An astounding share price increase – from around 300 to over 520 CHF – we’re seeing for specialist in reciprocating compressors Burckhardt Compression, where I was still calling for rebuys a few months ago after the price slump. This is a company, though, whose shares are in a really narrow market, which is why they should only be viewed as a portfolio addition. However, here it can be seen that many supplier companies and specialist firms are participating in the hydrogen boom.

This development is due to the very good company figures, which have a lot to do with the Swiss company’s products in the environment of the rapidly growing global hydrogen economy. These are impressive numbers: The order volume of over 706.7 million CHF was a formidable 56.8 percent increase from the same period last year. Turnover growth was a good 25 percent in the first half of the year and turnover rose to 335.8 million CHF. Earnings per share even increased by 37.7 percent, to 7.23 CHF.

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Burckhardt Compression has delivered very good figures as well as a perfect outlook. Its systems are necessary for among other things the compression and liquefaction of hydrogen (see p. 24). The current share price has now sufficiently factored in the figures in the company’s valuation. A big cash out might come out of this, with the share price development almost suggesting that the company could also become a candidate for takeover, as many large companies in the world are repositioning themselves and looking for interesting players for a synergistic acquisition.

Disclaimer

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: written by Sven Jösting December 12^th, 2022