February 22nd, 2022 | 12:01 CET
The boss sells at Nel ASA - Plug Power and dynaCERT with news
Growth stocks are having a hard time in the current stock market environment. The Ukraine crisis, rising interest rates and high inflation mean that investors prefer value stocks. Even the long-celebrated beneficiaries of the energy transition have taken a significant hit. However, the long-term positive outlook for the sector has not changed. Today we look at Nel ASA, Plug Power and dynaCERT. At dynaCERT, the correction has been going on for a year now, and management changes can provide new impetus. At Nel, the outgoing CEO is selling shares in a big way, causing renewed investor frustration. Plug Power, on the other hand, shows strength and expands into an exciting area through an acquisition and partnerships.
time to read: 3 minutes
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Author:
Fabian Lorenz
ISIN:
NEL ASA NK-_20 | NO0010081235 , PLUG POWER INC. DL-_01 | US72919P2020 , DYNACERT INC. | CA26780A1084
Table of contents:
"[...] Why should a modular electrolyzer cost more than a motorcycle? [...]" Sebastian-Justus Schmidt, CEO and Founder, Enapter AG
Author
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.
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dynaCERT: When will commercialization succeed?
The correction in dynaCERT began a good year ago. During this time, the share has lost a lot of ground and slipped from over EUR 0.80 to EUR 0.12. In the meantime, the Canadian Company is only valued at around EUR 50 million. Quite attractive for a company that benefits from the topic of CO2 reduction and certification with its technology. However, the breakthrough in commercialization must finally be achieved. Management changes could now provide the impetus for this. In recent months, the COO and two members of the Board of Directors have left the Company. So something is happening. Previously, the Company had certainly made progress, winning new orders and forging partnerships. Among other things, Sofina Foods had ordered an additional 16 HydraGEN units from dynaCERT through its partner KarbonKleen Inc to use its patented technology to improve the efficiency of diesel engines and reduce their emissions. In order to officially measure the CO2 savings and document them for the responsible environmental authority, dynaCERT supplies the matching telematics software HydraLytica at the same time.
The intelligent software HydraLytica records and analyzes the consumption of vehicles. Users can be fleet companies, for example. They can use it to document the CO2 saved, convert it into corresponding certificates and sell them. E-car pioneer Tesla has been demonstrating for years that this is a good way to earn money. Due to the CO2 reduction targets set worldwide, the certificate market is expected to develop into a billion-dollar market. While this offers enormous potential for dynaCERT, the Company must finally deliver.
Plug Power: Reducing costs through the acquisition
While the Plug Power share was still quoted at EUR 39 at the end of November 2021, it is now only EUR 20 - there has been no talk of the all-time high of EUR 60 for a long time. But operationally, the hydrogen specialist continues to step on the gas. As recently announced, the Americans want to expand into the exciting field of hydrogen liquefaction - an exciting technology to facilitate the transport of hydrogen and reduce costs. Therefore, Plug Power is acquiring the Company Joule Processing at a purchase price of USD 30 million, due immediately. The price may increase by another USD 130 million depending on the profit development. The acquisition would seem to bring important technology into the Company, as Plug Power expects its own investments to be reduced by around USD 200 million over the next four years. Joule has a proven cryogenic process technology for the gas processing industry. This technology could be used to liquefy hydrogen, potentially at a 25% lower cost. In addition to this acquisition, Plug Power has agreed to two new partnerships with Atlas Copco and Fives. Together, hydrogen liquefaction plants are to be developed.
Nel ASA: Chief executive disembarks and sells shares
At Nel ASA, there is currently no sign of a spirit of optimism. The Norwegian Company's quarterly figures were initially disappointing. Sales increased by only 8% to EUR 24.5 million. At the same time, the EBITDA loss rose by 75% to EUR 16.6 million. The net loss of EUR 26.6 million was even higher than sales. At least Nel reported a very solid cash position of EUR 269 million. The 43% increase in incoming orders to EUR 41.3 million could not ease the disappointment of the weak operating performance. And now the outgoing CEO is also selling. Jon André Løkke will vacate his post at the end of June 2022. His successor, Håkon Volldal, has already been appointed. In the meantime, it has become known that Løkke has sold one million Nel shares worth around EUR 1.3 million. That was half of his holding of Nel shares. Yesterday, the value lost over 6% and fell to below EUR 1.20.
Growth stocks are struggling at the moment. But companies like Plug Power continue to invest in the future. dynaCERT has already invested in an exciting technology and needs to make a breakthrough in commercialization. At Nel, investors first have to digest the weak quarterly figures and the sales of the outgoing CEO.
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.
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