Close menu




December 28th, 2021 | 07:10 CET

Upcoming hydrogen and cannabis boom - Nel ASA, Ayurcann, Canopy Growth

  • Cannabis
Photo credits: pixabay.com

These two completely different sectors have one thing in common. After both cannabis stocks and hydrogen sector companies multiplied in the past, a significant correction set in during the stock market year soon ending. This correction is likely to continue into the new year 2022. In the long term, however, there are outstanding opportunities both for cannabis, through legalization in various European countries, and for hydrogen, urgently needed for the energy transition. It is time to position yourself.

time to read: 3 minutes | Author: Stefan Feulner
ISIN: NEL ASA NK-_20 | NO0010081235 , AYURCANN HOLDINGS CORP | CA05476A1012 , CANOPY GROWTH | CA1380351009

Table of contents:


    Canopy Growth - Analysts disappointed

    During the recent bull market, one of the standout stocks was the Canadian medical cannabis leader Canopy Growth. With a stock market value of over USD 20 billion at its peak, the Company was one of the most highly capitalized in the sector. Since then, however, the stock price has lost around 80% to USD 9.72. From a chart-technical side still, no all-clear can be given. Various analysts are only partially enthusiastic about the former stock market star.

    Thus Bank of America downgraded the Company from Smith Falls in Ontario from "neutral" to "underperform". The analysts also lowered the price target from CAD 19 to currently CAD 10. The downgrade comes despite the long-term prospects in the global cannabis industry, the analysts argue, pointing to possible federal legalization in the US and changing attitudes towards cannabis use. In addition to mixed performance on KPIs, Canopy Growth is struggling with a changing Canadian market "with new entrants capturing market share and changing consumer tastes, weak industry growth despite new store openings, and limited profitability visibility," the analysts write.

    Earlier, experts at Piper Sandler downgraded the securities from "neutral" to "underweight" and lowered the price target from CAD 11 to currently CAD 7. As a reason, the analysts stated, among other things, that Canopy is losing share in the Canadian market and that measured retail sales in the USA have fallen by around 30% since August.

    Ayurcann - Feared by established players

    One of these new entrants to the market that is striking fear into the hearts of established competitors is the extraction company Ayurcann Holdings - like Canopy Growth, also based in Ontario in Canada, and specializing in the processing of cannabis and hemp to produce oils and various derivatives. With a market capitalization of EUR 15.01 million, Ayurcann is still in the early stages of its development, but its growth is enormous.

    The third consecutive quarter of positive operating results, third-quarter figures confirm the upward trend. Ayurcann reported net sales of CAD 1.9 million for the three months ended Sept. 30, 2021, compared with CAD 0.8 million for the three months ended Sept. 30, 2020 - an increase of 137% YOY. Operating income was CAD 931,000, up more than six-fold from the same period last year, and gross margin was a substantial 49%.

    The Canadians, who handle production on a white label basis for customers worldwide, such as Green Bee, Her Highness from the US and Innocan Pharma from Israel, currently offer 40 products ranging from creams to vape pens. At the 2021 Grow Up Awards Gala in Niagara Falls, Ayurcann recently received the Extraction Facility of the Year award and Contract Processing Facility of the Year.

    The facility was recently expanded, increasing extraction capacity to up to 300,000 kg of input biomass and 2 to 3 million cannabis 2.0 and 3.0 products filled and packaged.

    Nel ASA - Two in one stroke

    The hydrogen sector has also been stuck in a deep correction this year. Norwegian market leader Nel ASA, which specializes in solutions for hydrogen production from electrical energy and its storage and distribution, lost more than 50% of its stock market value since its highs. Currently, the Scandinavians are struggling to find a bottom. After a successful test of the support at EUR 1.40, the share price went up again due to positive news. If the resistance at EUR 1.60 is broken, there should be further upside potential to EUR 1.80 initially.

