September 27th, 2022 | 13:49 CEST
Energy for the stock market! Siemens Energy, TubeSolar, Nel ASA, Plug Power - Green innovations are needed now!
Table of contents:
"[...] When we acquire something, we want to make sure that the acquisition fits with our strategy and has the potential to be successful for our shareholders. [...]" John Jeffrey, CEO, Saturn Oil & Gas Inc.
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.
Siemens Energy - Analysts remain positive
In 1866, Werner von Siemens converted mechanical energy into electrical energy and made it usable for everyday life. He brought the courage, drive and determination we need today. Increasingly extreme weather events and rising sea levels are unmistakable signs of one of the greatest challenges of our time: climate change. At the same time, some 850 million people still live without reliable access to electricity, which is the foundation for sustainable development.
The highly celebrated spin-off of Siemens' energy division led to the listing of Siemens Energy AG in the fall of 2020. An initial euphoric movement, clearly justified by the green business approach, ended with a high of around EUR 35 in the hydrogen rush of January 2021. Nothing was as en vogue as GreenTech stocks. At Siemens Energy, the focus of the press is currently on the margin problems at its Spanish subsidiary Gamesa and the turbine maintenance issues at the Nord Stream 1 gas pipeline, which are attracting a lot of media attention.
The Company's stock had to take a downturn for the time being after profit corrections, but analysts' opinions still read very well. Goldman Sachs, for example, has left its Buy rating with a 12-month target of EUR 25.70, while Berenberg even believes the Munich-based company is worth EUR 34 due to a considerable investment backlog in the power grids. The current price of EUR 11.65 still takes courage, but the opportunities should outweigh the risks at this level.
TubeSolar AG - Good climate solutions up its sleeve
Augsburg-based TubeSolar AG is pursuing a highly interesting GreenTech approach with a combination of solar and shading technology. The Company is the result of a successful transformation of the former OSRAM®/LEDVANCE® fluorescent tube production to the current photovoltaic tube production in Augsburg. The patented technology has been used to manufacture innovative photovoltaic thin-film tubes since 2019.
The principle is simple and no less obvious. With the climate development of recent years, there are extreme weather situations, which occur on a case-by-case basis in too much sun or too little water. However, due to years of soil compaction, intermittent water in the case of heavy rainfall is a horror event for agriculture, as valuable plants are destroyed, and the large amount of water runs off unregulated. The soils, however, remain too dry.
With TubeSolar's technology, the goal is to protect e.g. hop plants from damaging environmental influences and, at the same time, increase the income of farms and, thus, their resilience to crop failures. To this end, TubeSolar provides a canopy of hop plants with PV modules in an integrated agri-PV system. Hops are ideally suited for such systems because of their shade tolerance, generating less stress from solar radiation and less evaporation. Very clever! TubeSolar AG's projects have already received funding from the Bavarian Ministry of Economic Affairs, amounting to EUR 10.83 million from the last energy research program.
TubeSolar's shares are down about 20% this year. No wonder, since all GreenTech shares recently experienced a real sell-off. Still, the Company plans to expand production to an annual capacity of 250 megawatts by 2025. But perhaps real demand in agriculture will provide an unexpected boost. With a market capitalization of EUR 48 million, TubeSolar is a good, sustainable portfolio addition.
Nel ASA and Plug Power - Where will the sharp correction end?
Highly volatile markets are the best to grip technically, as both good and bad news often fizzle out due to underlying base trends. For the NASDAQ, technical indicators such as Momentum, MACD and Stochastic speak for further sell-offs with frequent counter-movements, which can also be stronger sometimes.
The Norwegian Nel ASA and the US hydrogen giant Plug Power move somewhat in parallel because of the sector affiliation, even though Nel ASA is not part of the US growth exchange but is based in Oslo. Momentum is pointing sharply down for both stocks, with Plug Power still able to show a maintained relative strength index (RSI). Unfortunately, the 50-day line has been undercut in the last week. But with Plug at EUR 23.9, the next support is already at EUR 21 to 22. The situation at Nel ASA is more dismal. After 12 months, the price is already down by more than 20%. However, there is important support at EUR 1.10, which could quickly bring the current price of EUR 1.17 back on track. The momentum is not yet playing along, but the RSI has already turned here as well.
The two GreenTech stocks, Siemens Energy and TubeSolar, have already reached interesting entry levels. On the other hand, the hydrogen protagonists remain analytically expensive even at the level reached, but they have always been in demand in rapid upward corrections. The fact is that when the NASDAQ turns upwards, the former favorites are again at the forefront. But where is the golden entry point?
Conflict of interest
Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as "Relevant Persons") may hold shares or other financial instruments of the aforementioned companies in the future or may bet on rising or falling prices and thus a conflict of interest may arise in the future. The Relevant Persons reserve the right to buy or sell shares or other financial instruments of the Company at any time (hereinafter each a "Transaction"). Transactions may, under certain circumstances, influence the respective price of the shares or other financial instruments of the Company.
In addition, Apaton Finance GmbH is active in the context of the preparation and publication of the reporting in paid contractual relationships.
For this reason, there is a concrete conflict of interest.
The above information on existing conflicts of interest applies to all types and forms of publication used by Apaton Finance GmbH for publications on companies.
Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and the like on news.financial. These contents are exclusively for the information of the readers and do not represent any call to action or recommendations, neither explicitly nor implicitly they are to be understood as an assurance of possible price developments. The contents do not replace individual expert investment advice and do not constitute an offer to sell the discussed share(s) or other financial instruments, nor an invitation to buy or sell such.
The content is expressly not a financial analysis, but a journalistic or advertising text. Readers or users who make investment decisions or carry out transactions on the basis of the information provided here do so entirely at their own risk. No contractual relationship is established between Apaton Finance GmbH and its readers or the users of its offers, as our information only refers to the company and not to the investment decision of the reader or user.