Industry Blog

  • Green Stocks for 2021

    Last year saw sectors like electric vehicles and alternative energies soar amidst a global shift away from the reliance on fossil fuels. The industry received a further boost with the green-friendly Biden administration winning the election as part of the Democratic platform revolved around a $2 trillion commitment to the future of clean energy in America. After the breakout of industry leader Tesla (NASDAQ:TSLA), every automaker on Earth is coming out with electric vehicles to try and maintain their relevance in a new world where reliance on driving has been minimized by the COVID-19 pandemic. Let’s take a look at a few stocks that could surge (pardon the pun) in 2021.

    Plug Power (NASDAQ:PLUG)

    When we talk about the clean energy sector we often think strictly of electric vehicles, but Plug Power is a hydrogen fuel cell technology company that is getting a lot of attention in international markets. In the past couple of weeks Plug has secured deals with the SK Group in South Korea and Groupe Renault in Europe.

    The SK Group is one of Korea’s largest conglomerates and has a very real goal of six million fuel cell vehicles and over 1200 refilling stations by 2040. The Groupe Renault is one of Europe’s leading automakers and has tapped Plug to provide its hydrogen fuel cell technology for its commercial delivery vehicles, and plans on building a plant in France. The stock has responded by screaming to new all-time highs of $73.90 per share.

    Velodyne Lidar (NASDAQ:VLDR)

    We could have put any of the Lidar companies here because they all have a chance of breaking out, but Velodyne has an expanding portfolio of over 183 projects in its pipeline and a history of working with big names including Google, Microsoft, Caterpillar, Ford, Tencent, and Baidu. If you are not completely sure what Lidar is, it stands for Light Detection and Ranging. Think of it as a sophisticated way for lasers to map out environments and accurately calculate ranges. Why would this be of significance you may ask? Autonomous driving.

    The next frontier for the automotive industry has massive players like Tesla, Apple, and Ali Baba already deep into research and development. The key to much of this technology will be Lidar sensors and these companies have a chance to explode over the next few years.

    MP Materials Corp. (NYSE:MP)

    You may not have heard of this one yet but it is a relatively new company on the public markets. MP Materials is a pick and shovel play on the electric vehicle market as the company mines the rare-earth minerals that are crucial to the motors that charge electric vehicles, as well as larger machinery like solar wind turbines and even drones. The company represents 15% of the total rare earth minerals mined and is the largest such miner in North America. What does that mean?

    A substantial industry moat that should help solidify MP as one of the industry leaders, and as we move into the future and more rare-earth minerals are needed, the revenue growth should rise substantially. Investors may want to watch the volatility with this stock until it stabilizes as is normally the case with newly traded companies.

  • Coinbase IPO

    In what was one of the most anticipated public debuts from a company in recent memory, the largest American cryptocurrency exchange Coinbase (NASDAQ:COIN) began trading on the NASDAQ exchange on Wednesday. While the actual stock performance of Coinbase was slightly anti-climactic, the hype machine around the direct listing was at an all-time high. Shares began trading at an elevated price of $381.00 per share after the NASDAQ started the bidding at $250.00 per share pre-market. The stock eventually ran all the way up to an intraday high of $429.54, before a late afternoon sell-off saw Coinbase close its first trading session at $328.28, although there has been some significant buying of the dip in after-hours trading.

    Coinbase market cap $85 billion after the first trading day

    The closing price gave Coinbase an official market cap of just over $85 billion after its first day of trading, a price that rivals other tech giant debuts like Facebook (NASDAQ:FB), Alibaba (NYSE:BABA), and Shopify (NYSE:SHOP). How the stock performs from here is a mystery, but there are plenty of naysayers who believe that the valuation of Coinbase will forever be linked to the price of Bitcoin, as there is a direct correlation between Coinbase’s most recent quarterly revenue report of $1.8 billion and the surging all-time high price of the benchmark crypto.

    Coinbase starts trading on Wall Street
    While the actual stock performance of Coinbase was slightly anti-climactic, the hype machine around the direct listing was at an all-time high.

    But Bitcoin was not the only sympathy play that rose in anticipation of Coinbase’s debut as Ethereum and DogeCoin both blasted through to new all-time highs Tuesday night and into Wednesday’s market open. Cryptocurrencies have been rallying in 2021, buoyed by both the ongoing volatility of the broader securities markets, as well as the continued fear of inflation that is looming over the global economy.

