SMA Solar shocks! Nel with partnerships! Kraken Energy shares could benefit from billionaire Bill Gates!

Kraken Energy: Bill Gates needs uranium

Worldwide, nuclear energy is set to be a climate-friendly source for the energy mix of the future. China, for example, is also investing massively in renewable energies such as wind and solar, but also in numerous new nuclear reactors. The next generation of nuclear power plants is to be built in the US. In addition to relatively small models, cost-effective and efficient ones are also planned. Bill Gates is also involved. The billionaire and Microsoft founder established the Company TerraPower a few years ago and has now presented plans for the construction of a modern nuclear power plant. It is to be built in the US state of Wyoming and will use sodium instead of water for cooling, among other things. It will be connected to the grid by 2030, but until then, where the uranium fuel will come from still needs to be clarified. Russia has been explicitly ruled out as a supplier. Instead, the plan is to rely on deposits in the US and Canada in addition to South Africa and the UK. And this is where Kraken Energy comes into play.

The Company is currently developing four high-grade uranium projects in the US. These properties are located in the US states of Nevada and Utah. Three of these projects have previously produced uranium, and with new technology and higher prices, their revival is now worthwhile.

The Apex project, in particular, is currently the focus of the Company and is making positive headlines. Apex was the largest uranium mine in Nevada in the past and is now being revitalized by Kraken. Drilling is due to commence in August, and this should boost the stock. Strong radon and high magnetic anomalies have already been detected in the section. According to the Company, these correlate well with the known high-grade, near-surface uranium mineralization.

The market environment for uranium production in the US could hardly be better and has a very prominent advocate in Bill Gates. Nevertheless, the Kraken share is trading at EUR 0.07, significantly below its annual high of EUR 0.18. This is due to an ongoing capital measure, which offers investors an exciting entry opportunity.

Nel relies on partners such as General Motors and Reliance

Nel shares roughly doubled between April and May. But this was likely just an interim high. The hydrogen specialist's shares have lost almost 30% in the past four weeks. This means that the hoped-for relief for the share due to the spin-off of the subsidiary Cavendish Hydrogen has failed to materialize. Cavendish Hydrogen has been listed on the stock exchange for a few days now and is experiencing a rollercoaster ride. After rising to EUR 3.30, it fell back to EUR 2. Yesterday, the Cavendish share then rose again by over 20%. The Company will focus on the development of hydrogen refueling systems for heavy commercial vehicles.

And this is what the new Nel looks like: The Company employs 450 people in Norway and the US and will focus on developing the industry's most energy-efficient and reliable electrolysers on a large scale. In addition to further developing and improving its existing PEM and atmospheric-alkaline electrolysers, Nel is investing heavily in the next generation of pressure-based and PEM technologies. The Company is working with General Motors on the development of next-generation PEM electrolysers. Nel has also secured funding from the US Department of Energy to further develop its AEM electrolyser technology.

Then, there is the collaboration with India's largest private company, Reliance Industries, which will give Nel access to a fast-growing market and meet Reliance's global demand for electrolysers. Nel has also partnered with a handful of EPC (Engineering Procurement and Construction) companies to offer turnkey 100 MW modules. These are due to come onto the market shortly.

SMA: Price target more than halved after profit warning

Investors have not been happy with the SMA Solar share in recent months. Despite the global boom in photovoltaic systems, almost all manufacturers are in crisis or are barely earning any money. The German inverter supplier SMA Solar has also surprised with a reduction in its forecast for the year. The reason for the adjustment to the forecast is, in addition to a persistently volatile market, the delayed increase in incoming orders due to the continuing high inventory levels at distributors and installers. In addition, there is new uncertainty in the market due to the outcome of the European elections and the upcoming elections in the US on November 5.

After a nearly 50% drop in the share price within just four weeks, analysts remain skeptical. Although the price targets are often well above the current share price of around EUR 28, experts are still not recommending a "Buy". Deutsche Bank Research recently commented and confirmed its "Hold" rating. The current market development remains challenging for the inverter manufacturer in the short term. They are, therefore, more cautious in the short term. Nevertheless, the price target remains at EUR 40.

The analysts at DZ Bank were much more disappointed. After the SMA management had shown confidence in the first quarter, the significant profit warning came as a surprise, visibly damaging investor confidence. The analysts also reduced their expectations for the current and upcoming year. The rating was adjusted from "Buy" to "Hold". The analysts have more than halved the price target for the SMA share from EUR 66 to EUR 30.

Despite the boom in renewable energies, shares in this segment are not budging. There is no trigger in sight for a rapid recovery at Nel and SMA Solar. The situation is different for Kraken Energy. Once the capital measure is complete, it could quickly head towards the old high for the year.