July 6th, 2023 | 07:55 CEST
TUI, Defence Therapeutics, Plug Power - Who has the potential for a rally?
Table of contents:
"[...] Recovery rates of more than 90% rare earths are another piece of the puzzle on the way to the economic viability of our project. [...]" Craig Taylor, CEO, Defense Metals
TUI - Upswing in May
TUI has been plunged deep into crisis by the Corona Pandemic. It was only possible to maintain operations with state aid. After the last capital increase, which pushed the share to a new all-time low, a final payment of EUR 750 million was made to the Economic Stabilization Fund. The half-year figures on May 10 already gave further hope that the turnaround might have been achieved. These were confirmed by TDA market researchers, who estimate sales in April and May to be significantly higher year-on-year than in 2022. May, in particular, stands out with a 38% increase.
These estimates are in line with TUI's figures, which reported in June that guest numbers were back above the pre-Corona year in some cases. At that time, 90% of the allotments had already been sold. In the meantime, the summer vacations have begun in NRW, and the airport operations are running smoothly. This could encourage still undecided German citizens to decide to travel. The desire to travel in Germany remains high. After the summer season, which could be a success for TUI, the prospects for the winter season also look promising.
People are even booking earlier these days than before the pandemic to secure early booking discounts and thus cushion inflation somewhat. Those who want to bet on the good figures for the summer should do so before the figures are announced. One should nevertheless keep an eye on the Group's debts. Even if the state aid has been repaid, there is still a good EUR 6 billion in debt. The repayment of EUR 2.7 billion of this has been postponed until 2026. The share, which bottomed out at EUR 5.632 at the end of April, can currently be bought for EUR 6.89. If the stock returns to the black, it has further potential in the short term.
Defence Therapeutics - Free advertising on US television
The Canadian biotechnology company Defence Therapeutics has built up an extensive patent portfolio in recent years and positioned itself as an innovative cancer specialist with various marketing options. The Accum™ technology is a versatile platform that has been continuously developed. The Company owns 7 patent families for different fields of application. The recently filed international patent protecting Accum™, in combination with the CRISPR gene tool, has expanded the patent pool. The Accum™ platform is used to deliver drugs such as antibody-drug conjugates (ADC) specifically into affected cells.
The drug AccuTOX™ is capable of causing diseased cells, such as cancer cells, to die. In experiments on mice, lymphomas could be reduced in size, and the survival rate of the animals increased. Also, the property of Accum™ to introduce antigen-presenting cells helps in oncology so that, for example, cancer is better recognized by the T-cells. researchanalyst.com has dedicated an informative article to the different applications. This year, three Defence Therapeutics developments are expected to enter clinical trials - the ARM vaccine, AccuTOX™ and a protein-based cervical cancer vaccine. The Company's versatility should make it an interesting partner for collaborations with large companies. That could be helped by the July 4 announcement that Defence Therapeutics' management and research team will participate in an episode of "Viewpoint with Dennis Quaid."
The format is a popular infotainment program in the US that introduces its viewers to remarkable organizations and provides new perspectives. As the show airs on CNN, Fox News, CNBC and other outlets, it can be assumed to have an audience of millions. This collaboration will bring Defence Therapeutics greater exposure and attention, which will certainly be beneficial for its targeted NASDAQ listing. It may also bring the Company to the attention of new potential partners. The announcement has already caused a small jump in the share price. Currently, the share is available for CAD 3.00. Free advertising on television in connection with good news could well lead to a rally.
Plug Power - Order from Europe
Plug Power has established itself as a leading supplier of GenDrive fuel cells used in forklifts and other material handling equipment. Here, the Company is working with Amazon, for example. But the goal is to become a full-fledged hydrogen ecosystem provider. This includes participation in hydrogen production, storage and delivery, as well as energy distribution. To this end, Plug Power has developed various solutions to deliver and store green hydrogen for customers, including proton exchange membrane electrolysers and hydrogen liquefiers.
The Group is building several hydrogen hubs in the US. As part of this, the Company is currently building four new green hydrogen plants in Georgia, Louisiana, New York and Texas. By 2025, it aims to produce 500 tons of green hydrogen daily. As many states are promoting hydrogen development, Plug Power should also benefit from this. The Company is also active in Europe. There, it recently won a consortium bid to build a 10-megawatt offshore hydrogen production plant, with a grant of USD 21.8 million from the European Commission.
Finland plans to invest USD 6 billion to build three green hydrogen and ammonia plants. This could produce up to 850 tons of green hydrogen per day. However, the financing is still open. The order books are full, but the Company is not yet in the black. As it continues to invest, it could run out of money for the foreseeable future. This might also be the main reason for the share's crash. The low was marked in mid-May at USD 7.39. Currently, one pays USD 10.30 for a share certificate. If the Company succeeds in getting into the black, there are hardly any limits to the growth fantasies.
All three companies have the chance to start a rally. However, the conditions for this are very different. TUI needs a good summer and winter business to return to the profit zone and provide a boost. Defence Therapeutics is starting three clinical trials to confirm the good results from animal trials. If this succeeds, the stock has a lot of potential. Additional catalysts would be a major strategic partner and increased attention from the TV show with Dennis Quaid. Conditions at Plug Power are good; however, there is a threat of running out of money here. The growth opportunities in the hydrogen sector are enormous. Here, one should keep an eye on the next figures.
Conflict of interest
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