𝐇𝐲𝐝𝐫𝐨𝐠𝐞𝐧 - 𝐢𝐬 𝐭𝐡𝐞 𝐡𝐲𝐩𝐞 𝐨𝐯𝐞𝐫?
𝐓𝐡𝐞 𝐁𝐚𝐥𝐥𝐚𝐫𝐝 𝐏𝐨𝐰𝐞𝐫 𝐬𝐡𝐚𝐫𝐞 𝐞𝐱𝐩𝐞𝐫𝐢𝐞𝐧𝐜𝐞𝐝 𝐚 𝐦𝐢𝐬𝐞𝐫𝐚𝐛𝐥𝐞 𝐥𝐚𝐬𝐭 𝐭𝐫𝐚𝐝𝐢𝐧𝐠 𝐰𝐞𝐞𝐤 𝐚𝐧𝐝 𝐭𝐡𝐢𝐬 𝐨𝐧𝐞 𝐛𝐞𝐠𝐢𝐧𝐬 𝐥𝐢𝐤𝐞 𝐭𝐡𝐞 𝐥𝐚𝐬𝐭 𝐨𝐧𝐞 𝐞𝐧𝐝𝐞𝐝. 𝐀𝐭 𝐢𝐭𝐬 𝐩𝐞𝐚𝐤, 𝐭𝐡𝐞 𝐬𝐭𝐨𝐜𝐤 𝐥𝐨𝐬𝐭 𝐚𝐥𝐦𝐨𝐬𝐭 𝟑𝟒 𝐩𝐞𝐫𝐜𝐞𝐧𝐭, 𝐰𝐢𝐩𝐢𝐧𝐠 𝐨𝐮𝐭 𝐚𝐩𝐩𝐫𝐨𝐱𝐢𝐦𝐚𝐭𝐞𝐥𝐲 𝟏.𝟕𝟕 𝐛𝐢𝐥𝐥𝐢𝐨𝐧 𝐞𝐮𝐫𝐨𝐬 𝐢𝐧 𝐦𝐚𝐫𝐤𝐞𝐭 𝐯𝐚𝐥𝐮𝐞. 𝐄𝐯𝐞𝐧 𝐭𝐡𝐨𝐮𝐠𝐡 𝐚 𝐜𝐡𝐚𝐫𝐭 𝐫𝐞𝐜𝐨𝐯𝐞𝐫𝐲 𝐦𝐨𝐯𝐞𝐦𝐞𝐧𝐭 𝐛𝐞𝐠𝐚𝐧 𝐨𝐧 𝐅𝐫𝐢𝐝𝐚𝐲, 𝐭𝐨𝐝𝐚𝐲 𝐰𝐞 𝐬𝐞𝐞 𝐚𝐠𝐚𝐢𝐧 𝐡𝐨𝐰 𝐦𝐮𝐜𝐡 𝐝𝐨𝐰𝐧𝐰𝐚𝐫𝐝 𝐩𝐫𝐞𝐬𝐬𝐮𝐫𝐞 𝐢𝐬 𝐩𝐫𝐞𝐬𝐞𝐧𝐭.
Ballard Power Systems Inc. is a Canadian manufacturer of fuel cells. Ballard's zero-emission PEM fuel cells enable the electrification of mobility, including buses, commercial vehicles, trains, marine vessels, passenger cars and forklifts.
Hydrogen, global warming, decarbonization of mobility - all topics that are hot right now and will remain so in the years to come. Undoubtedly an industry of the future, whose shares have been in a strong correction mode since February.
And last week, the worse-than-expected quarterly results from $NEL.OL (NEL ASA) and Ballard Power dealt another blow. Ballard also has problems with a plant in China. The numbers and outlooks from $NKLA (Nikola Corp) and $BE (Bloom Energy Corp) did little to help. Even the mass of positive operating news paled before generally unsettled and "secure profits at all costs" investors in hydrogen stocks. For one thing should not be forgotten: A year ago, hydrogen stocks were trading at a much lower level.
To Ballard Power in particular:
Ballard Power continues to post losses. This is not unusual for a company that is still scaling its business - but there was no sign of growth last year. Consensus forecasts predict Ballard Power will return to solid growth in the coming years, with sales expected to nearly quadruple by 2024.
There are great opportunities in the hydrogen market, where Ballard's products could be in demand as an industry pioneer. Particularly in heavy transport, there are opportunities for lucrative business for the Canadians. By 2024, Ballard Power aims to reduce the cost of fuel cell stacks by 70 percent. That would further expand the current gross profit margin of a good 20 percent. Does this mean that we should now rather sell and look for the next best thing? No! Watching the chart, you see, that Ballard Power always had ups and downs in its history, even in its more distant one.
The same rules apply as always: if it's a good company with a good outlook, a high investment ratio and lots of gunpowder, it's a "hold". Because that's what Ballard Power offers. Nonetheless, there's still enough pressure there that it doesn't feel like a buy at the moment in my eyes - but we're getting closer.
Have a good start of the week