Close menu




June 26th, 2024 | 07:00 CEST

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

  • Mining
  • Uranium
  • renewableenergies
  • Energy
  • Solar
Photo credits: pixabay.com

While Siemens Energy shares are marching towards a yearly high, driven by a new billion-dollar order from Saudi Arabia, many other energy shares - especially those in the carbon-neutral sector - have been struggling all year. Is now the time to take an anti-cyclical approach to stocks that are at rock bottom? SMA Solar has hit a new 52-week low following its profit warning. What do the analysts say? Nel ASA has not yet succeeded in breaking free with the spin-off of its subsidiary Cavendish Hydrogen. The Norwegians are relying on strong partners with a focused business model. Kraken Energy currently offers an exciting entry opportunity. Billionaire Bill Gates is making headlines with the construction of a new nuclear power plant in the US. Uranium specialist Kraken Energy could also benefit from this.

time to read: 4 minutes | Author: Fabian Lorenz
ISIN: SMA SOLAR TECHNOL.AG | DE000A0DJ6J9 , KRAKEN ENERGY CORP | CA50075X1024 , NEL ASA NK-_20 | NO0010081235

Table of contents:


    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.


    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.

    Risk notice

    Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and the like on news.financial. These contents are exclusively for the information of the readers and do not represent any call to action or recommendations, neither explicitly nor implicitly they are to be understood as an assurance of possible price developments. The contents do not replace individual expert investment advice and do not constitute an offer to sell the discussed share(s) or other financial instruments, nor an invitation to buy or sell such.

    The content is expressly not a financial analysis, but a journalistic or advertising text. Readers or users who make investment decisions or carry out transactions on the basis of the information provided here do so entirely at their own risk. No contractual relationship is established between Apaton Finance GmbH and its readers or the users of its offers, as our information only refers to the company and not to the investment decision of the reader or user.

    The acquisition of financial instruments involves high risks, which can lead to the total loss of the invested capital. The information published by Apaton Finance GmbH and its authors is based on careful research. Nevertheless, no liability is assumed for financial losses or a content-related guarantee for the topicality, correctness, appropriateness and completeness of the content provided here. Please also note our Terms of use.


    Der Autor

    Fabian Lorenz

    For more than twenty years, the Cologne native has been intensively involved with the stock market, both professionally and privately. He is particularly passionate about national and international small and micro caps.

    About the author



    Related comments:

    Commented by Fabian Lorenz on December 10th, 2024 | 07:15 CET

    HIGHFLYER stocks with upside potential: Renk, TUI, Almonty Industries

    • Mining
    • Tungsten
    • Defense
    • Travel

    The current year has seen the beginning of a revaluation of Almonty Industries. The tungsten producer's stock has already gained more than 50%. If analysts have their way, it could gain another 250%. According to analysts, there could still be over 250% upside potential, as the Company is on the verge of a revenue and profit surge with the opening of a mega-mine. The TUI share has finally jumped above the EUR 8 mark. Driven by statements about a strong summer season in 2025, there is room for further growth. At its IPO, Renk was sold as a high-flyer in the defense sector. While the Company has yet to live up to these high expectations, analysts see over 50% price potential.

    Read

    Commented by André Will-Laudien on December 9th, 2024 | 07:15 CET

    DAX 20,400 – Year-end rally underway! 100% opportunities are still lurking at Shell, BP, Saturn Oil + Gas, Nel ASA, and Plug Power

    • Mining
    • Oil
    • renewableenergies
    • Hydrogen
    • Fuelcells

    All EU countries have ramped up their alternative energy production in recent years. In particular, countries like Germany achieved a 65% share of electricity from renewable sources in the first half of 2024, with wind and solar as the main drivers of growth. However, the conflict in Ukraine since 2022 has now jeopardized the achievement of the 2050 targets more than ever because the lack of affordable fossil gas is threatening the transformation of the economy. The rising gas prices of recent weeks have awakened bad memories of 2022 among European energy traders and politicians alike. When the continent was in a rush to end its dependence on Russian gas, prices had already risen by 400%. The energy sector offers great opportunities – timing is of the essence!

    Read

    Commented by Armin Schulz on December 9th, 2024 | 07:00 CET

    Volkswagen, ARI Motors, BYD – Electric vehicles in the fast lane: Time to invest

    • Electromobility
    • renewableenergies

    The automotive industry is undergoing a period of profound upheaval that is shaking established structures. While electric vehicles are breaking new records worldwide, the European and American markets are faltering – a development forcing manufacturers like Volkswagen to make strategic changes. At the same time, Chinese players such as BYD are setting new standards with their dynamism and innovative strength. However, it is about more than just drives: software, networking, and digital sales concepts are revolutionizing the industry. We take a look at three companies that could be worth investing in.

    Read