profiteer of the expansion of renewable power generation. Nevertheless, the Bavarian share has not escaped the downward pull of hydrogen stocks in recent months. Operationally, however, things are moving forward mightily. SFC announced the tripling of its production capacity and recently reported incoming orders for EFOY fuel cells (direct methanol fuel cells) by existing customers, Live View Technologies and Fuel Cell Systems (both from the UK). The analysts of First Berlin Equity Research are optimistic about the future of SFC. The target price is EUR 44 on a twelve-month horizon, combined with a clear buy recommendation. This would be equivalent to almost a doubling with the current price level.
Coinbase - A lifeline for beleaguered Russians?
One should certainly not make the mistake of projecting Putin's lonely decisions onto the Russian population. Most people have very different problems in their everyday lives than the annexation of Crimea or separatist aspirations in the Donbas. And these are radically exacerbated by the sanctions put in place by the global community. For example, many Russian pensioners receive support from their relatives living abroad, who can no longer send payments due to the SWIFT exclusion. Another problem is the accelerated decline of the ruble. Many feel painfully reminded of the ruble crisis of 1998 when the national currency lost more than 60% of its purchasing power virtually overnight.
One possible way out is for individuals to flee into cryptocurrencies. These are difficult to regulate from the outside due to the lack of centralization. Accordingly, bitcoin has already seen a strong upward movement after Russia invaded Ukraine, rising to around USD 44,000, peaking at almost 20%. The corresponding crypto exchanges, such as industry leader Coinbase, are also likely to be among the beneficiaries of this development.
The Company recently reported revenues of USD 7.4 billion for 2021, representing a massive increase of 544% compared to the previous year. Nevertheless, investors were not impressed at first and sent the stock on a downward spiral with the prospect of stagnant growth. Analysts believe the share has an upside potential of a good 50%.
The stock markets continue to be dominated by the Ukraine conflict. Coinbase is currently favorably valued but also risky due to impending regulation. SFC is the more solid investment. The story of dynaCERT remains exciting. The technology has great potential.
Conflict of interest
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