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A surprising use but PPS have won a contract to supply 300 units to work as back up power supply to tunnel systems.
There tech seems to have numerous uses, looking forward to many more orders and with the finance sorted with lower interest and better terms can see this re rating over the next few weeks. GLA
Might be of interest
https://www.hydrogenfuelnews.com/proton-motor-awarded-kst-hydrogen-fuel-cell-contract/8540867/
Yes Colonel, I have been one of the voices questioning the sustainability of the previous model...from the interests of shareholders that is. This change might make it worth another look. I still hold a few shares to help me keep an eye on it, but maybe I can start topping up again. I'll need to check what the real debt pile is now and the mechanism for paying it back. Interesting turn of events though.
agreed, it's positive. There have been concerns raised on this board re the unusual(?) way this company is financed.
It's never been a major concern for me, and in some ways, this RNS provides further reassurance.
Col
Interest reduced to 3% above libor ( at present -0.5% ) from 10% plus a limit on convertible shares, agreement put in place med to long term. It may not be another contract but great news reducing the debt burden and dilution for share holders.
Another potential contract win, RNS does not work cant find on the website. Not mega news but every little helps.
Planes,boats,and trains..generators,machinery,energy company’s...you name it..hydrogen is at the start of a magnificent journey to help clean up the planet..time to jump on board at the very start of it.GLA
Just catching up with the report and from a product view we are extremely well placed. Still holding some an and have sold into the rise as I have held for a few years. The future is green. GLAH
Just watched Mercedes and Lewis Hamilton BLITZ the Belgium Grand Prix at Spa...
That’s hopefully a great omen for protons future in Germany...VRR oooooM..
Where are all the trades though? How does this go from 9m shares traded 3 months ago, 2m shares traded 2 months ago, to less than 8000 shares traded today? Where is everybody?
It’s great to see company’s like Proton coming together with a company like SHELL ENERGY to take the green techs forward..I’m fully expecting proton to work with other major company’s in the near future..it’s the way forward...another young company with great green technology is EQT ..in my opinion will change the world massively green..Itm also involved with SHELL ENERGY all positive for the planet ..GLA
Same here TheOldBee. I've held since 3p so made plenty. But the share structure just keeps putting me off. It was not so noticeable a few years ago as the loan size requirements weren't a big problem, but they're just scaling with the company's need for larger cashflow to fulfill the 'relatively' small orders. I've sold regularly on the way up and my shareholding certainly doesn't owe me anything. A fresh look at the numbers again today made me sell another chunk. I'm going to leave the final 8000 shares on the table so I keep an eye on PPS progress. You never know which way these things will pan out.
Toneman, some really good points. I have made some very good gains with PPS But very unhappy with the family ownership loan situation so finally I have sold out as a lot of the numbers don't really add up for a long term build and hold.
But the Company has a good the product/range and puts itself about and keeps the shareholders informed with regular RNS so I will be looking to jump back in should the opportunity arise. Good luck all
From today's RNS these are my points of concern...
80% of order intake in 2020 to the date of this report is derived from the stationary segment.
Sales in the first half of 2020 at £1.1m.
2020 order intake to the date is £6.5m.
The 2019 global fuel cells market size was valued at approximately USD 10.48 billion.
The market size will exceed USD 33 billion in 2027.
So interpreting a few things...
Proton Motors share of the market (est 2020 orders USD 15m) is therefore approx 0.15%.
If Proton don't grow market share then their order intake by 2027 would only be approx USD 47m.
Ignoring my last post about shareholders paying loan interest not PPS, then I'm not convinced that even USD47m orders would deliver enough profit to pay for the loan interest, never mind pay off any loan capital.
Based on their market analysis PPS are going to have to grow market share significantly by 2027, but that's against stiff competition from the likes of Ballard, Plug, Powercell and Hydrogenics.
The cost of loans is a really peculiar one. Of the £76m of loans we know that £60m is at 10% interest, so owing £6m each year. But who pays that interest? Well the interest is taken by the lenders in new issue shares which are then free to sell on the open market. So the actual cash value of the interest is paid by anyone who purchases some of those new shares (the issued share value is often at a large discount to current SP). But actually all shareholders pay the interest in dilution of their holding. It's quite clever really, PPS borrows a load of money and then the shareholders pay the interest.
I would love to know the opinion of those of you who can interpret the financial results in particular regard to Cost of Loans, Loss per share and cash runway.
Reason ? my head hurts oh and the potential impact of work/order back log.
Many thanks
You're welcome slipanchor. Best of luck.
tomeman, Can't thank you enough for pointing in the direction of the Hydrogen Podcast Page.
I obviously still have a long way to go but I am beginning to get the picture and appreciate your time and help.
slipanchor, there's an "Everything About Hydrogen" podcast that I can highly recommend. It's been running about a year with episodes approx every two weeks so quite easy to catch up right from the beginning. They've got great interviews from some of my favourite companies - Ballard, ITM, Nel. Plenty of interesting ones from companies I'd never heard of too.
https://podcasts.apple.com/gb/podcast/everything-about-hydrogen-an-inspiratia-podcast/id1475783473
toneman, thanks for the list of Hydrogen Companies and your thoughts on the industry
My main holdings are in oil companies but have been thinking about diversifying into clean energy for some time. Taken from a number of articles I have read it would appear Hydrogen Fuel Cells are the future, unfortunately, it is something I know very little about, so I have a lot of research to do on both the companies and the industry.
Thanks once again for getting me started.
GLA
slipanchor, there are a lot of companies looking for a stake in hydrogen. Take a look at this press release listing the companies that signed an open letter to the EU declaring support for the Clean Hydrogen Alliance.
https://hydrogeneurope.eu/sites/default/files/2020.06.02%20Hydrogen%20Europe's%20CEOs%20Letter%20to%20EC_Press%20release.pdf
Ones I have an interest in are: Nel, ITM, McPhy, PHE, PPS, Plug Power, Ballard, PowerCell, Ceres Power, Johnson Matthey, Siemens, Velocys, Fuelcell Energy. I also have a side interest in renewables with Vestas, TRIG, UKW, Siemens Gamesa, Orsted, Broadwind, and GE. Most of them have been good for me, but not all. A lot have a had a good run so you might have to pick your timing well depending on your time horizon. Do your research well. My own opinion is that it's still early days for Hydrogen so my time horizon is still 10 years. In that time I think some of them easily have 5x to 10x growth...I just don't know which ones.
Historically hydrogen has had a few false dawns. I like to ask "If not now. When?"...but one of the most dangerous phrases on the stock market is "This time it's different". Good luck.
toneman.
I noticed the share structure on my first visit, what other Hydrogen stocks do you recommend taking a look at.
Thank you Toneman - really useful info which makes absolute sense. I wish all boards were as informative as this one .... too many people get so overexcited when a share swings up and down with too many people buying or selling (and getting locked in or out or losing money) on recommendations based on nothing concrete.
I have now top sliced (a big slice ??) and will keep a close eye
Yes, lownat. Those shares are regularly sold to generate cash which is then lent to PPS at 10% interest. The debt building up is quite large. Naturally PPS need to borrow that cash to survive until order volumes take over, but selling chunks of this holding can easily suppress the share price on such a low volume traded share.
For the record, I still own shares in PPS, but they're all on a free ride. It could fly or it could fail, doesn't matter to me either way. So I'm not deramping, just want to make sure you are happy with the share structure before you continue.
My only concern with this share was the ownership structure. I moved on as a result.