October 22nd, 2021 | 12:47 CEST
NEL, First Hydrogen, Rock Tech Lithium: Why investors must rethink now
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"[...] Why should a modular electrolyzer cost more than a motorcycle? [...]" Sebastian-Justus Schmidt, CEO and Founder, Enapter AG
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.
NEL: The wind has changed
One stock that has known only the way down for months is NEL. The Norwegian hydrogen company offers services around storage, transport and production of hydrogen. Most recently, NEL reported record sales: At EUR 24 million, the Company increased its revenue by a whopping 55% in the third quarter of the fiscal year. However, the operating loss increased compared to the same period last year. Since the market nevertheless acknowledged the figures with price gains, this is a good sign - for NEL shareholders and the market as a whole.
For months, NEL was considered a stock from the category of dreams of the future. The market valued the share more and more like an industrial company that has to deliver results in the here and now. If rising sales alone and falling order backlogs are enough to catapult the stock upward by double digits, the market has changed its view. For NEL and all other speculative alternative propulsion stocks, that is a good sign.
First Hydrogen: Hydrogen delivery trucks hit the road
While NEL has some resistance to overcome on the way up, the situation is different for First Hydrogen. The stock is still relatively unknown and has tended to move sideways in recent months. First Hydrogen, together with partners such as Ballard Power and AVL, wants to put hydrogen-powered delivery trucks on the road. Just recently, the Company announced that it had completed a prototype. The vehicle has a range of 500 kilometers and enables the climate-neutral transport of goods. First Hydrogen wants to score points on the British market with the demonstration vehicle and says it is confident that it will soon convince its first customers.
Since the Company emphasizes that it can adapt its vehicles, which are based on the bodies of well-known manufacturers, to the exact purpose of the respective end-customers, customers from various industries are conceivable. First Hydrogen's solution could be particularly successful in regions with a non-existent charging infrastructure compared to electromobility and could also score points with fast refueling times. The share recently hovered between EUR 1.00 and 1.40 in German trading. The friendlier environment for speculative stocks could also provide First Hydrogen with a tailwind. Those looking for speculative stocks off the beaten track can take a closer look at the value.
Rock Tech Lithium: The trade fair has been called (for now)!
Since the announcement of the factory plans as a neighbor of Tesla in Brandenburg, the German-Canadian mining and technology Company Rock Tech Lithium is no longer an insider tip. Within a week, the share has posted a return of more than 100% in some cases. In recent days, however, the temporary setbacks are increasing - again and again, the price came back strongly but recovered again immediately. Investors should not be unsettled by such price movements. It is precisely a recovery after price declines that shows that demand for the share is still high. In addition, Rock Tech has successfully completed a pilot project to produce lithium hydroxide monohydrate and is planning a listing on the Nasdaq tech exchange. So fundamentally, too, the Company is moving forward in leaps and bounds. Given last week's share price fireworks, however, the potential appears to be limited for the time being.
The new risk appetite of many investors is an extremely positive signal for all shares related to climate-neutral drive technology. The example of NEL shows that company announcements that would have triggered a sell-off or at least a shrug of the shoulders months ago are now being interpreted positively. Unknown stocks in particular, such as First Hydrogen, could benefit from this. However, investors should always add such speculative stocks to the portfolio with a sense of proportion.
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