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April 25th, 2022 | 11:51 CEST

Hydrogen becomes marketable: Plug Power, dynaCERT, NEL

  • Hydrogen
Photo credits: pixabay.com

The energy transition is a long-term project. There must be no prohibitions on thinking about it. Only about a year ago, representatives of the automotive industry rejected hydrogen. In the meantime, however, a lot has happened. The sanctions against Russia have made energy more expensive, and hydrogen is now increasingly seen as a substitute for gas. In addition, more and more hydrogen projects around logistics projects and trucks are picking up speed. Reason enough to take a close look at the industry.

time to read: 3 minutes | Author: Nico Popp
ISIN: PLUG POWER INC. DL-_01 | US72919P2020 , DYNACERT INC. | CA26780A1084 , NEL ASA NK-_20 | NO0010081235

Table of contents:


    Dirk Graszt, CEO, Clean Logistics SE
    "[...] We can convert buses and trucks to be completely climate neutral. In doing so, we take a modular and incremental approach. That means we can work with all current vehicle types and respond to new technology and innovation [...]" Dirk Graszt, CEO, Clean Logistics SE

    Full interview

     

    Plug Power: Why the losses?

    Plug Power's stock first made a splash last week - and then collapsed like a soufflé left out too long. What happened? Plug Power announced earlier this week that it had received an order from Walmart to supply green hydrogen. Twenty tons are to be delivered daily. However, the Company's announcement did not provide any further details. The share price rose immediately after the news was published, but later skepticism prevailed. If one roughly calculates the value of the order, it should have a total volume of more than USD 40 million at prices of around USD 6 per kilogram. Since Plug Power only made sales of slightly more than USD 500 million last year, the order is not negligible. Additionally, Walmart could also demand more green hydrogen, and such an order could have a signaling effect.

    A little more than a year ago, share prices would have rolled over if a hydrogen stock had gone the way Plug Power has since. But as is so often the case, the market has granted advanced praise to new technology, and now that the technology is slowly becoming respectable, the market has already lost interest. If Plug Power can continue to grow, the stock market should not be able to ignore the new prospect. The marks between EUR 18.70 and EUR 25.70 are interesting for the further directional decision.

    dynaCERT: Can the Company score at the industry trade fair?

    While the Plug Power share is trading in no man's land in chart terms, dynaCERT is at the bottom: the share price fell by 64% last year. dynaCERT offers conversion kits for trucks and heavy equipment with diesel engines. These conversion kits are designed to reduce fuel consumption and thus CO2 emissions by 19%. So far, the technology has not achieved a market breakthrough, but dynaCERT is keeping its eye on the ball and recently announced that it would exhibit at Truck World in Toronto. The industry gathering took place this past weekend. dynaCERT's attractions at the event included discounts and rental offers for those interested in testing the technology.

    In addition to the conversion kits, dynaCERT also offers telematics software for reporting CO2 and fuel savings. This is especially important for companies that want to measure their environmental footprint. At first glance, the share appears to be of little interest due to the long-term downward trend. However, a second look reveals dynamic intermediate rallies, for which the value has always been good in the past. Any indication of market success for dynaCERT could cause the share, which is now trading around EUR 0.12, to jump. However, the stock is only suitable for experienced investors who are used to investing with hot irons.

    NEL: First countries get serious about hydrogen

    The performance of NEL also suggests that hydrogen stocks could experience a second lease of life. The Norwegian hydrogen all-rounder has left its lows behind and now shows a similar chart picture to Plug Power. Most recently, Denmark's hydrogen offensive created a good mood around NEL - refueling facilities are needed for hydrogen taxis. Although the good news has not yet penetrated the market, the large companies such as NEL and Plug Power will decide with good deals whether the market will also pick up again for smaller representatives.


    Investors have a variety of options depending on their risk appetite. Stocks such as NEL and Plug Power are considered established and, at least from a chart perspective, not entirely exhausted. However, the valuations are high, and a certain growth is certainly priced in at the current levels. With dynaCERT, on the other hand, many investors have already said goodbye. The scope for surprise is therefore greater. Hydrogen stocks remain speculative.


    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.

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    Der Autor

    Nico Popp

    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.

    About the author



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