June 15th, 2022 | 12:46 CEST
Hydrogen. Hope and facts: Plug Power, dynaCERT, NEL
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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.
Plug Power: Operational progress.. and what is the market doing?
Plug Power is currently beating the advertising drum and presenting itself to investors at several conferences. At the same time, the Company, which has gained many prominent cooperation partners in recent years, is also reaching for the stars in Europe. Together with Renault, the Hyvia fuel cell vehicle is set to take off. In Denmark, electrolyzers with a capacity of one gigawatt are being installed, and at the same time, the Norwegian competitor NEL is being dealt a blow on its doorstep. Other areas of activity for Plug Power are Spain, where it plans to produce green hydrogen together with Acciona, and Belgium, where, according to the Wall Street Journal, 100 MW of electrolyzers produced by Plug Power could be in service at the port of Antwerp. And what is the share price doing? It has been crumbling for a few days now!
After a small intermediate spurt a few weeks ago, the Plug Power share price is approaching the low again. Below EUR 12.20, the value could slide even more significantly. The share is thus moving further and further away from its high beyond the EUR 40 mark. The reason for this is the turnaround in interest rates and the aversion of many investors to growth stocks. The Plug Power share is still ambitiously valued. This valuation may be justified against the background of the operational successes, but in the current market environment, skepticism prevails among many investors.
dynaCERT: In search of a lucrative niche
There has never been so much skepticism about the Canadian supplier of diesel conversion kits dynaCERT as there is at present. The reason: although experts say the technology is capable of saving fuel and reducing CO2 emissions, and although dynaCERT has the necessary software for reporting emissions, the share price is not getting off the ground. On the contrary: at times, the share, which just over a year ago was named a Top Pick 2021 with a price target of CAD 2.20 by the Canadian analyst firm Haywood, was trading at CAD 0.11. Investors are still waiting for dynaCERT's solutions to gain market acceptance.
In the meantime, the Company seems to be taking a new approach and wants to make heavy machinery, in particular, greener with its conversion kits. Especially in the mining sector, it could make sense to convert expensive equipment and thus sharpen the ESG profile of participating companies. The market capitalization of around CAD 40 million currently reflects little hope on the part of the market. However, even the first major order could herald a new era for the stock. Investors with room in their portfolio for such hot irons can get a foot in the door with dynaCERT. Traders with a good sense of developing momentum are also looking closely at dynaCERT. On the other hand, those who like to take it easy when it comes to investing are better off following any action from the sidelines.
NEL: Danger below EUR 1!
A place on the sidelines would also have been good for NEL shareholders in recent days - the share of the Norwegian hydrogen pioneer has lost almost 10%. NEL offers everything around hydrogen production, storage and distribution and is one of the great hopefuls. As with Plug Power, the market does not reward operational success. That may be because shares like NEL and Plug Power have received too much praise in recent years and the companies are still not profitable. Nevertheless, the NEL share should find a bottom above the EUR 1 mark. Below that, trouble threatens!
Whether a hydrogen stock lands new cooperations, steadily increases its sales or hardly makes any sales - Plug Power, as well as NEL and dynaCERT, are not getting off the ground on the stock exchange at the moment. The latter company is currently looking for a new niche in the heavy machinery sector. The PDAC mining trade show is currently taking place in Toronto; whether dynaCERT can make a breakthrough here remains uncertain. What is certain, however, is that more or less all shares associated with hydrogen are currently in a difficult position - and, conversely, have comeback potential when the wind shifts.
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.
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