May 20th, 2021 | 08:23 CEST
Varta, PlugPower, FuelCell, Mineworx Technologies - Environmental stocks are booming!
The stock market is showing initial downward reactions. Having trended close to its high of 15,508 points again at the beginning of the week, the DAX saw a sell-off in growth stocks yesterday. Again, hydrogen stocks, e-mobility and especially crypto stocks were targeted by sellers. The crypto collapse of up to 50% was once again fueled by the Chinese government yesterday. The nationwide trading ban declared since 2013 was repeated accordingly. One can well imagine that trader turnover will soon be controlled and sanctioned on the Internet as well. The crypto community reacted in shock to this news.
time to read: 4 minutes
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Author:
André Will-Laudien
ISIN:
DE000A0TGJ55 , US72919P2020 , US35952H6018 , CA6034652041
Table of contents:
Author
André Will-Laudien
Born in Munich, he first studied economics and graduated in business administration at the Ludwig-Maximilians-University in 1995. As he was involved with the stock market at a very early stage, he now has more than 30 years of experience in the capital markets.
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Varta - Further upwards with a good outlook
Varta AG will definitely continue the lithium-ion strategy. There is now a first customer from the automotive sector for the new high-performance round cell V4Drive in the 21700 format. Who it is, of course, remains a secret. In addition, Varta announced that it would also develop other, larger lithium-ion round cells in the future.
Varta increased group sales by 2.9% to EUR 204.3 million in the first quarter of 2021. Adjusted EBITDA increased by almost 16% to EUR 59.9 million, bringing the operating margin to 29%, which we believe is already a major step in the right direction.
All segments continue to contribute to the Company's growth and were able to underpin the good figures. Especially for the second half of the year, Varta now expects an increase in sales and earnings due to new customer orders in the automotive and True Wireless Stereo Headsets (TWS) segments. The latter area will be called "Lithium-Ion Solutions & Microbatteries" in the future.
The Varta share price turned on the heel at EUR 108 and shot up again to EUR 124. The share generates a first technical buy signal above EUR 136. Wait and see.
Plug Power - Poor figures continue to put pressure on the share price
On Monday evening, Plug Power announced its Q1 update after market close; unfortunately, the news was anything but great. Although Plug boasted gross revenue of over USD 70 million, which after all was up more than 60% year-on-year, the numbers fell far short of expectations.
The news is so drastic because losses have increased even more in parallel with sales, to USD 100 million. While management remains optimistic and predicts that revenues will rebound to USD 102 million or more in Q2, the situation remains vague. Still, at least the break-even for Q2 would be assured. However, even the increased Q2 forecast reinforces the view that Plug's gross revenues are not quite getting off the ground.
The revised annual report for 2020 is also available after auditors from KPMG found some irregularities. Analysts took the publication as an opportunity to revise their assessments for the hydrogen stock. The American investment bank Piper Sandler lowers the price target for Plug Power from USD 42 to 32 and continues to rate the share as "Neutral." On the other hand, analysts at Barclays are more pessimistic, maintaining an "underweight" rating on Plug Power shares and reducing the price target from USD 28 to 24. The Plug share price has been able to stabilize above USD 25 since Friday, but there is only a technical buy signal above the USD 36 mark.
FuelCell Energy - In the slipstream of Plug Power
The FuelCell Energy share has been on a real rally for the last 2 days. The value had fallen to the USD 7 border; now, the value rises within the shortest time by 25%. Fundamentally, the figures have not changed. The Company has many projects but still cannot generate a sustainable profit.
At first glance, you might think that Plug's news has nothing to do with FuelCell. Plug is currently both the strongest Company in the fuel cell sector and the clear favorite of investors. Although Plug is still operating unprofitably and burning cash, the Company has more than USD 1.3 billion in cash on hand and a market cap of well over USD 12 billion.
Compare that to FuelCell: also unprofitable and with a manageable market cap of just USD 2.3 billion and less than USD 200 million in cash.
Conclusion: Those who are only trading in hydrogen will indeed find FuelCell the more volatile stock, while those who are a bit more focused on size will get involved in Plug Power once it bottoms out.
Mineworx Technologies - Green technologies for the mining industry
Similar to the hydrogen sector, Mineworx Technologies positions itself in a green industrial niche. As a diversified technology supplier to the mining industry, they cover multiple stages of production with advanced solutions. The growth idea consists of combining environmentally friendly processes within raw material extraction and waste disposal through appropriate catalysts.
Using its patent-pending, environmentally friendly and portable extraction technologies, the Company manages to improve the footprint of a somewhat questionable industry. 80% of the world's palladium (Pd) supply and 50% of platinum (Pt) are used annually in catalysts. It takes about 12.6 million oz of Pd and Pt per year to meet gasoline emissions regulations alone.
And with the latest climate accords in Paris, those regulations are getting even tighter. Another problem facing the industry is approximately 27 million catalytic converters that end up in recycling facilities after vehicles are scrapped. Currently, only less than 30% of the palladium or platinum is recovered in the process. Mineworx is currently the only Company in the world working on clean extraction of palladium and platinum for the new diesel catalysts.
But the catalyst sector is only one area of activity for Mineworx Technologies. The Company's many technologies also lead to reduced water consumption and more energy-efficient construction in the mining industry. Because less toxic chemicals are used due to the elimination of cyanide, approval processes are also much faster and tailings ponds become obsolete - all in all, a well-rounded story in the field of environmentally friendly technologies.
The Mineworx Technologies share's home market is the Canadian Stock Exchange. With around 342 million shares, the market capitalization is currently only CAD 24 million. The stock is also listed in Frankfurt and Stuttgart. Mineworx is a green admixture with huge potential.
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