December 5th, 2022 | 10:41 CET
Plug Power, dynaCERT, Nel ASA - The tension rises
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"[...] We can convert buses and trucks to be completely climate neutral. In doing so, we take a modular and incremental approach. That means we can work with all current vehicle types and respond to new technology and innovation [...]" Dirk Graszt, CEO, Clean Logistics SE
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dynaCERT - News on Wednesday?
As recently as the end of September, dynaCERT CEO Jim Payne presented the Canadian hydrogen company at the 4th International Investment Forum and ventured a positive outlook concerning major orders in addition to the positive conclusion of Verra's Verified Carbon Standard program, the most widespread greenhouse gas savings crediting program globally, before the end of this calendar year.
Invested and interested investors should highlight this coming Wednesday, December 7, 2022, in the calendar. The experienced company leader will again present to the broad public on the occasion of the 5th IIF - International Investment Forum. The virtual event is free charge.
Since the last event, dynaCERT has booked several orders with large customers. The group secured access to the forestry sector in Canada through the Company Fiorentino Bros. Contracting Ltd. FBC owns more than 100 pieces of heavy equipment and a fleet of over 70 motorized vehicles. In addition, the trading partner H2 Tek LP celebrated significant progress in acquiring major customers from the international mining industry. Internationally renowned companies such as Nexa Resources, Vale S.A., CODELCO, Arauco, Sigma Alimentos and one of the ten largest mining companies in the world, Antamina, were welcomed as new customers.
The Verified Carbon Standard program's positive conclusion is key to the planned closed ecosystem. In addition to accelerating customer acquisition, recurring carbon trading revenues should also impact the announced placement of carbon convertible bonds totaling CAD 10 million. From a chart perspective, investors continue to sit in the waiting position and hope for momentum. The dynaCERT share corrected by about half after a strong increase to CAD 0.33 in August. If positive signals are given by the Company on Wednesday, the consolidation could soon come to an end.
Plug Power - On a thread
Since the publication of disappointing figures for the third quarter, the chart of the market leader in fuel cell technologies has also deteriorated. Although sales increased from USD 143.9 million to USD 188.63 million compared to the same period last year, the loss grew surprisingly from minus USD 106.67 million to minus USD 170.8 million, corresponding to a loss per undiluted share of USD 0.30. The results were even more serious between January 1, 2022, and September 30, 2022, when revenue of USD 480.7 million was offset by a net loss of USD 500.5 million.
Accordingly, the Company reassured after publication that it was not a demand problem. Instead, the reasons for the disappointing figures lie in supply chain problems and postponements of major projects. As such, Plug Power, led by CEO Andy Marsh, will try to take off again in 2023 and increase sales to USD 1.4 billion with improved margins. Analysts at RBC Capital cut the price target from USD 24 to USD 20 but still see Plug Power as a buy candidate.
From a technical point of view, further trouble and a possible slide into the single-digit range would be imminent if the share price were to fall below the low for the year to date at USD 12.70.
Nel ASA - Top pick of the analysts
Weak sales growth and high losses also characterized the quarterly figures of the Norwegian hydrogen specialist Nel ASA. The market capitalization of USD 2.41 billion still seems utopian despite a significant correction. On the other hand, the order backlog is positive. Analyst firm Jefferies confirmed its price target of NOK 19 and sees Nel ASA as the top pick in the European hydrogen sector. According to the experts, the current order backlog makes sales development easy to plan. RBC also sees the share as a buy candidate and assigned a price target of NOK 23.
The Norwegian company's market position was also underpinned by a strategic deal with General Motors, the largest automaker in the US. GM's fuel cell expertise is expected to help Nel scale up. GM will receive unspecified payments for support in development work and the transfer of intellectual property. Should successful product developments occur, GM would also receive royalty payments.
Weak sales growth and increased losses characterized the figures for Plug Power and Nel ASA. Nevertheless, various analyst houses are positive in the long term. The share price of dynaCERT could also experience a positive turnaround if the final approval for emissions trading is announced.
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