Ballard Power – Over 50 percent of stock market valuation in cash

The new hydrogen train from Siemens, © Siemens
The new hydrogen train from Siemens, © Siemens

It is unfortunately so: There are many traders and short sellers, but also some analysts, who do not focus on the prospects of a company, but take quarterly results as the basis for classification – a very short-term placement, but of course with a (short-term) impact on the share price performance. We’re also seeing this with Ballard, for which I often hear that the turnover is disproportionate to the stock market valuation and that the company is still making losses.

What is forgotten here: Ballard positions itself in many markets (rail, ship, truck, bus, also stationary energy supply) via fuel cells. There are many prototypes, small series and pilot projects. What they all have in common is that they are developing into huge markets and Ballard sees itself as a technological frontrunner. An order for ten bus stacks then quickly turns into 100, or even 1,000, with corresponding scaling and profit margin. That, first, an investment in the production capacity is needed, huge amounts of money poured into optimization and proper positioning, for example through successful completion of pilot projects, before it can go into large series production, is obvious. But this takes time and must be seen in terms of years rather than individual quarters. This calls for patience on the part of the investor and also a certain optimism, coupled with staying power in the face of falling prices.

The reward is then visible at the end of the day in a stock market valuation that takes account of the prospects. High order growth and, of course, a sustained strong increase in company profits are enticing. Ballard is steadfastly implementing its plans – which, with over 1.1 billion USD in the bank (more than 50 percent of the stock market valuation), it can finance through its own means. The first quarter in figures: A minus per share of 0.14 USD, 21 million USD turnover, order backlog on an annual basis of approx. 100 million USD, new orders in the quarter of over 27.8 million USD.

Siemens’ H2 train Mireo Plus H
I venture to predict that in some markets, such as buses, things are now getting off the ground and will continue until the point that there’s even a boom and buses worldwide are equipped with fuel cells and hydrogen.[…]

… Read this article to the end in the latest H2-International

Each investor must always be aware of their own risk when investing in shares and should consider a sensible risk diversification. The FC companies and shares mentioned here are small and mid cap, i.e. they are not standard stocks and their volatility is also much higher. This report is not meant to be viewed as purchase recommendations, and the author holds no liability for your actions. 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 medium- and long-term valuation and not on short-term profit. The author may be in possession of the shares presented here.

Author: Sven Jösting, written June 11th, 2022


Leave a Reply