    Shortly before Christmas Eve, the Company announced two orders. Firstly, an order from a new customer in Europe with a volume of around EUR 3 million to produce an alkaline electrolysis system was announced. Earlier, the subsidiary Nel Hydrogen Fueling announced that an undisclosed customer had placed an order to produce several hydrogen modules for a total value of about USD 6 million for the years 2022 and 2023.


    Both hydrogen and cannabis stocks are still stuck in correction. However, the growth lights are green for both sectors going forward. While Canopy Growth is showing weakness, Ayurcann is fully on track for growth. Nel ASA is still ambitiously valued.


    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 in the future hold shares or other financial instruments of the mentioned companies or will bet on rising or falling on rising or falling prices and therefore a conflict of interest may arise in the future. conflict of interest may arise in the future. The Relevant Persons reserve the shares or other financial instruments of the company at any time (hereinafter referred to as the company at any time (hereinafter referred to as a "Transaction"). "Transaction"). Transactions may under certain circumstances influence the respective price of the shares or other financial instruments of the of the Company.

    Furthermore, Apaton Finance GmbH reserves the right to enter into future relationships with the company or with third parties in relation to reports on the company. with regard to reports on the company, which are published within the scope of the Apaton Finance GmbH as well as in the social media, on partner sites or in e-mails, on partner sites or in e-mails. The above references to existing conflicts of interest apply apply to all types and forms of publication used by Apaton Finance GmbH uses for publications on companies.

    Risk notice

    Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and etc. on news.financial. These contents serve information for readers and does not constitute a call to action or recommendations, neither explicitly nor implicitly. implicitly, they are to be understood as an assurance of possible price be understood. The contents do not replace individual professional investment advice and do not constitute an offer to sell the share(s) offer to sell the share(s) or other financial instrument(s) in question, nor is it an nor an invitation to buy or sell such.

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

    The acquisition of financial instruments entails high risks that can lead to the total loss of the capital invested. The information published by Apaton Finance GmbH and its authors are based on careful research on careful research, nevertheless no liability for financial losses financial losses or a content guarantee for topicality, correctness, adequacy and completeness of the contents offered here. contents offered 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 Carsten Mainitz on February 4th, 2022 | 12:22 CET

    Novavax, Cardiol, MorphoSys - Here's the second wave of Corona vaccine plays!

    • Cannabis

    The number of new Corona infections reported to the Robert Koch Institute (RKI) within one day has reached an all-time high. 236,120 additional cases were recorded, bringing the number of people in Germany who were confirmed to be infected with Sars-CoV-2 to 10.4 million. However, the number of unreported cases is significantly higher. Vaccine manufacturers from the early days have been able to clear the table in recent months, and now new companies such as Novavax and Valneva are entering the scene. But not all innovative approaches to fighting Corona are on the radar of investors. These are perfect conditions for a second share price wave.

    Read

    Commented by Carsten Mainitz on January 18th, 2022 | 13:07 CET

    Ayurcann, Novavax, Covestro - The stragglers are coming!

    • Cannabis

    Humanity continues to find itself in the clutches of the Corona pandemic, the infection figures are rising, and the demand from politicians for mandatory vaccination is becoming louder and louder. While BioNTech and Pfizer vaccines and Moderna have dominated to date, new vaccine manufacturers are entering the market in the next wave. The situation is similar in the cannabis industry. After a boom about 3 years ago, the market leaders have since lost up to 80% of their value. Legalization and the rise of Cannabis 3.0. will pave the way for new companies.

    Read

    Commented by Stefan Feulner on January 12th, 2022 | 12:54 CET

    Tilray, Ayurcann, Aurora Cannabis - When will the boom 2.0 come?

    • Cannabis

    About five years ago, the boom of cannabis stocks started. Companies like Aurora Cannabis, Canopy Growth and Tilray were able to multiply within a few months. However, the boom was followed by a quick end on the stock market. With corrections of 90% in some cases, the exaggerations were harshly corrected. However, the cannabis market is still in a strong growth phase. The legalization in many countries and the cannabis 3.0 wave promise the companies enormous growth leaps in the next few years. Thus, the steep rise seen at the time could be repeated, at least to some extent.

    Read