ITM Power, PowerCell and Nel – too expensive

I am watching these titles very closely. However, the valuations are now so high – relative to sales, equity, orders on hand – that one should rather remain engaged in the titles I have presented and even put the above-mentioned for sale and cash-in existing book profits. This is an opinion – without commitment – based on the comparison of the indicators. But what is clear: The more investors continue to focus on the fuel cell, the more all companies and their shares will be able to profit from it – the new mega-trend is only now really beginning.

BZVision (Wikifolio)

In view of the strong price increases at Bloom Energy, FuelCell Energy and Ballard Power, the depot value has since risen considerably by more than 40 percent in the quarter. In the meantime, I had closed out 5,000 of 20,000 Ballard at about € 4.85 (US$ 5.50) and increased the position in Bloom to 10,500 as well as FuelCell to more than 39,500 – the latter, however then closed out. After the massive increase at FuelCell, I cashed-in the profit there and increased shares in Bloom Energy. This mix should be maintained for the time being, unless one of the titles rises so much that temporary profit taking seems sensible. According to the motto: Even trees don’t grow into the sky.

Alternative investments, for example in ITM Power, Nel and PowerCell, are not beneficial – because these other stocks are relatively simply valued so much higher that an exchange simply makes no sense. A put warrant on Tesla (critical for models based only on battery technology) could be included in the depot. Here, however, I am still looking for the right one based on the term (6 to 24 months), the base rate (US$ 250 to 300) and the leverage.

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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