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Yes, I think that if tech shares continue to stage a recovery CWR will follow the market.
CWR has always been speculative, so when tech shares are sold off or are flavour of the month, they will respond more dramatically.
I have held CWR since before the share consolidation, when they were about 15p, and have simply top sliced numerous times when the SP moved to overbought.
I agree with both of your posts Chilting. Indeed, balancing CWR with fossil-based investments seems a sensible move to me and is what I tend to do. Your points re Ballard are also correct in my view and widely reported - the main lesson there for me is to exercise proper management and control - which needs to be applied to any investment in my view.
I am confident about CWR but believe it needs to be monitored closely - certainly not a ‘buy and forget’ (no share falls into that category in my view). An sp comparison between CWR and Ballard is interesting: https://invst.ly/utx1g
BLDP appears to be more volatile and to have chased CWR upwards during late 2020 - trailing CWR by about a fortnight. It then seems to have collapsed back - largely for the reasons you’ve outlined - dragging CWR along. The % scale here is correct relative to the start point in mid June last year and the price scale is that of CWR (as accurately as I can get it). I think there’s a fair chance - admittedly not a certainty - that CWR has bottomed out and that it will gain traction from the latest placing price and resume the historic trend upward. The next few weeks will hopefully bear this out.
Market cap isn't just about assets and profitability, you have to factor in sentiment and potential as well.
There isn't always a logic, but it shouldn't stop investment - just proceed with caution, as always, and diversify.
With over 4000 posts to your name nutri, I am surprised that you don't realise this, although if tennents is right, maybe you do?
As for BP, I agree, it looks like a good investment at the moment.
Have a look at nutri123a posting history.........and then filter
He really isn’t very good at this.
Am I missing something - value of assets just above £120 million... market capitalisation = £1.8 billion...? Was going to invest £30k in hydrogen companies but they are all overvalued by about 1000%. Going to stick my money in BP - undervalued; strong profit generation; pays excellent dividend and will probably end up buying these companies for a lot less than what they are worth today.
Ballard suffered a double blow in their latest quarter.
Earnings for power products mainly supplied to the Chinese market were down 25% and earnings from their Solutions project with Audi were down 29%.
These reductions could have been for a variety of reasons - Covid for example - so maybe the market has read to much into them.
Don't worry, this is a passing trend, inflation ups and downs…..
There is a bit more to it for Ceres, I think. Indeed, it is no accident that I’ve referred to Ballard over the last few days. It’s fairly clear that the latter’s 20% drop on May 4th, due to an unexpected failure to meet certain expectations, precipitated Ceres’ fall the same day. Indeed, Ballard have lost 60% since they peaked in February, which compares to about 30% in Ceres since it peaked. It can undoubtedly be argued that Ceres’ fall back to date has been sufficiently proportionate but there is enough similarity between the two, not least their Weichai stakeholdings, to make quite direct comparisons. It’s also worth remembering that both companies are speculative: their respective sp’s being based on excellent potential which could take some years to fulfill.
Clearly from my 'ménage à trois' post, I don't think Weichai are about to choose between Ballard and Ceres - although they might well do at a future date - with the potential consequences for other shareholders. They are currently heavily involved in both because they view them as leaders in alternative approaches and, perhaps, non-overlapping in terms of geography/market. I'm assuming that Ballard has the edge in lighter vehicles/applications whilst Ceres is geared more towards heavier vehicles, marine and fixed installations. Ballard's recent setback in terms of the market, echoed recently in Ceres suggests to me that both are now being asked to prove what they are capable of commercially . It could be a testing time and, as someone else said here earlier, CWR may not simply float back up to £16+ without proving that it is more than just the latest green tech stock to hold and the recent cash-raising needs to lead fairly swiftly to profitable production/activities.
If we are right Boyobach, just think what it will do to the SP - market correction or no market correction.
Chilting: So maybe Weichai are considering their options - could it be that they favour Ceres technology instead of Ballard's technology???
My thoughts exactly - their commitment to the fund raise is recent, their connection to Ballard is three years old now isn't it?
If you can keep your head, while all about you are losing theirs...
Don't worry, this is a passing trend, inflation ups and downs. Whether inflation stays or goes it won't stop the energy transition. That's a much bigger tailwind. Big companies like Bosch aren't going to be put off by this.
I sincerely hope so chilting as heavily invested here; not too long to wait to find out
Interesting comment re Ballard and Weichai and their joint venture.
