Close menu




June 14th, 2022 | 13:35 CEST

The stock markets are on fire! What is next for Nio, First Hydrogen and Nel ASA?

  • Hydrogen
  • greenhydrogen
  • renewableenergies
Photo credits: pixabay.com

It has been brewing for weeks. The mixture of sharply rising inflation rates, market participants' concerns about further interest rate hikes, and uncertainties surrounding the Ukraine war broke the camel's back and sent global stock markets plummeting through the ranks. The losses cut across all sectors. Along with equities and precious metals, cryptocurrencies are losing disproportionately. Due to the emerging economic concerns, the oil price is also losing ground. The partly exaggerated corrections are already calling bargain hunters on the scene again.

time to read: 3 minutes | Author: Stefan Feulner
ISIN: NIO INC.A S.ADR DL-_00025 | US62914V1061 , First Hydrogen Corp. | CA32057N1042 , NEL ASA NK-_20 | NO0010081235

Table of contents:


    Further trouble looms at Nel ASA

    The need for renewable energies is more important than ever after Russia's invasion. Creating independence from Russian oil and gas is currently the goal of Western politicians, no matter the cost. Using "freedom energies" with wind, sun and water, the transformation away from fossil fuels should succeed. Hydrogen and fuel cells play an essential role here. When the subject of hydrogen comes up on the stock exchange, the name of hydrogen specialist Nel ASA inevitably comes to mind. The Norwegians are the European market leader and one of the pioneers in electrolysis technology.

    Thus, Nel ASA was also inevitably one of the stock market stars in 2020. Since the Corona low in March 2020, the stock more than quadrupled from EUR 0.80 to EUR 3.40. Since then, Nel, which had a stock market value of more than EUR 5 billion at its peak, has been on a steep downward trend. An interim low of EUR 1.10 was not reached until May of the current stock market year. A further slide into the penny-stock range was averted for the time being. Thus, the stock rose to the vertical resistance area at EUR 1.48 before a renewed sell-off took place under high volumes. Currently, Nel is trading at EUR 1.19. Again, the title is in danger of marking a new low for the year. The trend-following indicator MACD gave a new sell signal just today, so a slide into the penny range does not seem unlikely this time.

    First Hydrogen shines with relative strength

    In contrast to Nel ASA, First Hydrogen shines with relative strength and put a performance of almost 42% on the stock exchange floor since the beginning of the year. The stock is currently trading at EUR 1.91. At the level of EUR 1.80, there is a striking support area that could serve as a long-term entry level in the event of a setback. The Canadian company, headquartered in Vancouver and London, is a newcomer in the field of hydrogen-powered commercial vehicles. It aims to catch up with conventional suppliers through two agreements with AVL Powertrain and Ballard Power Systems Inc. and its best-of strategy.

    The best-of strategy - the integration of existing technologies and a proven chassis - allows for both considerable cost and time advantages. In addition, the makers of First Hydrogen are manufacturer and technology neutral, so there is ultimate control and flexibility in using available components from preferred global suppliers. In addition to building the utility van, First Hydrogen boasts other assets currently unique in the market. For example, the Canadians plan to offer customers fuel cell-powered zero-emission and fully mobile supercritical CO2 extraction systems, enabling users to deploy the systems in remote locations where power grids are not available, or power supply is unstable.

    First Hydrogen also has an ace up its sleeve through its strategic partnership with FEV Consulting GmbH. In cooperation, prototypes for a customized hydrogen filling station for the hydrogen mobility market are to be designed and built. The Canadians see the development of the hydrogen fueling station as an enhancement to their automotive strategy. First Hydrogen currently has a market cap of EUR 110.90 million, while its French counterpart McPhy Energy is almost three and a half times that at EUR 387.79 million.

    Solid quarterly figures at Nio

    "Despite supply chain issues and vehicle delivery challenges resulting from the recent COVID-19 recovery, we saw robust demand for our products and achieved record order intake in May," said CEO William Bin Li following the announcement of first-quarter figures.

    The higher energy and raw material costs caused the gross margin to slump from 19.5% to 14.6%. On the other hand, record revenues of USD 1.55 billion were a positive, equating to sales of 25,768 units in total. In addition, the net loss fell to USD 200 million. On the stock market, Nio's shares could not hold on to the USD 20 mark due to the weak overall market and slipped below the critical support area at USD 17.60. The next important stop should be the area at EUR 16.


    Due to inflation fears and concerns about further interest rate hikes, the broad market is correcting strongly. Nel ASA is about to become a penny stock, and Nio is testing an important support. First Hydrogen has so far been able to escape the downward pressure.


    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

    Stefan Feulner

    The native Franconian has more than 20 years of stock exchange experience and a broadly diversified network.
    He is passionate about analyzing a wide variety of business models and investigating new trends.

    About the author



    Related comments:

    Commented by Juliane Zielonka on June 30th, 2022 | 11:39 CEST

    Almonty Industries, Plug Power, BASF - Energy becomes the most valuable asset

    • Tungsten
    • renewableenergies

    Europe is at a crossroads: The energy supply crisis is hitting Germany particularly hard due to its dependence on Russian gas. Alternatives must be found as quickly as possible. In Belgium, a hydrogen plant is being built to make one of the largest industrial ports more CO2-neutral - Plug Power is the development sponsor. BASF is already feeling the gas loss and is changing its strategy. Investors are fleeing the stock despite an 8% dividend. And electric top dog South Korea is also building on economic independence. A metal for nuclear energy is of particular value here - and so is Almonty Industries.

    Read

    Commented by Fabian Lorenz on June 29th, 2022 | 12:18 CEST

    Buy or sell? Nel, Zalando, Aspermont under analyst review

    • Commodities
    • Investments
    • Hydrogen
    • Mining

    After the heavy losses of the past months, a countermovement seems to be starting at the moment. Whether this will turn into a real summer rally remains to be seen. Buy or sell is the question. Analysts see a price potential of over 50% for Nel ASA. Even though competition from China and India is increasing. Aspermont also appears attractive at the current price level. The latest quarterly figures were positive, and the positioning of the small-cap in the booming commodities sector is promising. At Zalando, analysts react to the profit warning, and the price targets are significantly reduced. Nevertheless, some advise buying the online fashion retailer, but not everyone.

    Read

    Commented by Carsten Mainitz on June 29th, 2022 | 11:44 CEST

    First Hydrogen, Daimler Truck, Mercedes-Benz - Will the EU Parliament's exit from combustion engines provide the next boost?

    • Hydrogen
    • Electromobility

    A few days ago, the EU Parliament decided to phase out combustion engines in cars and small commercial vehicles by 2035. The approval of the individual member states is still required to adopt the new directive. Although there are currently still disagreements within the German government as to whether Germany should agree to the ban, the directive can be passed with binding effect by a qualified majority even if Germany abstains. What impact would such a ban have?

    Read