June 24th, 2024 | 11:15 CEST
Plug Power, Carbon Done Right, Evotec - Turnaround after the price slump
After the price surges in recent weeks, there were initial signs of a temporary top formation in the major US indices, including the Dow Jones, S&P 500, and the tech-heavy Nasdaq. It is hardly surprising, given that these indices have been in overbought territory since the upward trend that began in November. Once again, it is crucial for investors to pick the winners of the coming weeks despite a possible correction.
time to read: 3 minutes
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Author:
Stefan Feulner
ISIN:
PLUG POWER INC. DL-_01 | US72919P2020 , CARBON DONE RIGHT DEVELOPMENTS INC | CA14109M1023 , EVOTEC SE INH O.N. | DE0005664809
Table of contents:
Author
Stefan Feulner
The native Franconian has more than 20 years of stock exchange experience and a broadly diversified network.
He is passionate about analyzing a wide variety of business models and investigating new trends.
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Evotec - Parallels to Morphosys
Will the pharmaceutical drug discovery company Evotec also have a happy ending? After the Evotec share has been on a downward spiral since the beginning of the year and lost over 65% to EUR 7.21, there was a glimmer of hope last week. The reasons for a weekly increase of almost 20% were speculation about a takeover of the Hamburg-based company.
The news magazine Bloomberg reported that Evotec had hired advisors to defend itself against a possible takeover attempt. According to insiders who wish to remain anonymous, several interested parties are showing takeover intentions and have brought in advisors to evaluate Evotec's company and its drug pipeline.
However, no concrete offers or negotiations have been initiated to date. Sources familiar with the matter told Bloomberg that it could be months before a concrete takeover offer is made. This is also influenced by the fact that the new CEO, Christian Wojczweski, first wants to gain his own overview of the situation of the ailing drug researcher.
Curiously, at the beginning of the week, a study by the relatively unknown analyst firm Intron Health recommended selling Evotec shares with a target price of EUR 7.
Carbon Done Right Developments - Heading to London
Carbon Done Right Developments is a hot turnaround candidate. According to the Boston Consulting Group, the market in which the Canadian company operates, namely trading in emissions certificates, is set to grow more than eightfold by 2030. The Canadians use venture capital under various agreements with large landowners and governments to restore land and marine systems that are to be protected or restored to fully productive ecosystems.
The innovative pure player uses artificial intelligence and data analysis to verify the accuracy of carbon sequestration from the tree level to the continental level.
The experienced team led by CEO James Tansey, who has access to important target areas thanks to his long-standing relationships in the mining and raw materials sector, operates projects in Ghana, Suriname, Mexico, and Sierra Leone. At the latter, Carbon Rights has received its fourth payout under a pre-purchase agreement with a Fortune 500 company. This project, in particular, could mutate into a real cash cow and has an initial area of 5,000 ha, on which up to 1.9 million tons of validated and verified Verra emission credits can be generated over a period of 30 years. In addition, this is to be successively expanded to 20,000 ha.
The Company, valued at just CAD 5 million, could receive a boost in valuation. It aims to list on the Alternative Investment Market of the London Stock Exchange (AIM) at the end of June, which could generate significantly more investor interest.
Plug Power - Little reaction
In recent years, the community had high hopes for fuel cell pioneer Plug Power. However, these hopes were abruptly dashed with project postponements and full-bodied forecasts that were subsequently missed. Plug Power, led by its dynamic CEO Andy Marsh, is in financial difficulties and is dependent on billions in loans from the US Department of Energy.
For this reason, the share price has been pointing in the same direction for months and, at USD 2.41, is once again at its low for the year of USD 2.26. Another unsuccessful test will likely result in another sell-off for investors, which would result in a move to the support levels from 2018 at USD 2.
The thesis that Plug Power has lost confidence is demonstrated by the fact that the downward trend continued after the announcement of a significant order last week. Plug Power announced an order from a European customer to deliver PEM electrolysis systems with a capacity of 25 megawatts. A total of 5 electrolysers with an output of 5 megawatts each are to be used in one container.
"The selection of Plug's technology for this project is a clear example of our established industry expertise and proven technology", says CEO Andy Marsh. However, whether he can encourage investors to buy again is becoming increasingly unlikely.
After the fall in the share price, the biotech company Evotec was able to make strong gains on the back of takeover rumours. In contrast, Plug Power's announcement of a major order made no impact. Carbon Done Right is making the leap to AIM, which will likely generate increased investor interest.
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