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Plug Power Stock Forecast

Plug Power is a pioneer in green hydrogen technology. Let’s take a look at whether Plug Power stock is worth investing at this stage.
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This article was originally published by Investment U

Climate change is a persistent theme in many discussions this decade. And global emissions have been on the rise. Hydrogen is seen as a potential solution. However, while hydrogen vehicles only emit water vapor, fossil fuels are often burned in the process of producing hydrogen. Plug Power stock is one of the companies working to remove emissions from hydrogen production completely.

CO2 emissions is an issue both for manufacturing facilities and for vehicles. While electric vehicles are widely considered the next big thing in consumer passenger vehicles, battery packs are very heavy. This is a problem for commercial vehicles. Likewise, manufacturing plants often rely on the burning of fossil fuels in their processes. And given the concerns about global emissions, hydrogen can be the solution to cut back on or eliminate emissions in both areas.

Plug Power is a pioneer in green hydrogen technology. So this would appear to be a good bet for the future. But as with any emerging industry, there is always a caveat, or more. We’ll take a look at how Plug Power stock is doing and whether it’s really worth investing at this stage.

Plug power stock forecast.

What is Plug Power?

Plug Power (Nasdaq: PLUG) is a company with headquarters in Latham, New York. The company focuses on producing clean hydrogen in order to address the dirty history of hydrogen production. Instead of using natural gas or coal, the company is producing it with a process called water electrolysis. This process, too, requires electricity. But Plug Power uses clean electricity sources such as solar and wind.

Plug Power says it already has more than 40,000 fuel cell units deployed. It also has 25 years of innovation under its belt. Its GenKey solution increases productivity while lowering carbon footprints. It replaces all of the elements normally powering a customer’s operation, replacing the lead-acid batteries typically used in the past. In other words, it not only reduces emissions but can help eliminate harmful chemicals that are traditionally used in batteries.

This has implications both in manufacturing and commercial trucking. Long-haul trucks typically rely on diesel fuel. But Plug Power’s ProGen engines integrate fuel cells to eliminate the need to burn fossil fuels. Of course, all of this sounds good. However, we must look at the numbers to determine whether Plug Power stock is a smart investment.

Quarterly Earnings

As with most companies in emerging industries, Plug Power stock struggles to maintain a consistent profit. Its most recent quarter, Q3 2021, shows a net profit margin of -74%. To go with that, it had revenue of $144 million and a net income of -$106.67 million. It has missed its revenue projection slightly, by 0.62%. It has also missed its earnings per share (EPS) projection by a wide margin, with EPS 129.5% lower than projected. Its EPS is currently -1.44.

Plug Power stock is generally considered overvalued at this juncture. And as mentioned, it hasn’t turned a profit consistently. However, it has a posting of 165% in profits in Q4 2020. It has also shored up its cash reserves substantially, raising a total of $5.4 billion in 36 rounds of funding. This includes a $62 million investment by Universal Hydrogen.

The U.S. Department of Energy has been funding Plug Power, the state of New York and Silicon Valley Bank.

Plug Power Stock Forecast

The first thing to note is that Plug Power has been public since 1999. So it has a lot more history in the stock market than most of the startups developing renewable energy solutions. Aside from a blip when its share price was over $1,000 in the year 2,000, its stock has mostly traded for $100 or less. It steadily declined in price from around $75 in 2004 all the way to just over $1 in late 2018.

This being said, PLUG has been on the rise. In fact, it jumped from $14 in October 2020 as the presidential race was heating up to a peak of $73 on January 25, 2021. This was just after President Biden was elected. That makes sense as Biden and the White House made big promises about clean energy.

However, Biden has struggled to get his Build Back Better agenda passed. And PLUG shares have suffered. Most recently, they traded just under $25.

Nevertheless, some forecasts still show an increase. In fact, you can find price targets around $50, or a near doubling of the current share price. That’s a big increase. And this increase will depend largely on the Build Back Better Act and similar legislation. Nevertheless, Plug Power stock is generally considered a buy right now. The Plug Power stock prediction for 2025 puts at around $64 by the end of the year. 

