11. November 2020 | 13:22 CET
NEL ASA, dynaCERT, Bayer: Reallocation offers excellent opportunities
After yesterday's triumphant announcement regarding a possible vaccine against the Corona Virus, a rift in the stock market seems to be in full swing. Highly praised tech shares and the profiteers of the Corona Crisis are falling through the bank. In contrast, there is a rebirth of the old economy and cyclical stocks. Oil stocks are also picking up again. The hope for an economic revival is becoming more tangible and creates excellent opportunities for the Fallen Angels.
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ISIN: CA26780A1084 , NO0010081235 , DE000BAY0017
Climate change mainstream again
The Corona Pandemic has been the number one topic of conversation in recent months; however, climate change will likely find its way back into mainstream media once life normalizes again. "Fridays For Future" and Greta, will once again call for the world to be saved, and politicians who are currently acting as corona saviors, such as Bavarian Prime Minister Markus Söder, will once again put the ban of the internal combustion engine on the agenda.
Green technology and hydrogen
This is precisely where dynaCERT Inc., which was founded in 2001, comes in. The basic idea of the Canadians is to reduce the pollutant emissions of diesel-powered vehicles. For this purpose, retrofitting units for diesel engines have been developed which use hydrogen as a catalyst. This reduces both fuel consumption and CO2 emissions in peak times, by up to 20%.
Trucks (still) in the foreground
The target group of dynaCERT is, however, not yet the millions of passenger cars, but primarily fleet operators. The goal is to retrofit the millions of trucks still running on diesel. With the specially developed software "HydraLitica" (TM) it is possible to monitor the fuel savings. Building on this platform, the Company recently announced additional services such as fleet management, route planning, driver safety and load management. The Company's technology is currently being tested in more than 400 vehicles.
Analysts extremely bullish
The analyst firm GBC Research seems to be highly impressed. The experts set the dynaCERT share at a clear buy. The target price was set at no less than CAD 2.20 by the end of 2021. As of yesterday, the share price was at CAD 0.50, offering considerable upside potential. The Canadians have definitely taken the pulse of the times.
Insiders started buying
At the moment, positive and negative reports are coming from the pharmaceutical and agricultural giant, Bayer AG. After the share price reached a 5-year low of EUR 40.36 last week, the first insiders started to buy. Bayer CEO, Werner Baumann, ordered shares worth around EUR 2.45 million. Also, Chief Financial Officer Wolfgang Nickl and Heiko Schipper, responsible for the health products business, increased their portfolio with shares for EUR 154,000 and EUR 309,000 respectively.
Hope for approval
The application for approval of Bayer's renal drug, Finerenon, in the USA and the European Union is also positive. The applications were submitted simultaneously to the US Food and Drug Administration (FDA) and the European Medicines Agency (EMA). Finerenon is considered a new treatment option for slowing the progression of chronic kidney disease. According to industry experts, the drug has a potential of up to EUR 1.5 billion per year.
Sword of Damocles Monsanto
However, the glyphosate controversy continues to dominate all news. The US judge in charge is putting pressure on the Leverkusen-based Company. He wants to resume negotiations in some unresolved cases. Bayer wanted to take the litigation off the table last summer with a large-scale settlement of USD 9.6 billion. However, this settlement was rejected by the court. According to the Bayer leadership, the settlement package increased to around EUR 11.6 billion as of the beginning of November. The uncertainty remains. In the last two weeks, the price of the Bayer stock has recovered by almost 20% and, from a chartist's point of view, is on the verge of the downward trend that began in June and currently stands at just under EUR 49. In the event of a successful breakthrough, the gap to EUR 52.60 should be closed quickly.
NEL ASA keeps hoarding orders
Almost every week the Norwegian hydrogen specialist can shine with new orders. This time the subsidiary, Nel Hydrogen US, received orders for PEM electrolyzer cell stacks worth more than USD 5.4 million from none other than Raytheon Technologies. Nel Hydrogen US is the exclusive supplier of electrolyzer stacks to the United States Navy. The stacks produce vital oxygen for the crews on several classes of nuclear-powered submarines.