November 15th, 2022 | 13:30 CET
This hydrogen news moves the share prices today: dynaCERT, Morphosys, Varta
When news moves prices, chart analyses and analysts' assessments are invalidated in one fell swoop. Today, momentum is building for the hydrogen stock dynaCERT. The reason: The Company, together with its new distribution partner, has announced deliveries to renowned mining groups. Among them are Vale, Nexa Resources and Antamina, one of the ten largest mining companies in the world. Is this a breakthrough for HydraGEN™ technology? We shed light on the exciting situation surrounding dynaCERT and also use the examples of MorphoSys and Varta to explain how investors can react when everything suddenly changes.
time to read: 3 minutes
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Author:
Nico Popp
ISIN:
DYNACERT INC. | CA26780A1084 , VARTA AG O.N. | DE000A0TGJ55 , MORPHOSYS AG O.N. | DE0006632003
Table of contents:
Author
Nico Popp
At home in Southern Germany, the passionate stock exchange expert has been accompanying the capital markets for about twenty years. With a soft spot for smaller companies, he is constantly on the lookout for exciting investment stories.
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dynaCERT with sales breakthrough
dynaCERT's HydraGEN™ technology is the Canadian company's core product: over CAD 60 million has been invested in HydraGEN™. Now it seems that the Company may finally reap the rewards of its efforts. Together with trading partner H2 Tek LP, the Company has succeeded in equipping several mining companies with HydraGEN™ systems, including the HG1, HG2 and HG6C systems. They are used either in trucks, large overburden transporters or diesel generators and help companies reduce their environmental footprint. The list of companies that have purchased between one and ten systems each reads extremely prominently: Vale is an international mining company with a focus on nickel, Nexa Resources is synonymous with the production of zinc, Codelco mines copper in Chile, and Arauco is believed to be the first forestry company in the world to certify its carbon neutrality. Other customers in the recently disclosed deal include Peru's largest producer of copper concentrate, Antamina , and Sigma Alimentos, a food packaging manufacturer from Mexico.
As reported by dynaCERT, the HydraGEN™ HG4C and HG6C variants in particular have received a lot of input from potential mining customers over the past two years. "The HG4C and HG6C systems were developed to meet increasing demand as well as demand for improved fuel efficiency along with significant reductions in greenhouse gas emissions from resource companies and to obtain future emissions allowances in the mining, forestry, and oil and gas industries, among others," according to the dynaCERT announcement. The latest announcement gives dynaCERT a foot in the door with several major mining companies at once. "Our products help users operate sustainably and contribute to the reduction of greenhouse gas emissions on a global scale. H2 Tek customers are to be commended for their foresight and commitment to making a corresponding contribution to a greener planet by reducing their emissions," commented Ed Cordeiro, director of sales at dynaCERT, on the deal.
When business relationships with mining giants meet an oversold stock
The stock of dynaCERT is market-wise in a promising starting position. Over the past few months, more and more investors had lost confidence in the share. With the delivery of HydraGEN™ units to several world-class companies at once, dynaCERT is proving many things: the technology is in demand in the target group, and concrete use cases exist. The Company announcement can also be considered a successful litmus test for the sales partnership with H2 Tek. The share has lost around 54% over the past three years; last year alone, it fell by more than 20%. If further steps towards market maturity follow, share prices at the current level should soon be history!
Morphosys? To be forgotten!
For the share of the biotech company Morphosys, prices from last week may already feel as if they were set in a different time. Why? Morphosys, along with partner Roche, reported weak clinical results for its Alzheimer's drug Gantenerumab. Although the drug was able to curb the loss of memory, for example, the results were not statistically significant. In other words, efficacy could not be proven. An approval of the once hopeful drug is becoming a distant prospect. Investors should deal constructively with the new situation and put last week's price level out of their minds. A technical recovery is likely to make up for half of the crash at most - and that only temporarily. Morphosys now needs to get back to basics. The share has lost its fantasy. Hoping and waiting are by no means advisable for investors.
Varta: Consolidation completed, but...
A new era also dawned on battery manufacturer Varta a few months ago. A profit warning, a change in the top management and the sluggish development of the e-car business beat the price down.
The share is now trading at its low for the year. Recently, Varta announced new forecasts for the current and the coming fiscal year , which can be subsumed under the heading "healthy shrinkage". The share price is not affected by the news. That is because the value has already lost significantly. If Varta succeeds in developing imagination beyond the new guidance, the share price may also rebound.
That there are operational delays is nothing new, especially with future technology, best examples are Varta and also dynaCERT. The latter company seems to be on the verge of a breakthrough, at least in operational terms: It supplies several renowned mining companies and seems to be finally (sustainably) getting its horsepower on the road. At Varta, such a success story is still pending. At Morphosys, the first thing to do is to consolidate the operating business and the share. **Of all three stocks, dynaCERT is by far the most exciting!
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