Hydrogen Horizons: The MASSIVE Potential of Green Gas Stocks

Hydrogen investments offer people a chance to back a sustainable future, while taking advantage of an industry that lies on the cusp of ENORMOUS growth!

Aug 14, 2023

Jericho Energy Ventures (TSXV: JEV) (OTC: JROOF) is THE green transition opportunity. It’s developing the next generation of green hydrogen solutions for the massive industrial and commercial markets. Governments around the world are spending billions in hydrogen grants and incentives, meaning there has never been a better time to get behind this rapidly growing industry!

Jericho could be investors’ ticket to ride the green wave.

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Hello, and welcome to another edition of Investing Intel from the team at ValueTheMarkets! As always, the newsletter is packed with stock picks and investing insights we think you’ll enjoy, including:

👉 Three stock tips

👉 Investing signals

👉 Fear & Greed

👉 Key dates for your diary

👉 Investment strategy insights

In this edition of Investing Intel, we’re examining hydrogen stocks and the industry at large. It’s an exciting space with some massive potential for growth as the world seeks to adopt renewable energy sources and cut down on harmful carbon emissions. Hydrogen isn’t implicitly a green investment, but exciting renewable energy applications make the industry highly compatible with green power innovation!

Eagle-eyed readers will notice that we’ve already recommended a hydrogen stock this month…

Last week, we recommended hydrogen energy stock Plug Power Inc (NASDAQ: PLUG), so we won’t re-tread ground and examine the stock again. Instead, we’ve picked out three new green hydrogen stocks that might tantalize your portfolio. Read on to check them out…

Bloom Energy (NYSE: BE)

Bloom Energy’s key asset is its electric power generation platform, dubbed the Bloom Energy Server. This technology aims to help deliver reliable, resilient, 24/7 onsite power to customers, with world-leading efficiency. The business is hoping this solution will be attractive to customers looking to meet sustainability targets while also maintaining reliability.
The server is constructed from Bloom’s solid oxide fuel cell technology offers high electrical efficiencies and low operating costs, making the product attractive to customers.
The company’s technology also includes the Bloom Electrolyzer, which it claims can produce clean hydrogen 15% to 45% more efficiently than the competition. If hydrogen takes off as an energy source, Bloom Energy is, therefore, well-placed to benefit.
The business is a centre of hydrogen energy innovation. In May, Bloom started generating energy with the world’s largest solid oxide electrolyzer installation at NASA’s Ames Research Center and claimed its electrolyzer was the most efficient on the planet. New and exciting product launches are also frequent.
Bloom Energy has financial momentum too, achieving record revenues in its most recent quarter and significantly reducing costs as the business closes in on turning a profit. The business also remains on track to reach full-year targets.

Linde PLC (NYSE: LIN)

This multinational chemical giant has a technology portfolio which includes solutions that allow for the compression and safe refuelling of hydrogen. The business has built more than 200 plants for hydrogen manufacture, with the majority of these plants implemented as turnkey facilities for a fixed price.
The company’s huge experience with gas production and distribution leaves it well-placed to profit from the rising demand for hydrogen. An example of this experience is the 50-mile gas transportation pipeline that Linde owns and operates a 50-mile pipeline network for gas transportation in Leuna, Germany.
The business revealed earlier this year that it plans to sink between $7bn and $9bn into clean energy projects over the next two-to-three years. Linde says this plan, which indicates more hydrogen projects are on the way, is an effort to benefit from demand from companies seeking to cut emissions.
Hydrogen is just one of Linde’s areas of expertise, with the business’s varied operations offering investors a great deal of diversification compared to many other industry players.
The company also boasts strong financials, with underlying sales and operating profits on the rise. Diluted earnings per share were up by more than 300% in the company’s most recent update, indicating its enviable financial position. To cap it off, Linde has a solid track record of hiking its dividend payout.

Ballard Power Systems (NASDAQ: BLDP)

Ballard is a leading light when it comes to fuel cell technology, aiming to offer customers a product which achieves superior performance at a cut price. This offering from its unique next-generation, proprietary graphite bipolar plates is expected to make the business hugely appealing to potential customers.
Ballard has set its sights on reducing its cost of producing fuel cells by 70% by late 2025, creating a clear and identifiable benchmark for success.
The company is a particular specialist in providing hydrogen fuel cells for transportation, manufacturing a variety of heavy-duty fuel cell modules for buses, trucks, trains and ships. Expertise in this niche could pay off if hydrogen-fueled vehicles become more commonplace.
Some very high-profile players have been won over by Ballard’s technology and expertise. A recent letter-of-intent indicates we could soon see a partnership with automaker giant Ford, with the duo collaborating on a hydrogen fuel cell-powered vehicle.
Ballard’s financials are a chink in the company’s armour. The business is some way off profitability and losses appear to be growing. However, the company has serious financial backing and enough cash and cash equivalents to fund operations for years as Ballard keeps fishing for an opportunity to leap into the big leagues.

Investing Signals

High(drogen) Potential

Now that we’ve examined three standout stocks from the industry, it’s time to ask - why hydrogen?