Ceres said this in final results RNS on March 17th 2021
"Once the trial completes, we hope to announce the establishment of a joint venture fuel cell manufacturing company in Shandong Province, China, in mid-2021 to produce SteelCell® SOFC systems. As previously disclosed, the joint venture is intended to provide a staged path to high-volume manufacturing potentially for buses, commercial vehicles and other applications in China."
It could be that Weichai are back tracking on hydrogen fuel cells but I think that is unlikely - they can see the benefits beyond EV's.
So maybe Weichai are considering their options - could it be that they favour Ceres technology instead of Ballard's technology???
I was intrigued by the slump in Tesla stocks lately.
Reason three is also relevant to Ceres and more of a worry than inflation
What in the World Happened to Ballard Power Systems' Revenue?
The fuel cell maker's bottom line has always been in the red. But now, its sales also have taken a hit.
Fuel cell maker Ballard Power Systems (NASDAQ:BLDP) stock fell nearly 20% after it reported its quarterly results last week. Investors surely had high expectations from the stock, which was getting valued at more than 80 times its sales in January. In fact, the company has set for itself a lofty target of 46% annual sales growth through 2030. Against this backdrop, a 26% year-over-year drop in first-quarter sales understandably upset investors. Let's see why Ballard Power's Q1 sales fell, and what can be expected from the company going forward.
Why Ballard's Q1 sales fell
Ballard Power reported revenue of $17.6 million in Q1, which was 26% lower than the year-ago quarter. The company's management cited three main reasons for the drop in revenue. First, last year's comparable quarter was strong due to a large shipment, as well as no impact of COVID-19. So, in comparison, the revenue looked low in the latest quarter. Second, the company's sales historically are tilted toward the second half of the year, while the first half is typically weak.
The third reason, which I think is the most important, is that the policy pronouncements relating to hydrogen fuel cells in China had been slow in the last few quarters. China is Ballard Power's key market and accounted for 52% of its 2020 revenue. The company controls 45% of China's FCEV (fuel cell electric vehicle) market. It has a joint venture with China's Weichai Power, which also owns 15.5% of Ballard Power's outstanding shares. Indeed, slow development on the international policy front has impacted Ballard Power's sales growth in China.
This dynamic has long-term implications beyond the next few quarters. Advancements in battery technology could continue to impact hydrogen fuel cells' growth in the long term. In the absence of strong policy support, hydrogen fuel cells may not see the rapid growth that fuel cell companies are hoping for. Even though hydrogen fuel cell costs have fallen significantly over the years, they are still not competitive compared to other energy and storage options. So, they are dependent on government support and incentives to be financially viable -- not a great position to be in.
at least upto the present its not total armageddon on the us markets.
just hope I havent spoken too soon
Let's see what the closing price is tonight.
Tinhats it's worse over 4%
You'll find out 13.30 today whether these share along with others will surge or fall further; inflation less than 3.6% great news over that figure then tin hats on; spot on and who knows?
Bearing in mind that the March placing price of 10.60 was at a discount of 4.3% to the closing price of 1108 on March 17th, yesterday’s closing price represented a 10% drop from that Mar 17th level. The FTSE100 has gained 3.3% over the period, so CWR would be at about 11.44 today had it tracked that index.
The pattern of price movements for CWR following the March placing does not look altogether unexpected: there were inevitably some profit-taking points after sharp rises but the £10 base (965 intraday) seems well established, along with the long-term trend (blue). It’ll be interesting to see what happens next time the red limiting trend gets challenged, when a breakout would be very welcome! https://invst.ly/us3tu
Going to be volatile until the US publishes the latest inflation figures today
Inflation threat sparks global stock market sell-off
FTSE 100 falls 175 points as investors await crucial price data from the US on Wednesday amid fears world's biggest economy is overheating
11 May 2021 • 6:02pm
A global stock market rout sparked by fears of higher inflation that started on Wall Street spread to the FTSE 100 as investors braced for US price pressures to hit a 10-year high.
London’s blue-chip index tumbled below 7,000 points in its biggest fall in more than two months after a tech-led shares slump ahead of Wednesday's inflation figures for the world’s largest economy.
US inflation is expected to have jumped from 2.6pc to 3.6pc in April as global shortages send commodity prices soaring and demand is stoked by stimulus and re-openings.
Sensible comment by Shore Financial Investment Director; "Ben Yearsley, investment director at Shore Financial, said inflation was always likely to pick-up over the next few months given that in the same period a year ago economies were closed and oil prices slumped.
He said investors should only get concerned if higher inflation continues. "If inflation persists and we are still talking about it in six months, for example, then that is a different scenario and will maybe lead to higher interest rates."
nasdaq is reversing its losses in contrast to the dow