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May 17th, 2022 | 12:25 CEST

Plug Power, First Hydrogen, Rheinmetall - On the verge of a breakthrough

  • Hydrogen
  • GreenTech
Photo credits: Plug Power Inc.

According to Western politicians, the accelerated expansion of renewable energies should end the dependency on Russia sooner rather than later. The oil and gas of the "aggressor" are to be replaced by wind and sun. With hydrogen and the associated fuel cell technology, the transformation from fossil fuels to alternative drives is likely to take place, especially in the transportation sector. While market leader Plug Power is still very ambitiously valued despite a major correction, a young company with its best-of strategy is about to reach an important milestone.

time to read: 3 minutes | Author: Carsten Mainitz
ISIN: PLUG POWER INC. DL-_01 | US72919P2020 , First Hydrogen Corp. | CA32057N1042 , RHEINMETALL AG | DE0007030009

Table of contents:

    Plug Power - The overpriced market leader

    Not only once, a detailed report warned of the high valuation and the risk of a major setback. At that time, the paper stood at around USD 23; currently, it is around USD 10 less. The dangers of a further landslide to the striking resistance area in the EUR 8.00 range are still intact. One reason for the continuing downward pressure was the disappointing quarterly figures for the first quarter of the current year.

    Expectations were clearly missed in terms of both revenues and losses. CEO Andy Marsh announced a loss per share of USD 0.27, while analysts had expected a loss of only USD -0.156 per share. Revenue for the past quarter was valued at USD 140.8 million, up 95.66% from the same quarter last year, when it was USD 72.0 million. However, experts expected an even greater increase to USD 144.8 million. Considering the continued uncertainty of the overall market and the overvaluation mentioned above, Plug Power is, at best, a watch position in the near term.

    First Hydrogen - Facing important milestone

    With a market capitalization of EUR 106.70 million, First Hydrogen is still far from a similar overvaluation. However, the gap with the market leader could be closed somewhat soon. Chairman Nicholas Wrigley will provide further details at the 3rd International Investment Forum IIF on May 19, 2022. Registration to the virtual event is free of charge.

    First Hydrogen is a new player in the light-duty vehicle sector using fuel cell technology. The Canadians aim to become the leading developer and manufacturer of zero-emission, long-range hydrogen-powered commercial vehicles in the UK, EU and North America, combining the best technologies. The collaboration between First Hydrogen Corp's wholly-owned subsidiary, First Hydrogen Limited UK, and Ballard Power and AVL Powertrain UK was sealed back in the second quarter of 2021. Two utility vans, for which the MAN eTGE is intended as a donor vehicle, will be delivered as prototypes as early as the third quarter of the current year.

    In an update, it has now been announced that operational testing of the two MAN-based light-duty fuel cell utility vehicles can begin as early as next month. Given the interest already expressed, it is believed that these trials will be conducted with a significant number of fleet operators and buyers. These trials will be used to drive product development and generate customer engagement and partnerships around First Hydrogen Automotive's future fleets of light-duty vehicles.

    A few weeks ago, the Company completed an oversubscribed private placement that raised gross proceeds of CAD 6.06 million for the Company. As a result, First Hydrogen is well funded for the next few months until the scheduled delivery of the utility vans. After a share price setback in the wake of the weak overall market, the Company appears attractive at a low level.

    Rheinmetall - Firing from all guns

    Since Russia's invasion of Ukraine, defense stocks are once again all the rage. As a result of the rearmament of the various NATO countries, Germany's Rheinmetall is one of the beneficiaries and has more than doubled in value in just a few weeks. In addition to the German armed forces, countless partner countries are placing orders with the Düsseldorf-based Company, whose order books are growing into new dimensions. Even at Rheinmetall, although no investor wants to hear this at the moment, the risks have been pointed out in a report.

    On an operational level, the Düsseldorfers are now making common cause with 4iG and HM EI to set up a joint venture in Hungary to digitize the armed forces. In the process, the Düsseldorf-based company is to hold a majority stake of 51%, according to a press release. It added that a preliminary agreement on the establishment of a joint venture had been signed. The Company is to develop digital solutions for soldier systems in the field of mechanized infantry as well as flight and land simulation systems for training.

    Green hydrogen will take a dominant position in the coming years. In this context, the market leader Plug Power is well positioned, but its valuation is currently too high. Similarly, this is likely to be the case for defense contractor Rheinmetall. In contrast, First Hydrogen appears more attractive again after the correction.

    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.

    For this reason, there is a concrete conflict of interest.

    The above information on existing conflicts of interest applies to all types and forms of publication used by Apaton Finance GmbH for publications on companies.

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    Der Autor

    Carsten Mainitz

    The native Rhineland-Palatinate has been a passionate market participant for more than 25 years. After studying business administration in Mannheim, he worked as a journalist, in equity sales and many years in equity research.

    About the author

    Related comments:

    Commented by Fabian Lorenz on June 19th, 2024 | 07:00 CEST

    Insider alert at Rheinmetall and Thyssenkrupp Nucera! Is First Hydrogen better than Nel?

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    Insiders are taking action after the Rheinmetall share slipped below the EUR 500 mark in the past few days. Following share purchases last week, more board members ordered shares at the start of this week. And there is also positive news on the operational side. There is also an insider alert at Thyssekrupp Nucera. Can the German hydrogen share stop the downward trend? And should First Hydrogen be preferred over Nel? There are good reasons for this. The Canadians' hydrogen commercial vehicle has now also impressed Amazon in practical tests. The news has gone under the radar in the current negative industry environment. This presents a buying opportunity, as EUR 500 million in annual revenue potential is offset by a EUR 30 million market capitalization.


    Commented by Armin Schulz on June 17th, 2024 | 06:30 CEST

    BioNTech, dynaCERT, Plug Power - A single piece of news can change everything

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    Share prices are characterized by their high volatility and can undergo significant changes in a short space of time. Often, just one piece of company news can completely change investor confidence. Shares that were previously under selling pressure and were avoided can suddenly become very popular and experience considerable price increases. Examples include Lufthansa, whose share price rose significantly with the end of the COVID-19 pandemic. Market sentiment can turn quickly when negative factors disappear. A single piece of positive company news can prompt investors to become more involved again, significantly increasing demand and, consequently, the share price. We have identified three potential turnaround candidates.


    Commented by Fabian Lorenz on June 12th, 2024 | 07:00 CEST

    Shock at Plug Power! Thyssenkrupp Nucera and Altech Advanced Materials with up to 100% upside potential!

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    Alarm at Plug Power. After the price jump in May, the share has gone into reverse again and lost 10% of its value in just a few days. Financing worth billions for the struggling hydrogen pioneer is uncertain, bringing the Company's potential insolvency back into the focus of investors. German hydrogen hopeful Thyssenkrupp Nucera received positive analyst comments. Could the share perhaps even double in value? And what is Altech Advanced Materials doing? The shares of the German battery hopeful have bottomed out and may offer an entry opportunity. The market potential for Altech is huge.