Is Plug Power Stock Worth Buying?

Plug Power is continuing business as usual. At the same time, its share price is down more than 60% from its January 2021 peak. The initial excitement created by President Biden’s commitment to clean energy has waned somewhat. Perhaps leading to a drop-off in investor excitement.

Nevertheless, some consider Plug Power stock a strong buy. 12-month price targets are around double PLUG’s current price. If the Build Back Better Act or a similar agenda is passed, it will bode well for the future of PLUG. Chances are, though, that future presidents will have similar agendas. And Senator Machin, one of the holdouts against the legislation, will not be around forever.

Thus, PLUG is worth a buy if you believe hydrogen power is the way forward for manufacturing and commercial trucking. And if the tides turn soon on the legislation front, this could very well be the case.

The post Plug Power Stock Forecast appeared first on Investment U.

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Author: Bob Haegele

Energy & Critical Metals

Eagle Bay Advisors LLC Boosts Position in Brookfield Asset Management Inc. (NYSE:BAM)

Eagle Bay Advisors LLC grew its holdings in shares of Brookfield Asset Management Inc. (NYSE:BAM) (TSE:BAM.A) by 161.9% during the 3rd quarter, Holdings…

Eagle Bay Advisors LLC grew its holdings in shares of Brookfield Asset Management Inc. (NYSE:BAM) (TSE:BAM.A) by 161.9% during the 3rd quarter, Holdings Channel.com reports. The institutional investor owned 4,846 shares of the financial services provider’s stock after acquiring an additional 2,996 shares during the quarter. Eagle Bay Advisors LLC’s holdings in Brookfield Asset Management were worth $258,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds have also bought and sold shares of BAM. Strategic Blueprint LLC purchased a new position in shares of Brookfield Asset Management during the second quarter valued at approximately $36,000. Delta Asset Management LLC TN increased its stake in shares of Brookfield Asset Management by 226.9% during the third quarter. Delta Asset Management LLC TN now owns 899 shares of the financial services provider’s stock valued at $48,000 after buying an additional 624 shares during the period. Huntington National Bank increased its stake in shares of Brookfield Asset Management by 134,100.0% during the third quarter. Huntington National Bank now owns 1,342 shares of the financial services provider’s stock valued at $72,000 after buying an additional 1,341 shares during the period. JNBA Financial Advisors boosted its position in shares of Brookfield Asset Management by 87.4% during the third quarter. JNBA Financial Advisors now owns 1,876 shares of the financial services provider’s stock valued at $100,000 after purchasing an additional 875 shares in the last quarter. Finally, SG Americas Securities LLC bought a new stake in shares of Brookfield Asset Management during the second quarter valued at approximately $101,000. 59.95% of the stock is currently owned by hedge funds and other institutional investors.

BAM has been the topic of several research reports. Deutsche Bank Aktiengesellschaft dropped their price target on Brookfield Asset Management from $62.00 to $59.00 in a research report on Thursday, January 13th. Citigroup lowered Brookfield Asset Management from a “buy” rating to a “neutral” rating and dropped their price target for the company from $68.50 to $61.00 in a research report on Wednesday. Credit Suisse Group lifted their price target on Brookfield Asset Management from $54.00 to $63.00 and gave the company a “neutral” rating in a research report on Wednesday, November 10th. Zacks Investment Research downgraded Brookfield Asset Management from a “buy” rating to a “hold” rating in a report on Friday, October 15th. Finally, TD Securities boosted their target price on Brookfield Asset Management from $71.00 to $72.00 and gave the stock an “action list buy” rating in a report on Monday, November 8th. Four equities research analysts have rated the stock with a hold rating, six have assigned a buy rating and one has issued a strong buy rating to the company. According to data from MarketBeat, the stock has a consensus rating of “Buy” and an average price target of $64.40.

