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Matthew Salthouse, CEO, Kainantu Resources

Matthew Salthouse
CEO | Kainantu Resources
3 Phillip Street #19-01 Royal Group Building, 048693 Singapore (SGP)

info@krl.com.sg

+65 6920 2020

Interview Kainantu Resources: "We hold the key to growth in the Asia-Pacific region".


Justin Reid, President and CEO, Troilus Gold Corp.

Justin Reid
President and CEO | Troilus Gold Corp.
36 Lombard Street, Floor 4, M5C 2X3 Toronto, Ontario (CAN)

info@troilusgold.com

+1 (647) 276-0050

Interview Troilus Gold: "We are convinced that Troilus is more than just a mine".


John Jeffrey, CEO, Saturn Oil + Gas Inc.

John Jeffrey
CEO | Saturn Oil + Gas Inc.
Suite 1000 - 207 9 Ave SW, T2P 1K3 Calgary (CAN)

info@saturnoil.com

+1-587-392-7900

Saturn Oil + Gas CEO John Jeffrey: "Acquisition has increased production by 2,000%"


29. January 2021 | 13:15 CET

Nokia, Nikola, dynaCERT: Where is the next short squeeze lurking?

  • Hydrogen
Photo credits: pixabay.com

Robinhood or Reddit traders have been causing a stir on the stock markets for days. They organize themselves in forums on the Reddit platform and blow up a storm on selected stocks. Thanks to broker apps like Robinhood, an investment is just a few swipes away and millions of dollars from small investors flow into a stock. Preferred targets of these Robinhood traders are stocks with a high short ratio. The organized traders want to bring about a short squeeze by rising prices, as was seen a few days ago with GameStop's share. The stock shot up from less than 20 to more than 200 dollars within a very short time. Nokia and Nikola also recently saw some upward jerks. Which stocks could follow?

time to read: 3 minutes by Nico Popp
ISIN: CA26780A1084 , US6541101050 , FI0009000681


Jim Payne, CEO, dynaCERT Inc.
"[...] 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.

Full interview

 

Author

Nico Popp

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.

About the author


Nokia: 50% return in a few hours

After GameStop, Reddit traders took a look at the Nokia share. The stock was considered too dull until recently. The former stock market star of the 1990s eked out an existence as a network equipment supplier. The prospect of heavy regulation of critical 5G infrastructure raised hopes that Nokia would win business, despite the cheaper competition, from China. But a few posts on Reddit were all it took for the stock to shoot up 50% within hours on Wednesday. The flood of buy orders pushed the share price up, and presumably, short-sellers, who had previously sold the stock short, also had to close positions.

Nokia is now trading back at Tuesday's level, but the incident shows how powerful private investors have become when joining forces in forums. The situation becomes even more spectacular when you consider the volumes that Reddit traders are moving together: On Wednesday, a total of 296 million Nokia shares changed hands. Within the past thirty days, this value has averaged around 37 million. This market power can put a hedge fund, which previously made large bets on falling prices, in a bind. Whether the online community will target Nokia again is unclear.

Nikola: are the Reddit traders coming back?

One stock that is also said to be heavily short by some hedge funds is Nikola. The hydrogen pioneer plans to put trucks with alternative powertrains on the road soon. After a product video in the summer raised allegations of manipulation, the value slumped significantly. It is suspected that hedge funds borrowed shares in Nikola on the market and immediately sold them. As a result, there is an obligation to return the shares at a later date. If the speculation is successful, such shares can be rebought at lower prices and hedge funds collect profits. But if private investors buy up shares in a concerted action, the short-sellers' book losses increase rapidly. They are then often forced to buy into already rising prices to cap their risk, which is theoretically unlimited for short-sellers.