The answer here is the energy source’s massive potential and the fact that it’s starting to attract some serious attention. Governments around the world are investing huge sums in hydrogen energy programmes as they seek to cut greenhouse gas emissions.

There is perhaps no better example than that of the United States, where the Department of Energy’s Regional Clean Hydrogen Hubs program will see $7bn invested into networks of hydrogen producers, consumers, and local connective infrastructure.

It’s no wonder they’re so interested. Hydrogen gas can be produced emission-free, and the only by-product of its use is water. It’s key to the viability of renewables like solar and wind energy, as the gas can be produced as a vessel for energy storage when production is far higher than demand. This renewably produced energy is known as green hydrogen.

Its existence is one of the reasons the International Energy Agency has highlighted hydrogen’s versatility and potential to play a key role in the green transition.

A report produced by the organisation even noted that hydrogen is “enjoying unprecedented political and business momentum, with the number of policies and projects around the world expanding rapidly. It concludes that now is the time to scale up technologies and bring down costs to allow hydrogen to become widely used”.

But does this mean investing in hydrogen stocks is a good idea?

Well, numerous sources indicate that production and demand for the gas will soar in the coming years.

There are strong indications that green hydrogen is poised for particular takeoff too. For example, a Goldman Sachs report from March estimated that as much as 137 GW of green hydrogen projects will be installed in the US by the end of 2030. Compare that with the 0.3 GW of capacity that was installed at the end of 2020 and you might appreciate the colossal scope of the hydrogen opportunity.

That’s why green hydrogen could be the long-term energy investment your portfolio has been looking for!

Trending Stocks

This week’s top trending stocks on Google are laid out below:

PENN Entertainment (NASDAQ: PENN)
Hawaiian Electric Industries (NYSE: HE)
Vistagen Therapeutics (NASDAQ: VTGN)
Super Micro Computer (NASDAQ: SMCI)
Tilray Brands (NASDAQ: TLRY)

PENN Entertainment is the biggest headline-grabber after the gambling giant struck a $2bn deal with leading sports broadcaster ESPN. The new deal will see the duo work together to launch a branded sportsbook, dubbed ESPN BET.

Following the disastrous fires in Hawaii, Hawaiian Electric Industries has seen its share price tank as investors ditched the stock due to infrastructure damage concerns.

Vistagen has also seen share price declines over the last week, though the company’s share price is still up by more than 250% over the last month after achieving strong results in phase 3 trials of its social anxiety treatment candidate.

California-based IT giant Super Micro Computer has fallen by more than 20% over the last week as part of the broader correction in the pricing of AI stocks. Finally, cannabis stock Tilray Brands has gained more than 50% over the last month due to investor excitement over the company’s acquisition of eight brands from Anheuser-Busch.

Fear & Greed

The Fear and Greed Index is a measure of stock market sentiment calculated by CNN Business using seven measures, including market momentum, market volatility, and safe haven demand. It’s meant to shed light on the emotions currently driving the market, giving you insight into how traders are making decisions. Remember, traders are humans, not robots.

Investor sentiment remained steady last week following a period of mixed news and data, with US inflation dipping beneath expectations but the NASDAQ Composite declining for the second consecutive week.

Early indications suggest there could be more of a bumpy ride to go, with renewed trouble in the Chinese property development market causing European stocks to have a subdued open on Monday morning.

Dates in the Diary

Monday 14^th – US Consumer Inflation Expectations (Jul)
Tuesday 15^th – US Retail Sales (Jul) / Canadian Inflation (Jul) / Chinese Industrial Production (Jul) / UK Unemployment Rate (Jun)
Wednesday 16^th – Fed Meeting Minutes / US Preliminary Building Permits (Jul) / US Industrial Production (Jul) / Eurozone Industrial Production (Jun) / UK Inflation (Jul)
Thursday 17^th – Eurozone Balance of Trade (Jun) / Japanese Balance of Trade (Jul)
Friday 18^th – Canadian PPI (Jul) / Japanese Inflation (Jul) / UK Retail Sales (Jul)

Investing Strategies – Short Interest Theory

This is how it feels to go against the grain and champion those shorted stocks…

To understand short interest theory, comprehending the fundamentals of short selling is essential.

Holding a short position on a stock is one of the simplest ways for investors to make money. Simply put, they bet against a stock’s fortunes, creating a scenario in which they will profit from deterioration in a particular stock’s price.

They do this by borrowing some shares in the company they wish to short and then selling these borrowed assets. The short seller will then wait for changes in the stock price, hoping for a significant decline. They can close out their position by rebuying the original amount of stock they borrowed and returning them to the original lender.

If the price has dropped, they pocket the difference. If the price has increased, they instead find themselves out of pocket.

Simple.

But short interest theory is the concept that a high level of short interest in a stock is a strong indication that its price is set for an increase. This is based on the idea that a small rise in a heavily shorted stock can lead to serious momentum as more and more panicked short-sellers seek to control their losses by closing out their positions, and hence purchasing more of the stock at the current market price.

Investors interested in taking advantage of short interest theory should monitor stocks’ short interest and short interest ratio. The former is the total number of shares sold short, while the latter divides the number of short positions by average daily trading volume.

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Investing Intel