    The aggregate market cap of all cryptocurrencies hit $2.2 trillion recently, with a majority of that being Bitcoin and Ethereum. Despite Bitcoin’s popularity as a store of value, Ethereum has hit mainstream headlines of late due to the importance of its Blockchain network. Of note, NFTs or non-fungible tokens mainly use the Ethereum network to digitally certify authenticity, which has turned investors on to the overall utility of Ethereum as an investment.

    Coinbase trading on Wall Street cements cryptocurrencies as a legitimate investment for the future

    Coinbase trading on Wall Street marks a significant step towards cementing cryptocurrencies as a legitimate investment for the future. While the suffix of currency is always a little misleading with coins like Bitcoin, the broader adoption of cryptos by mainstream financial companies has also added to the recent fervor. Companies like Square (NYSE:SQ), PayPal (NASDAQ:PYPL), Visa (NYSE:V), Mastercard (NYSE:MA), and Tesla (NASDAQ:TSLA) have all reported adding Bitcoin to their balance sheets both as enterprise investments and for use with customers.

    Where Coinbase ends up as a publicly-traded stock is anyone’s guess. The industry moat is questionable, as there are dozens of other crypto exchanges including the world’s largest in Binance, Kraken, BlockFi, Robinhood, and the Cash App. While future earnings reports will be thoroughly analyzed, there is no denying the impact that Bitcoin’s price will have on Coinbase’s revenues, and that alone may be enough volatility to scare away most investors.

  • Electric Vehicles, ACDC Stock

    Electric vehicles were one of the top performing sectors in 2020, and despite the recent growth sector correction, the industry is prime to be a disruptive force for the foreseeable future. There was a major shift in focus for the automotive industry led by perhaps the most disruptive company we have seen in decades: Tesla (NASDAQ:TSLA).

    The picture shows Tesla Model 3 electric vehicle
    Tesla Model 3

    The company, led by Elon Musk, has been relentless in pushing the electric car and sustainable energy for years now, but only recently has the rhetoric in the global auto industry followed suit. China remains perhaps the greatest threat to Tesla, with major brands like Nio (NYSE:NIO), XPeng (NYSE:XPEV), and Li Auto (NASDAQ:LI) all establishing themselves as forces to be reckoned with in the largest automobile market in the world.

    But as with most industries, there is an oversaturation near the top. There is a trickle-down effect that helps smaller companies become the pick and shovel brands for the top dogs. You don’t have to be an electric vehicle maker to take advantage and profit off of the trend. With electric cars comes the necessity for scalable infrastructure which includes repair centers, charging stations, and of course, batteries.

    The electric vehicles segment is big and is not only about luxury sedans — there is a lot more

    Much to the surprise of many, not every company wishes to make a luxury sedan either. There are plenty of companies that are in the electric vehicle business for things like busses, long-haul delivery semis, and smaller vehicles like golf carts, forklifts, and food delivery mobiles. Vancouver-based EV Battery Technologies Corp (CSE:ACDC) finds itself at the crossroads of electric vehicle batteries and state of the art charging technology.

    EV Battery Tech has also simultaneously launched two new technologies which include the brand new IoniX Pro Smart Charger, which will not only charge electric vehicles in less than 25 minutes, but will act as a store of power as well. But this isn’t just any power storage unit. The IoniX Pro will utilize machine learning and artificial intelligence to learn power management and peak charging times throughout the day in order to become more efficient.

    Electric Vehicles charger
    IoniX Pro Smart Charger

    The company also released its RV battery called the IoniX RV Freedom battery, which doubles as a portable power supply source when you are out in the wilderness. Other projects on the go for EV Battery Tech include the IoniX Pro TITAN Energy Core and a proposed Smart Wall that will introduce power storage within homes and buildings.

    At this point, you may be thinking that EV Battery Tech is just another trendy penny stock play on the trendiest industry, but the stock is receiving legitimate coverage including being added to the HAN-GINS Tech Megatrend Equal Weight ETF (LSE:ITEK). This fund includes other names you may have heard of including Vancouver-based Blockchain and Bitcoin miner Hive Blockchain (TSXV:HIVE), Tesla, Microsoft (NASDAQ:MSFT), Alphabet (NASDAQ:GOOGL), and Apple (NASDAQ:AAPL).

    The stock has already returned nearly 3,000% to investors over the past 52 weeks, and is poised to have a breakout year with multiple different industry tailwinds and projects in the works which the company estimates will provide total revenues of over $300 million over the next two years.

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