27. July 2021 | 10:20 CET
NEL, dynaCERT, Daimler: The winners of the mobility revolution
Whether with hydrogen or with battery technology, mobility is transforming. In this article, we discuss where the journey could lead, why established automakers are gaining ground with ambitious plans, and whether there are still innovative solution providers around the mobility of the future that the market has not yet noticed.
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ISIN: NEL ASA NK-_20 | NO0010081235 , DYNACERT INC. | CA26780A1084 , DAIMLER AG NA O.N. | DE0007100000
"[...] Why should a modular electrolyzer cost more than a motorcycle? [...]" Sebastian-Justus Schmidt, CEO and Founder, Enapter AG
NEL: What is possible, what is threatening
NEL's share price has fallen sharply in recent months. The full-service provider around hydrogen experienced hype last year. At that time, the share price soared and was the talk of the town due to its triple-digit yield. At the beginning of this year, the share price rose well above the EUR 3 mark but then crashed. The Company's thin sales made it clear to investors that it was still a dream for the future despite all the praise for hydrogen.
In the meantime, the share has plummeted to a level of around EUR 1.65. We remember, though, before NEL became a darling of investors about a year ago, the share even traded below EUR 1.50 at times. Given the steep rise and the significant sell-off, one might think that the party around NEL is over. The share currently offers relatively little for all investors who want to invest based on facts. Although a price jump is always possible, especially with prominent stocks, the path to the top is paved with technical resistance. Investors should wait and see.
dynaCERT: What else does the hydrogen specialist have up its sleeve?
The dynaCERT share has not been a success story so far. The Canadian Company has lost a lot of ground in recent months, causing losses for investors. Despite the business model is quite promising: The Company manufactures electrolyzers installed in cars with diesel engines and mixes a small amount of hydrogen into the fuel. This admixture ensures that consumption and CO2 emissions are reduced by up to 19%. Since dynaCERT offers matching telematics software, these savings can also be documented. In this way, companies can receive CO2 certificates, which in turn can be monetized.
Most recently, dynaCERT concluded a strategic alliance with Galaxy Power, another Canadian company, to focus on new solutions and products related to hydrogen. Since the technology is already proven and suitable for heavy machinery or public transportation, the market can be curious about what dynaCERT has in store for the future. The stock has come back like many other hydrogen stocks. The focus on retrofitting existing vehicles, as well as the fantasy around new areas of operation, could push the stock back up. Keep an eye on the share!
Daimler strikes back
One Company that was considered threatened by the mobility turnaround just a year ago is Daimler. But like VW, the Swabians have also extricated themselves from the predicament. The new EQXX is scheduled to hit the market in early 2022 and will manage a fully electric range of 1,000 km in everyday use. Before that, other models with a range of around 750 km are already expected to compete with classic internal combustion engines. The Swabians are also coming out of the woodwork in other areas: the new S-Class can already drive largely autonomously under certain conditions.
Since brands such as Daimler are top-rated in important markets such as China, the innovations come at the right time. Daimler is increasingly closing the gap with Tesla and Co. If Daimler then delivers proven quality and continues to outpace the competition, which often still degrades customers to beta testers, shares like Daimler have further potential. However, the value has already risen significantly at present.
While NEL is not very promising currently, there is a lot to be said for Daimler. However, the share is by no means a newcomer, and a large part of its prospects are already priced in. The situation is different for dynaCERT. The stock is only known to those in the know but must be considered highly speculative due to its low market penetration. However, the starting position in case of positive news is promising for dynaCERT.