07. May 2021 | 15:24 CET
Volkswagen, Daimler, dynaCERT: Which share can increase fivefold?
The mobile future is electric. But how sustainable is that? Millions of vehicles with combustion engines are intact and doing their job - whether for the daily commute or as a "family car" for occasional shopping trips or outings. Cars needed for infrequent but long journeys, or cars generally only used very rarely, are too good for the scrap yard from an economic and ecological perspective. A company from Canada offers a solution for this. We analyze where the opportunities for investors are greatest.
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ISIN: DE0007664039 , DE0007100000 , CA26780A1084
"[...] We are committed to stay as the number one Canadian and global leader in the Hydrogen-On-Demand diesel technology [...]" Jim Payne, CEO, dynaCERT Inc.
Volkswagen: How "green" is the e-car boom?
Volkswagen's stock brings it a return of around 100% over a one-year horizon. That is a very dynamic development for an automotive group. The global corporation from Wolfsburg made an early commitment to electromobility. A few months ago, the Company announced that it wanted to invest heavily in electromobility supply chains. Numerous smaller companies are promising themselves a piece of the pie as a result of this announcement. But the competition is fierce, especially when it comes to batteries for electric cars - and the competition from China is also very cheap. The extent to which the auto industry's commitment to electromobility can bring new business to smaller suppliers from Germany must be decided on a case-by-case basis.
In addition, a large number of combustion engines are still being sold. Although the share of hybrids and fully electric vehicles was recently already appreciably high, reaching the 20% mark of new registrations, many hybrids are hardly used electrically. It is therefore difficult to say whether the e-car trend has really caught on with buyers. However, Volkswagen's share price has already priced in a large part of the e-car euphoria. Further surprises will have to be significant to boost the share price further.
Daimler: Things are going well - especially in China
Daimler's share price has risen even more strongly than VW's. The main reason for this was a strong profit performance. Even if sales were sometimes a little lackluster, profits have consistently increased well in the past quarters. The China fantasy is particularly interesting for Daimler. As with Volkswagen, the cars with the star also appeal to many Chinese. The strong brand image of German premium manufacturers outshines many competitors and provides a decisive competitive advantage in a growth market.
Daimler is working to significantly reduce its operating costs by 2025 and plans to cut up to 25,000 jobs to achieve this. What may come as a shock to employees is usually good news for the market. Particularly because of the mobility revolution, it is welcomed when companies become leaner. The share is in a stable upward trend. While this has been going on for a long time, Daimler is on a good path, which is also reflected in the share price.
dynaCERT: Sustainability play in exciting niches
One can also see from the development chart that the dynaCERT share has a lot to offer. For years, the stock has repeatedly been good for dynamic breakouts and rapid price rallies. The Company is a solution provider for all those who want to make existing vehicle fleets more sustainable. To this end, dynaCERT has developed its HydraGEN™ retrofit electrolysis system, a product that can lead to significant savings in consumption and CO2 emissions for diesel engines - TÜV-tested at up to 19%.
An exciting niche for dynaCERT is vehicle fleets, such as in local public transport, logistics or mining. The public sector is increasingly taking a pioneering role when it comes to environmental protection and sustainability. At the same time, however, vehicles are already available and funds are limited at local authorities. A conversion kit from dynaCERT is available for around USD 6,000. In addition to fuel and emissions savings, the system also ensures that CO2 is saved. This is rewarded with emission rights. dynaCERT also offers control software for passenger cars that measures and reports such savings. For all municipalities and companies that want to become greener, dynaCERT's solutions are a good alternative.
Haywood analysts see great potential
dynaCERT is currently working on marketing its system on a large scale. The Company has already achieved some successes in the past, but the big hit has not been witnessed yet. On the other hand, the share has come back well in recent months. In January, the analysts of the Canadian brokerage firm Haywood named dynaCERT a top pick in the sustainability sector - with a price target of CAD 2.20. Currently, the value is quoted at CAD 0.44. Speculative investors can see opportunities in this.