19. May 2021 | 10:41 CET
Nikola, dynaCERT, Ballard Power - Hydrogen market facing a turnaround?
Until mid-January, the shares of hydrogen companies knew only one direction, and that was steeply upwards. With just one or two negative news pieces, such as the balance sheet adjustments at Plug Power, and the prices went into a downward spiral. The environment could hardly be better. The US and Europe want to invest more in the hydrogen sector to achieve their ambitious climate targets. There are many applications for hydrogen, such as making energy storable and transportable and using fuel cells for propulsion. Today we take a look at three stocks in this sector.
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ISIN: US6541101050 , CA26780A1084 , CA0585861085
"[...] 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.
Nikola - An attempt at a turnaround
Nikola Corporation is a provider of zero-emission transportation and infrastructure solutions. Its businesses range from the design and manufacture of battery and hydrogen-powered electric vehicles, electric vehicle powertrains, vehicle components, energy storage systems, and hydrogen fueling stations. The Company has had to cope with some minor scandals but now seems to be slowly turning the corner.
The conversion and new construction of the production facilities in Ulm and Coolidge are nearing completion. Performance and durability tests for the battery-powered Tre BEV truck, which is said to have a range of up to 563 km, have been underway since the beginning of May. The same model is also to be available in a hydrogen version, but this is currently still a pipe dream. Nikola also plans to install hydrogen refueling stations throughout America. It will start with two stations in California.
Just yesterday, the Company announced a letter of intent for an order of 100 trucks by Total Transportation Services. Hardly any hydrogen stock has suffered as much share price loss as Nikola. Those who want to invest in hydrogen in connection with commercial vehicles should take a closer look at the stock.
dynaCERT - Good prospects
dynaCERT specializes in providing technologies to reduce carbon emissions. CAD 70 million and 17 years of development have gone into developing its flagship product, HydraGEN. HydraGEN generates hydrogen and oxygen on-demand through electrolysis and delivers these additives through the air intake to improve combustion. This process results in significantly lower emissions and diesel consumption. The Company's technology can be used in buses, trucks and all large diesel vehicles.
Passenger cars, ships and trains are also to be developed as future markets. The growth potential is enormous if only trucks were supplied worldwide. In Germany, trucks account for 35% of total CO2 emissions from transport. Of this, between 6% and 19% could be saved, thus conserving resources simultaneously.
The share of dynaCERT has been sold off in the wake of the hydrogen stocks and has broken some critical chart technical levels in the process. The low of March last year of CAD 0.325 could be tested again. At the latest, there should be a countermovement. Waiting for this mark could prove to be in vain, as since May 14, a buyer seems to be at work. A hammer formed, followed by a strong buy candle on May 17.
Ballard Power - Figures are not convincing
Ballard Power develops and manufactures hydrogen fuel cells for a range of applications. The Company's products and services are used in many industries, including materials handling, residential cogeneration, emergency power and transportation. Ballard's goal is to develop fuel cell energy for a sustainable planet.
The Canadian fuel cell manufacturer reported revenue of USD 17.6 million in the first quarter of 2021. Compared to the same period last year, this represents a decline of about 26%. Analysts' expectations were missed by a wide margin. Operating profit fell by 59% to minus USD 14 million. Overall, the loss still amounts to USD 17.8 million.
The share is in a clear downward trend. Nonetheless, the stock remains popular with investors and ranks #1 within its peer group, with valuations peaking above 122 times sales. An end to the selling pressure is not yet in sight. As an interested investor, one should wait and see whether an upward breakout from the sliding zone takes place.