April 21st, 2023 | 07:20 CEST
Outstanding long-term opportunities - Plug Power, Myriad Uranium, JinkoSolar
Table of contents:
Plug Power with another low blow
As if a loss of around 53% since the beginning of February and reaching a new annual low was not enough for the hydrogen specialist, disappointed shareholders are now free to participate in a class action lawsuit filed with the United States District Court for the District of Delaware. The allegation against the US company is "violations of securities law". The complaint states that the defendant made false or misleading statements or failed to disclose information during the entire class action period between August 9, 2022, and March 1, 2023.
As recently as August 9, 2022, the day the half-year figures were released, the Company was still talking about a booming 2022 financial year. In addition, CEO Andy Marsh once again emphasized that the supply chains were secure. Stocks would be filled so that the high demand in the second half of the year could be met. In October, the first profit warning and signs of problems with the supply chains followed. In November, disappointing third-quarter figures were reported, followed by another sales warning on the occasion of a strategy update at the end of January. Of the previously planned sales, which were supposed to be between USD 900 and 925 million in 2022, only USD 700 million remained when the annual results were finally announced.
Despite the multiple revisions to its figures, Plug Power is still sticking to its 2023 forecasts of USD 1.4 billion in sales and a gross margin of 10%. In addition, revenue growth is expected to be 50% annually over the next few years, reaching the magic mark of USD 20 billion in revenue and a gross margin of 35% in 2030. From a chart perspective, the share continues to be heavily battered. Moreover, we expect another corporate action this year, so the stock does not look lucrative in the long run. You can read a detailed report here.
Myriad Uranium benefits
Germany is shutting down its last nuclear power plants, while the largest Western industrialized countries are increasingly turning to carbon-free nuclear energy. Here, the trend is clearly towards constructing new, state-of-the-art reactors and is being massively subsidized by politicians. New nuclear technology is being promoted as a central part of the country's plans to reduce emissions.
The new listing of Myriad Uranium, which is listed in addition to Toronto in Frankfurt and on the OTCQB Venture Market in the USA and has a market value of CAD 8.54 million, has a clear vision. CEO Thomas Lamb says the Company wants to become "one of the most successful uranium exploration companies in the world." When looking at the properties, this statement sounds ambitious but by no means improbable. The exploration company holds an option on a 100% interest in over 1,800 sq km of uranium exploration licences in the Tim Mersoi Basin in Niger, Africa, the sixth largest uranium producer in the world. The four licences are located near the most significant uranium deposit, Imouraren, the largest in Africa and the second largest globally, with 384 million pounds of equivalent uranium oxides (eU3O8). Myriad Uranium's property is only about 30 km away from Dasa, Africa's highest-grade development-stage deposit. Moreover, both share the same rock structures.
The announcement by France's Orano Group, the world's second-largest uranium producer, to invest more than CAD 115 million in formal in-situ recovery testing at its Imouraren project is equivalent to a major win for Myriad Uranium. The Arlite Fault, which hosts Imouraren and is estimated to control mineralization throughout the Tim Mersoï Basin, extends directly into Myriad's Agebout licence area. There, about 15 km north of Imouraren, crosses part of the important Madaouela fault system, which hosts GoviEx's 100 million pound eU3O8 Madaouela deposit.
Yet the Imouraren North area has not been explored in detail. This is a task the Canadians, who hold an option of 100%, intend to take on later this year. Orano's predecessor Areva had planned an extensive drilling programme of around 65 wells for the area, but this was halted in 2011 due to the Fukushima accident.
JinkoSolar is close to an upward trend
The chart picture for JinkoSolar appears much more promising. The Shanghai-based company is building a vertically integrated value chain for solar energy products ranging from silicon ingots, wafers and cells to solar modules. In addition, JinkoSolar owns two overseas solar energy projects in Mexico and Argentina. Since the March 2020 lows of USD 11.42, the share price has posted a performance of over 680% to peak at USD 90.20 in October 2020.
Since then, the JinkoSolar share has been in a correction and is currently trading at USD 49.29. The USD 43.94 mark is important, as this is the upward trend formed since March 2020, which has already been successfully defended several times. On the upside, a buy signal would be generated at USD 55.91 if the downward trend formed since July 2022 were exceeded. Positive impulses could come from the indicator side, as both the MACD and the RSI have formed positive divergences and are close to a buy signal. On April 28, there could be a groundbreaking decision. The Company will present the first quarter figures for the year 2023.
Despite the extreme decline in the share price, Plug Power still faces additional risks due to the filing of the class action lawsuit. JinkoSolar may test its upward trend. The Orano announcement is an opportunity for Myriad to reach significantly higher levels.
Conflict of interest
Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as "Relevant Persons") may hold shares or other financial instruments of the aforementioned companies in the future or may bet on rising or falling prices and thus a conflict of interest may arise in the future. The Relevant Persons reserve the right to buy or sell shares or other financial instruments of the Company at any time (hereinafter each a "Transaction"). Transactions may, under certain circumstances, influence the respective price of the shares or other financial instruments of the Company.
In addition, Apaton Finance GmbH is active in the context of the preparation and publication of the reporting in paid contractual relationships.
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