Brookfield Asset Management stock opened at $52.28 on Friday. The stock has a market cap of $85.77 billion, a PE ratio of 24.54 and a beta of 1.30. The company has a debt-to-equity ratio of 1.31, a quick ratio of 0.82 and a current ratio of 1.00. Brookfield Asset Management Inc. has a one year low of $38.36 and a one year high of $62.20. The stock has a fifty day moving average of $57.68 and a 200 day moving average of $56.69.

Brookfield Asset Management (NYSE:BAM) (TSE:BAM.A) last posted its quarterly earnings data on Wednesday, November 10th. The financial services provider reported $0.47 EPS for the quarter, missing analysts’ consensus estimates of $0.92 by ($0.45). The firm had revenue of $19.25 billion for the quarter. Brookfield Asset Management had a net margin of 4.91% and a return on equity of 2.90%. During the same period in the previous year, the business posted $0.65 EPS.

The company also recently disclosed a quarterly dividend, which was paid on Friday, December 31st. Investors of record on Tuesday, November 30th were given a dividend of $0.13 per share. This represents a $0.52 dividend on an annualized basis and a yield of 0.99%. The ex-dividend date was Monday, November 29th. Brookfield Asset Management’s dividend payout ratio (DPR) is presently 24.41%.

Brookfield Asset Management Company Profile

Brookfield Asset Management, Inc engages in the management of public and private investment products and services for institutional and retail clients. It operates through the following segments: Asset Management, Real Estate, Renewable Power, Infrastructure, Private Equity, Residential Development, and Corporate Activities.

See Also: LIBOR

Want to see what other hedge funds are holding BAM? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Brookfield Asset Management Inc. (NYSE:BAM) (TSE:BAM.A).

Institutional Ownership by Quarter for Brookfield Asset Management (NYSE:BAM)

The post Eagle Bay Advisors LLC Boosts Position in Brookfield Asset Management Inc. (NYSE:BAM) appeared first on ETF Daily News.

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Energy & Critical Metals

Putin Has The Power To Intensify Europe’s Energy Crisis

Putin Has The Power To Intensify Europe’s Energy Crisis

By Haley Zaremba of OilPrice.com,

Summary

Europe’s energy crisis has already…

Putin Has The Power To Intensify Europe’s Energy Crisis

By Haley Zaremba of OilPrice.com,

Summary

  • Europe’s energy crisis has already cost governments tens of billions of dollars and a looming confrontation with Russia would only make that worse.

  • European households are already set to see a 54% increase in the cost of gas and electricity despite the best efforts by governments to keep prices down

  • Russia provides about 40% of Europe’s natural gas, and if Russia does invade Ukraine and European governments respond with sanctions, there is a chance that supply could be cut off

    Europe’s energy crunch is intensifying even as governments across the continent struggle to stop the crisis through stop-gap policy measures and subsidies. The past year has seen a stunning 330% surge in gas prices across European markets, hitting consumers extremely hard at the same time that the global economy is attempting to recover from and adapt to the ongoing novel coronavirus pandemic. To date, European governments have been largely helpless to stop skyrocketing inflation. The forces they are up against – economic, health, and political – far outgun the abilities of the European Union. 

    So far European leaders “have spent tens of billions of euros trying to shield consumers from record-high energy prices, and themselves from voters’ wrath” according to reporting and analysis by Reuters, but the efforts are going to fall far, far short of the economic fallout continuing to batter European consumers. “BofA analysts estimate the average western European households spent around 1,200 euros ($1,370) a year on gas and electricity in 2020,” Reuters writes. “Based on current wholesale prices, they estimate this will rise by 54% to 1,850 euros.”

    Efforts to protect consumers and impose damage control on energy markets have included removing VAT taxes on home energy bills, sending relief directly to impoverished households, and, in some cases, staking moratoriums on crypto-currency mining, a remarkably energy-intensive practice that is sapping many Eastern European energy grids dry as miners capitalize on subsidized energy costs in poor countries including Kazakhstan and Kosovo. However, these measures don’t hold a candle to the crisis continuing to unfold. “Measures announced so far in western Europe will only cover about a quarter of the price rises on average,” Harry Wyburd, European utilities analyst at Bank of America Securities, was quoted by Reuters.

