January 12th, 2021 | 10:18 CET
Osino Resources, FuelCell, Nikola: Things are moving fast!
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"[...] Our projects are at the initial, high reward exploration stage. [...]" Humphrey Hale, CEO, Managing Geologist, Carnavale Resources Ltd.
Born in Munich, he first studied economics and graduated in business administration at the Ludwig-Maximilians-University in 1995. As he was involved with the stock market at a very early stage, he now has more than 30 years of experience in the capital markets.
Osino Resources - Take advantage of the gold correction
The last 2 weeks were also fast for gold. Within 24 hours, the precious metal corrected together with silver and platinum by 6%. Overall, it went in the first days of January from USD 1,959 down to USD 1,833. For its little brother silver, the correction was like a debacle; the spot price fell from USD 27.9 to USD 24.4, which is 13%. Now the metals are in calm waters and the impacts on the resources are correcting again.
At Osino Resources, there were a few incentive options from the current option program for executives at the turn of the year. The subscription price is CAD 1.25 and the exercise period runs for 5 years. Advantages of such a program are the automated financing options if certain price regions are exceeded. Osino then does not have to ask for new money for exploration but receives funds from the insiders' exercise.
Operationally, the Canadians are doing very well in Namibia. Osino's exclusive exploration licenses portfolio is located within the prospective Damara mineral belt, near the producing Navachab and Otjikoto gold mines, covering a total area of about 7,000 square kilometers. Drilling is expected to be completed in 2021, and the deposit and additional prospecting rights are already valued at CAD 150 million. The gold investment community expects much more here. In the next upward move in gold, the technical resistance at CAD 1.60 should be resolved. We recommend entering the current correction phase at prices around CAD 1.35.
FuelCell Energy - Hydrogen remains in the hype
The FuelCell share recently rose like a rocket. In sympathy with NEL, PlugPower and Ballard Power, things really got going since November 2020 at a price of USD 2.40. In less than two months, the stock gained a full 450% and now it remains at the level reached. The share price has already survived two short attacks, and the lows since the beginning of the year are around USD 11.50. How far has the FuelCell stock come operationally?
FuelCell Energy is a fuel cell energy development company. It develops, manufactures, operates and maintains direct fuel cell power plants (a type of molten carbonate fuel cell) that run on natural gas and biogas. Its power plants are not called "hydrogen fuel cells" because their feedstock is not pure hydrogen and the byproducts of power generation include carbon dioxide. One of the largest publicly traded fuel cell manufacturers in the US, the Company operates more than 50 plants worldwide. Its customer base consists primarily of utilities, municipalities and universities, in addition to industrial customers.
Sales in 2020 will be around USD 70 million. The Company is not yet making a profit, with losses just below sales. 6 analysts see growth at a plus of 73% in the current year. With a USD 5.2 billion capitalization, the P/E is about 80, so investors are probably already looking ahead to 2030 when perhaps 30% of the world's mobility will be handled by fuel cells. An absurd valuation!
Nikola Corp - Legendary developments
Of all hydrogen stocks, Nikola has had the most eventful start on Wall Street. The starting point was a contrived video production on alleged hydrogen-powered trucks. Then, in early September 2020, short-seller Hindenburg Research published an analysis accusing Nikola and its management of lying and fraud. Among other things, the Company had no working prototypes to show other than vehicle concepts. Statements by Nikola on the progress of development and claims regarding large photovoltaic plants and own natural gas wells owned by the Company are challenged, among other things, with reference to insiders.
The shares lost 30% of their value at the time. Nikola Motor Company's official response to the allegations provided only a slight recovery in the share price. Among other things, the Company stated that it had never claimed that the Nikola One in the cited video had moved under its own power. Several allegations were not refuted and described as "not relevant."
Nikola now comes with fresh news about its products. They have reportedly unveiled several battery-electric Tre trucks in Arizona for commissioning. That is a positive sign, but not a reason for investors to get active again now. A potentially supportive Biden administration could be significant for Nikola, as Biden wants to expand technical infrastructure for H2 refueling.
Nikola's stock has been able to stabilize at around USD 17, but it was already trading at USD 45. With a market capitalization of USD 6.8 billion, investors should be aware of the existing risk of a mega crash in the event of further false reports.
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