Shareholders discover fuel cells

Share price development of the six discussed companies

The reports are overwhelming as far as the areas of application and potential of the fuel cell are concerned, and politicians in Germany have also finally woken up. The stock exchanges have led many FC companies into a real course euphoria. But also, contradictions find their way into the media, according to which China allegedly plans to reduce or even completely discontinue the promotion of battery-powered, but also fuel cell-powered electro-mobility. On the other hand, from a very well-informed source one hears exactly the opposite, namely that precisely the promotion of the fuel cell and the associated infrastructure in China is being set up anew, that only the battery promotion is being limited.

Individual Chinese provinces and mega cities are already in the process of paving the way for fuel cells and green hydrogen. The positioning – worldwide – in the various FC markets such as trucks, buses, ships, rail vehicles and many others is in full swing, which is also reflected in various joint ventures and capital investments. We expect to see the right scaling effects from 2020 onwards. The stock exchange is already anticipating this future.

In fact, there are different data on the current march direction and promotion policy in China. In view of the several thousand fuel cell vehicles that exist in the People’s Republic to date, the question arises as to why promotion should be discontinued now if the declared goal is to achieve 1 million FC vehicles by 2030. In any case, Ballard boss Randy MacEwen was relaxed when he returned directly from China to Hamburg to report on developments there (see interview p. 54).

On the stock exchange one should currently focus on the stocks or companies and their shares to which the greatest price potential can be allocated, which lead technologically, whose balance sheet ratios are right, whose market prospects are good, where the respective management is convinced and, above all, where the stock market valuation matches the various indicators (turnover, liquidity, orders on hand, technologies, etc.). The companies discussed here fulfil all these factors.

read more in H2-international February 2020

Risk warning

Every investor must always be aware of his own risk assessment when investing in shares and also consider a sensible risk diversification. The FC companies and shares mentioned here are small and mid-caps, i.e. they are not standard stocks and their volatility is also much higher. This report is not a buy recommendation – without commitment. All information is based on publicly available sources and, as far as assessment is concerned, represents exclusively the personal opinion of the author, who focuses on a medium- and long-term valuation and not on a short-term profit. The author may be in possession of the shares presented here.

Author: Sven Jösting, written beginning of December 2019

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