    With inadequate policy power to combat the crisis and increasing geopolitical tensions in the region, the crisis is set to get much, much worse. Ubiquitous supply chain woes continue to disrupt the energy sector and render supplies unable to keep up with demand. Furthermore, geopolitics are making the situation worse as oil-rich Russia tightens its grip on Europe as the continent becomes increasingly dependent on the Kremlin to keep the lights on. Russia provides around 40% of Europe’s natural gas and over 50% of Germany’s. It has been speculated that Russian President Vladimir Putin is refusing to open the taps and meet Europe’s need for natural gas because of the leveraging power it gives Moscow to further their interests and push through initiatives such as the Nord Stream 2 pipeline.

    The pipeline, which would pump Russian liquefied natural gas straight to Germany, bypassing Ukraine entirely by way of the Baltic Sea, is a point of major geopolitical tensions, as many in the west think that it would give the Kremlin far too much power over European markets, increasing Russia’s already prodigious political sway in the region. While the pipeline is already under construction, Moscow is waiting on the greenlight from Berlin to bring it online. Berlin, however, is under severe pressure to hold off on the project and avoid kowtowing to Russia, especially at a time when the nation’s aggression is becoming worryingly unchecked and an invasion of Ukraine is on the cards. 

    The potential coup brewing presents a major energy security threat to Europe at a time that the energy economy is already in crisis. “Should Russia choose to cut off the supplies in the middle of winter in response to the imposition of Ukraine-related sanctions, energy costs would skyrocket and millions could shiver amid power outages,” Axios reported on Monday in an article titled “Europe’s energy reliance on Russia is a crucial shield for Putin.” If this supply cut-off does indeed come to pass in retaliation to sanctions being threatened by world leaders including United States President Joe Biden, Goldman Sachs projects that the conflict could curb gas supply to Europe indefinitely

    Tyler Durden
    Fri, 01/28/2022 – 05:00



    Author: Tyler Durden

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    Precious Metals

    The Mining Companies Leading the Way in ESG

    Fortescue Metals and Boliden are among the companies best positioned to take advantage of future ESG disruption in the mining industry…

    Fortescue Metals and Boliden are among the companies best positioned to take advantage of future ESG disruption in the mining industry, our analysis shows.

    The assessment comes from GlobalData’s Thematic Research ecosystem, which ranks companies on a scale of one to five based on their likelihood to tackle challenges like ESG and emerge as long-term winners of the mining sector.

    According to our analysis, Fortescue Metals, Boliden, Gold Fields, Teck Resources, Polyus, Kirkland Lake gold, Polymetal International, and AngloGold Ashanti are the companies best positioned to benefit from investments in ESG, all of them recording scores of five out of five in GlobalData’s Mining Thematic Scorecard.

     

    The table below shows how GlobalData analysts scored the biggest companies in the mining industry on their ESG performance, as well as the number of new ESG jobs, deals, patents, and mentions in company reports since January 2021.

     

    The final column in the table represents the overall score given to that company when it comes to their current ESG position relative to their peers. A score of five indicates that a company is a dominant player in this space, while companies that score less than three are vulnerable to being left behind. These can be read fairly straightforwardly.

    The other datapoints in the table are more nuanced, showcasing recent ESG investment across a range of areas over the past year. These metrics give an indication of whether ESG is at the top of executives’ minds now, but high numbers in these fields are just as likely to represent desperate attempts to catch-up as they are genuine strength in ESG.

    For example, a high number of mentions of ESG in quarterly company filings could indicate either the company is reaping the rewards of previous investments, or it needs to invest more to catch up with the rest of the industry. Similarly, a high number of deals could indicate that a company is dominating the market, or that it is using mergers and acquisitions to fill in gaps in its offering.

     

    This article is based on GlobalData research figures as of 21 January 2022. For more up-to-date figures, check the GlobalData website.

     

    The post Revealed: The mining companies leading the way in ESG appeared first on Mining Technology.

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