Close menu

May 31st, 2021 | 11:14 CEST

Nel ASA, Royal Helium, Nikola, Plug Power - Here comes the second chance

  • Helium
Photo credits:

The correction of the stock exchange Highflyer of 2020, hydrogen, could be stopped for the time being. The first delicate, chart-technical stabilization tendencies can be recognized with many shares of the boom industry. The importance of hydrogen as an energy source will increase in the coming decades as governments work to reduce carbon dioxide emissions. Hydrogen produces no carbon dioxide when burned or used in a fuel cell to generate electricity. Thus, rosy times are ahead for the industry. Take advantage of the second chance!

time to read: 3 minutes | Author: Stefan Feulner
ISIN: NO0010081235 , CA78029U2056 , US6541101050 , US72919P2020

Table of contents:

    Nikola - Trend change

    A chart turnaround is currently in the offing at Nikola, the developer of battery and fuel cell trucks. The crisis-ridden Company, which went public via SPAC last week, received a buy recommendation at the end of last week, which pushed the share up by more than 18% in the course of trading. The US analyst firm BTIG sees Nikola, which plans to launch its battery-electric truck Tre this year, as a future disruptor of the truck market.

    For the current year, the analysts expect only a small number of deliveries. However, they are confident that production will start by 2022 at the latest. By 2024, BTIG expert Gregory Lewis expects sales of electric and hydrogen fuel cell-powered heavy-duty trucks to reach USD 1.4 billion. With the truck maker still in the pre-sales phase, the analyst sets the price target at USD 18 in his initial assessment.

    If the downward trend at EUR 16.30, which has been in place since November, were to be broken, there would be even more potential technically. Initially, the 200-day line at EUR 17.80 would be the target before the annual high at EUR 30.40 beckons. Although there are currently great opportunities for a turnaround, one should not forget that Nikola is a very volatile and highly speculative investment at this stage. BTIG is also optimistic about Plug Power. The Company is already a step ahead of Nikola, as it already has a commercial business in forklifts. In an initial assessment, the price target was USD 40, and the verdict is "buy."

    Royal Helium - The start of production is getting closer

    In contrast to the hyped hydrogen shares, helium companies are still in the shadows. The application areas for helium, the most common element in the universe alongside hydrogen, are also extensive and at least as important. Demand for helium is rising sharply in the healthcare sector, in chip manufacturing and in the production of quantum computers. According to expert forecasts, demand in the rapidly growing space business is likely to explode in the next few years due to companies such as SpaceX. Currently, NASA is the largest buyer worldwide. On the other hand, there is a shortage of supply.

    There are currently only a few pure helium companies on the stock market to participate in the rising demand cycle. Royal Helium is the second-largest helium landowner in North America and has access to approximately 400,000 hectares of prospective helium land in southern Saskatchewan, Canada. The projects have the perfect infrastructure and are located close to highways, roads, cities and existing oil and gas infrastructure.

    Last month, Royal Helium announced a milestone. Test drilling at the Climax I through III projects have confirmed an economically viable concentration of helium. The Company can now go straight into production here.

    The cash flow generated is to be used to finance further test drilling. In contrast to the production of gold or silver, with helium, it is possible to go into production immediately with a drilled hole. This circumstance enables Royal Helium to produce cash flow immediately.

    Additional capital, which is being generated in a private placement currently underway, is expected to help accelerate the process. For this purpose, 30 million new shares in combination with 15 million warrants will be issued at a price of CAD 0.50. As a result, the Royal Helium share price came under pressure in the short term and reached a low of EUR 0.33. Currently, the share price has recovered to EUR 0.48. Should the broad resistance zone at EUR 0.50 be broken through, the all-time high on a closing price basis at EUR 0.54 is already within reach. An exciting Company with the prospect of rapidly increasing cash flow.

    Nel ASA - First signs of strength

    Last week's horror week began when the Spanish energy supplier Iberdrola withdrew an already announced major order from the Norwegian hydrogen specialist Nel ASA. Iberdrola awarded the order to the US competitor Cummins. A selling wave of the Nel share was set in motion, leading the price once again to the support area around EUR 1.63. This mark, which had been tested several times in recent weeks, proved to be stable again so that the price approached the resistance area of EUR 1.79 in the week.

