The topic of hydrogen and fuel cells is also becoming increasingly hotly debated on the stock exchange. The takeover of Hydrogenics, the Canadian frontrunner in fuel cell systems for trucks and rail vehicles as well as for electrolysers, by the US company Cummins Engine, should make people sit up and even trigger a wave of further takeovers or participations of listed companies in the industry.
Leading previously unlisted companies such as ProtonOnsite (USA) had already found a buyer – in this case the Norwegian Nel Asa – and thus also received the indirect IPO. At Ballard Power – the global market leader – strategic Chinese investors are already major shareholders. Guess why!
Cummins Engine, the US engine manufacturer (trucks, ships, rail vehicles), offers $15 per Hydrogenics share. If you paid 4 US-$ at the turn of the year, this is a nice increase (I pointed here several times to the perspectives). Unfortunately, the stock market story is now over. Clear recommendation: Invest the equivalent in Ballard Power or Bloom Energy and a highly speculative small part in FuelCell Energy.
Cummins as well as the management of Hydrogenics and major shareholder Air Liquide have agreed on the takeover, so that 15 US-$ per share is the last price and one should sell there – holding does not make sense. The story is hereby positively concluded. However, this shows that large companies are increasingly looking to acquire their own lack of know-how through takeovers in the industry. However, there are not that many listed FC companies.
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 obligation. 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 mid of August 2019