In the case of Nikola, the price recently jerked upwards just a little but then calmed down again. The background could also be that many smartphone brokers have suspended trading on specific stocks in recent days, ostensibly with the argument that they want to protect customers from volatile values. However, the net is seething: The brokers made common cause with hedge funds, so the reproach. The organized Reddit community may just be gathering, moving to new providers and then trying again with Nikola.

Popular targets for Reddit traders are stocks of companies with new technology viewed critically by the financial establishment. Critical comments regarding the valuation of such shares from established players in the financial scene, such as analysts or even significant investors, are interpreted as arrogance by private investors who have only known rising prices for years. Further such attacks may take place in the coming days and weeks.

dynaCERT: Why the stock fits into the target scheme

dynaCERT could also fit into the target scheme of Robinhood traders. The Canadian supplier of hydrogen-based electrolysis systems, suitable for the environmentally friendly conversion of diesel engines, announced a strategic partnership with Harold Martin last week. The goal: to make dynaCERT's products available to a broader market. Despite the good news, dynaCERT's stock continues to find it challenging to break into new price regions. Presumably, short-sellers position themselves again and again and depress the price of the traditionally volatile stock.

This is also supported by the fact that positive news, such as from the analyst recommendation by brokerage house Haywood in mid-January, repeatedly lead to rapid and steep price increases. dynaCERT is not only a dynamic share due to its business model in line with the spirit of the times and its proven technology. It has also been the plaything of short-sellers in recent months. Will this situation now also attract Robinhood traders? Given its lower market capitalization compared to Nokia or Nikola, dynaCERT could be a worthwhile target for this new generation of stock market participants. Whether it will turn out the same way, however, is up in the stars, but real investors are already on board.


Author

Nico Popp

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.

About the author



Conflict of interest & risk note

In accordance with §34b WpHG we would like to point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH may hold long or short positions in the aforementioned companies and that there may therefore be a conflict of interest. Apaton Finance GmbH may have a paid contractual relationship with the company, which is reported on in the context of the Apaton Finance GmbH Internet offer as well as in the social media, on partner sites or in e-mail messages. Further details can be found in our Conflict of Interest & Risk Disclosure.


Related comments:

22. September 2021 | 14:05 CET | by André Will-Laudien

NEL, dynaCERT, Plug Power, FuelCell Energy - Hydrogen, the flagpole is broken!

  • Hydrogen

Today, what a hype, one would say. Those who held their nerve in January and let reality prevail are not the ones who are surprised at the outcome today. Hydrogen was the stuff of dreams for a few weeks, but the barrel foamed over properly. After rises of up to 2500%, almost all H2 stocks went into the cellar. And how dynamic it was! In just 6 months, hydrogen stocks have lost up to 85% again. One wonders: can there be a second wave? The framework parameters are suitable, as both the EU and Joe Biden have agreed on more hydrogen within the climate targets. The only important thing is the exact design of the subsidies because it will probably not be possible without government orders!

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17. September 2021 | 13:43 CET | by Nico Popp

NEL, dynaCERT, Volkswagen: Where hydrogen has not yet been written off

  • Hydrogen

Will hydrogen become a climate saver in homes? Or will it revolutionize the propulsion technology of ships and trucks? Even if hydrogen has lost some of its fantasy in recent months, the energy carrier is still on the agenda of many inventors and engineers. We introduce three companies that are - sometimes more and sometimes less - involved with hydrogen.

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15. September 2021 | 14:23 CET | by André Will-Laudien

Nel ASA, Enapter, Plug Power, FuelCell Energy - It is time to go all out!

  • Hydrogen

Hydrogen is not only a climate-friendly means of propulsion for automobiles and heavy-duty transport. Large industries such as chemicals and steel can use hydrogen technology to reduce their consumption of natural gas. There are costs involved when converting to hydrogen, most of which are only feasible with political support. The German government's national hydrogen strategy fits in well here. But medium-sized industries, especially energy-intensive sectors, could also become much more environmentally friendly with hydrogen-based technologies. Which stocks are well-positioned here?

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