May 19th, 2022 | 10:52 CEST
Quick percentages? We have the shares: Plug Power, Erin Ventures, Varta
Table of contents:
Plug Power: This order tops everything
On the surface, the mood around Plug Power is rather alarming. The share price has been falling for weeks. Even before that, things were not looking good for the entire industry. Plug Power is a pioneer in hydrogen and is perfectly positioned in this future market. The Company recently secured a major order from H2 Energy for an electrolyzer. According to the Company, this is the largest electrolyzer order to date, with a volume of one gigawatt.
In combination with offshore wind energy, 100,000 tons of green hydrogen are to be produced each year. Hydrogen has gained additional momentum since the outbreak of the war in Ukraine. In addition to its role as a potential fuel for trucks, heavy equipment or even ships, hydrogen could also replace gas. But how is Plug Power's stock doing? It remains close to the 52-week low. Only above EUR 20 does the share price slowly start to pick up again. To speculate on a rebound, traders are currently already too late. The volatility is too great to be able to get in now with a clear conscience.
Erin Ventures: EUR 7 million market capitalization makes you want more
The Erin Ventures share price has roughly quintupled in recent months. At the same time, the share price is barely breaking even. For gamblers betting on a comeback, these are not bad starting conditions. Even dusting off limits could make sense - the danger that the price runs away in the following days is small. Already in the medium term, however, things look much more positive. Erin Ventures operates the Piskanja boron project in Serbia. They recently published the first details of a preliminary study on the project's feasibility.
Boron has unique properties: At room temperature, it hardly conducts electricity, but at rising temperatures, it conducts even more. It is used in armor or bulletproof vests, and it also plays a role as a fertilizer or in the chip industry. The Piskanja Bor project has an indicated resource of 7.8 million tonnes (31% B2O3) and an inferred resource of 3.4 million tonnes at 28.6% B2O3. As part of the new feasibility study for the project, the Company plans to update the resource estimate to incorporate new findings. "This refinement of the deposit modeling will also result in improved mine planning modeling that considers the potential for strategic mining of the various boron minerals within the deposit based on market conditions and real customer demand, as well as the planning of surface processing circuits that better match the parameters of the deposit," the Company said in a release. The market has yet to take notice of the development around Erin Ventures. At just under EUR 7 million, the Company is a crystal-clear micro-cap. In addition to its home exchange in Toronto, the stock is only traded in Berlin in Germany.
Varta: Why the air is out here
Varta, on the other hand, is represented on all major trading platforms in Germany. However, this is of little help to the share price at the moment. Most recently, the value even sank to a level below EUR 70. Varta is a specialist in all aspects of batteries and shines with its strong brand. Both wearers of hearing aids and manufacturers of consumer electronics appreciate the Varta quality. With this tailwind, the Company also wanted to roll up the market for e-car batteries. But so far, not that much has happened. After record prices of EUR 165 last late summer, the share started to retreat. The reasons are manifold and probably related to the market's low appetite for risk. It is also expected to be challenging to launch a new business in times of general scarcity. The share is anything but a sure-fire winner.
Currently, many stocks are shaken. So, where to invest? Companies like Plug Power are landing impressive orders, but these were probably already priced in - at least the market is not really revaluing. In the case of Varta, many investors have likely already resigned. The situation is somewhat different for Erin Ventures: Although the share is extremely speculative due to its status as an exploration company and small-cap, success stories here can also provide a revaluation detached from the overall market. Material shortages and competition hardly play a role here. If surprises succeed here, a lot is possible, starting from the valuation level in the single-digit range.
Conflict of interest
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