March 11th, 2021 | 10:40 CET
Silver Viper, Plug Power, FuelCell Energy - Silver and Hydrogen - Get in or get out?
Table of contents:
"[...] Internally we expect the resource to significantly grow the deeper we mine. [...]" Dennis Karp, Executive Chairman, Manuka Resources
Born in Munich, he first studied economics and graduated in business administration at the Ludwig-Maximilians-University in 1995. As he was involved with the stock market at a very early stage, he now has more than 30 years of experience in the capital markets.
Silver Viper - New drill results are convincing
The silver price remains the plaything of a wide variety of interests. The Reddit community wanted to ignite a short squeeze in silver at the end of the year; this calculation had been made without the central banks. Precious metal prices may not rise at all, as long as there is beautiful paper money. So the rise of silver was brought to an abrupt end at USD 30 and the spot price was sent back to below USD 24.
Silver Viper is a Canadian explorer, currently not yet concerned about the spot prices in silver but about its property in La Virginia. This property is located 220 km northeast of Hermosillo, Mexico. It is a vast exploration area known primarily for its epithermal precious metal mineralization with low sulfidation.
The property and historical exploration database were acquired under option agreements with two different parties. Silver Viper's most recent program included a total of 100 drill holes totaling 27,021 meters. The Company's drilling to date builds on a substantial database of historical work, including 52,635 meters of drill core from 188 diamond drill holes obtained by previous operators between 2010 and 2013. Silver Viper continues to expand this work by exploring the north and south in prospective untested terrain.
Silver Viper shares have shown a good increase from CAD 0.36 to CAD 0.72 following the recent success news and are currently hovering around CAD 0.60. The market capitalization is around CAD 48 million. One should expect more good results from Mexico during the year and if silver picks up, the Silver Viper stock is in.
Plug Power - short squeeze after sell-off
That was a powerful attack on the Plug Power share! After hitting a high of USD 76 as recently as early February, hydrogen stocks, and Plug Power in particular, took a steep dive. Last week the price reached USD 33, a loss of 57% in only 4 weeks. Currently, the price is trying to hold above the USD 40 mark. With a price-to-sales ratio of 100, the attraction of short selling was, of course, huge - now the first sharp correction has occurred. We had prepared you for such a scenario for a long time. The entire sector lost more than EUR 50 billion in market capitalization in just one stock market week, which is equivalent to Bayer AG's value.
The first wave of correction now seems to have been absorbed, so sit back and watch from the sidelines. It could be that the stock market has to work through a second wave of hydrogen euphoria. In the medium term, we see significantly lower prices in this sector.
We should take a closer look at an interesting announcement: SK Group plans to sell part of its stake in Grove Energy Capital, a special purpose vehicle set up to take over Plug Power. Specifically, up to 49% of the stake is to be transferred to financial investors. The value of the stake to be sold is estimated to be more than a trillion won, it kind of feels like someone has gotten it wrong?
FuelCell Energy - Far from making real money
A quick comment on FuelCell Energy. Here the high was USD 29.50 and the correction took us down to USD 11.0 - certainly the strongest sell-off in the hydrogen sector. FuelCell Energy, like all other companies in the sector, is, of course, not making a profit. A market cap of USD 12 billion for an estimated turnover of USD 70 million gives a turnover factor of 170 - rarely seen, should be on the tip of your tongue.
FuelCell Energy will soon have a quarter of a century of research behind it, with no profits. It may take some tinkering, of course, a few years of struggling, but at some point, you have to wonder if the business plan you are aiming for will ever pan out. The Company's latest quarterly results, released last week, underscore that point. The Company lost 8 cents per share, which was double what analysts expected. For the full year 2020, FuelCell generated USD 71 million in revenue, compared to USD 61 million for 2019. That's not the kind of hyper-growth you'd associate with a stock that just jumped 1,800%.
Bottom line: FuelCell stock will inevitably continue to fall because, at some point, the fundamentals will determine the direction, not the money of wild-eyed speculators. We continue to watch and report.
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 in the future hold shares or other financial instruments of the mentioned companies or will bet on rising or falling on rising or falling prices and therefore a conflict of interest may arise in the future. conflict of interest may arise in the future. The Relevant Persons reserve the shares or other financial instruments of the company at any time (hereinafter referred to as the company at any time (hereinafter referred to as a "Transaction"). "Transaction"). Transactions may under certain circumstances influence the respective price of the shares or other financial instruments of the of the Company.
Furthermore, Apaton Finance GmbH reserves the right to enter into future relationships with the company or with third parties in relation to reports on the company. with regard to reports on the company, which are published within the scope of the Apaton Finance GmbH as well as in the social media, on partner sites or in e-mails, on partner sites or in e-mails. The above references to existing conflicts of interest apply apply to all types and forms of publication used by Apaton Finance GmbH uses for publications on companies.
Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and etc. on news.financial. These contents serve information for readers and does not constitute a call to action or recommendations, neither explicitly nor implicitly. implicitly, they are to be understood as an assurance of possible price be understood. The contents do not replace individual professional investment advice and do not constitute an offer to sell the share(s) offer to sell the share(s) or other financial instrument(s) in question, nor is it an nor an invitation to buy or sell such.
The content is expressly not a financial analysis, but rather financial analysis, but rather journalistic or advertising texts. Readers or users who make investment decisions or carry out transactions on the basis decisions or transactions on the basis of the information provided here act completely at their own risk. There is no contractual relationship between between Apaton Finance GmbH and its readers or the users of its offers. users of its offers, as our information only refers to the company and not to the company, but not to the investment decision of the reader or user. or user.