    Should this level be breached due to massive overselling, the EUR 2 mark already awaits as an interim target. The 200-day line at currently EUR 2.23 would then be the next step. Fundamentally, we still see the Nel ASA share as too expensive. A volatile, technical countermovement with a chance of between 20% and 30% price gains is not unlikely. However, the Company's market capitalization of EUR 2.45 billion is still clearly too ambitious.

    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 in the future hold shares or other financial instruments of the mentioned companies or will bet on rising or falling on rising or falling prices and therefore a conflict of interest may arise in the future. conflict of interest may arise in the future. The Relevant Persons reserve the shares or other financial instruments of the company at any time (hereinafter referred to as the company at any time (hereinafter referred to as a "Transaction"). "Transaction"). Transactions may under certain circumstances influence the respective price of the shares or other financial instruments of the of the Company.

    Furthermore, Apaton Finance GmbH reserves the right to enter into future relationships with the company or with third parties in relation to reports on the company. with regard to reports on the company, which are published within the scope of the Apaton Finance GmbH as well as in the social media, on partner sites or in e-mails, on partner sites or in e-mails. The above references to existing conflicts of interest apply apply to all types and forms of publication used by Apaton Finance GmbH uses for publications on companies.

    Risk notice

    Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and etc. on These contents serve information for readers and does not constitute a call to action or recommendations, neither explicitly nor implicitly. implicitly, they are to be understood as an assurance of possible price be understood. The contents do not replace individual professional investment advice and do not constitute an offer to sell the share(s) offer to sell the share(s) or other financial instrument(s) in question, nor is it an nor an invitation to buy or sell such.

    The content is expressly not a financial analysis, but rather financial analysis, but rather journalistic or advertising texts. Readers or users who make investment decisions or carry out transactions on the basis decisions or transactions on the basis of the information provided here act completely at their own risk. There is no contractual relationship between between Apaton Finance GmbH and its readers or the users of its offers. users of its offers, as our information only refers to the company and not to the company, but not to the investment decision of the reader or user. or user.

    The acquisition of financial instruments entails high risks that can lead to the total loss of the capital invested. The information published by Apaton Finance GmbH and its authors are based on careful research on careful research, nevertheless no liability for financial losses financial losses or a content guarantee for topicality, correctness, adequacy and completeness of the contents offered here. contents offered here. Please also note our Terms of use.

    Der Autor

    Stefan Feulner

    The native Franconian has more than 20 years of stock exchange experience and a broadly diversified network.
    He is passionate about analyzing a wide variety of business models and investigating new trends.

    About the author

    Related comments:

    Commented by Stefan Feulner on November 24th, 2021 | 11:28 CET

    SMA Solar, Royal Helium, RWE - Beware of inflation

    • Helium

    One can almost no longer hear this topic. In addition to the rising numbers of infections due to the fourth wave in the midst of the Corona pandemic and the escalating discussions about compulsory vaccination, the scarcity of raw materials and supplies is the central issue of our time. How long before the chip crisis in the automotive industry ends, can Apple produce enough smartphones so that we can put them under the Christmas tree for our loved ones, which, by the way, is also likely to be more expensive this year than last season. Scarcity will continue to accompany society in the coming years, be prepared for it.


    Commented by Nico Popp on November 12th, 2021 | 11:57 CET

    BASF, Royal Helium, Linde: This market is at the very beginning

    • Helium

    Industrial gases are in demand - and expensive. Even gases such as Helium are not immune to price increases. Chemical giant BASF calls the noble gas valuable in a press release and, together with Linde, presented a process that can be used to extract Helium from natural gas production. In other regions, the extraction of Helium, which is used in medical devices and chip production, even succeeds independently of by-products - given the long-term dwindling production of fossil fuels, this is becoming increasingly important. We present three stocks.


    Commented by Carsten Mainitz on November 3rd, 2021 | 12:34 CET

    Royal Helium, dynaCERT, Gazprom - What is next?

    • Helium

    The oil and gas sector has long been a popular investment area. However, when it comes to gas, hydrogen company share certificates have been more in the spotlight in recent months. A more exciting and also little-noticed field is the noble gas helium. We take a broad look at the investment stories in the gas sector.