20. August 2021 | 10:47 CET
Volkswagen, dynaCERT, BYD: Sudden turnaround ahead?
When Volkswagen CEO Herbert Diess visits Markus Lanz's talk show, the corporate leader exudes an esprit that almost comes close to celebrity founders from the USA. Even if a comparison with Elon Musk would be far-fetched - they seem more modern and flexible, the managers of German corporations. This flexibility is probably also necessary to lead huge corporations into the future in a time of change. The challenges are great: In addition to the uncertainty about the future, numerous smaller companies are also digging in their heels and want to wrest market shares from the big players. We take a look at three stocks that focus on the future of mobility.
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ISIN: VOLKSWAGEN AG VZO O.N. | DE0007664039 , DYNACERT INC. | CA26780A1084 , BYD CO. LTD H YC 1 | CNE100000296
"[...] Why should a modular electrolyzer cost more than a motorcycle? [...]" Sebastian-Justus Schmidt, CEO and Founder, Enapter AG
Volkswagen: Why the share is weakening
After being one of the high flyers of the old economy for many months, the Volkswagen share has been weakening for three months and has lost around 7.5%. However, this is negligible given the 43% gain in the share price over the past year. One could even speak of a signal of strength - after all, Volkswagen is in a transformation process in which not everything necessarily runs smoothly. Only recently, there were media reports about electric cars catching fire. No automaker can afford such a scandal. In the meantime, VW is investigating fires in the ID.3 model and emphasizes that these incidents are extremely rare.
The chip shortage is likely to be a much bigger problem anyway. Today, even cars contain countless semiconductors. These are in short supply worldwide. This shortage means that the assembly lines have to come to a standstill time and again. At Volkswagen, this is once again the case. At the main plant in Wolfsburg, production will be cut back after the summer break. Although a temporary reduction in production capacity should not be a major problem, as customers will just have to wait a little longer, the chip shortage could become a problem in the medium and long term. Here, VW is called upon to find appropriate solutions with manufacturers or suppliers. The share is no longer cheap, but it is solid. However, those looking for growth will find other stocks.
dynaCERT: When will the breakthrough come?
One such growth stock is dynaCERT. The Company has set itself the goal of making conventional combustion engines cleaner. To this end, the Company uses its patented HydraGEN™ technology. In this process, a device retrofitted to conventional vehicles adds a hydrogen mixture to the combustion process. It ensures a reduction in consumption of around 19%, and CO2 is also saved to the same extent. Since dynaCERT also offers telematics software, users can document CO2 savings and convert them into CO2 certificates. The latter is especially interesting for the industry. In the past, dynaCERT has worked with municipalities and, among other things, equipped local public transport with its systems.
Given rising fuel prices, the technology could also be used for trucks in North America. Many trucks are still gas guzzlers, and while pure hydrogen trucks are still a thing of the future, dynaCERT's solution could step into the breach as a transitional technology. High-mileage trucks, in particular, should find it worthwhile to purchase the equipment for around USD 7,000. The share of dynaCERT has suffered from weaker listings of cleantech companies and is currently trading around EUR 0.20. The stock appears battered from a chart perspective, but even a new order could revive the stock. The share is a case to keep in mind - dynaCERT is likely to become a hot topic in the course of hydrogen shares picking up again.
BYD: Conditions are right here
BYD is a stock that has been enjoying the highs at the same time as dynaCERT. The Chinese automaker scores with long ranges and is considered a serious competitor for Tesla - even if Tesla boss Elon Musk often only laughs at BYD's cars. Recently, the stock weakened and lost about 4% for five days. After the previous rally, however, a short setback is no wonder. It will be exciting to see if the stock can once again sustainably break above the EUR 30 mark, in which case new price momentum could emerge. With its battery production and semiconductor business, BYD is well-positioned. However, the stock is no longer a newcomer.
While Volkswagen still has to cut off many old braids to arrive in the future of mobility and BYD does not yet have a good reputation, especially in the West, dynaCERT could hit a nerve with its focus on diesel engines with high mileage. Trucks or heavy machinery, in particular, are expensive to buy. It pays to keep them in operation for longer, and this is where dynaCERT could score points. A trend reversal could happen suddenly!