December 8, 2021

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Lowers bets on Nel landslide after stock jump - E24

Lowers bets on Nel landslide after stock jump – E24

Several funds covered portions of short positions after Neil’s share surged nearly 70 percent from its bottom in October.

Turnaround: Nel’s stock is up 12 to nearly 20 crowns since its October low, but is still down 31 percent since the start of the year.

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The price hike caused significant paper losses for funds that had invested in the hydrogen share prices falling.

In line with the price hike, positions have been reduced, Finanstilsynet listings show.

There are now eight international funds with short positions of 118 million shares. This corresponds to just over eight percent of the total number of shares outstanding.

The share was thus reduced from around 10 per cent to the maximum in October.

Neil continues to be the stock with the biggest selling. This has been the situation since last spring, when the stock fell sharply along with many other green stocks.

Several funds that were short covered some positions:

  • Marshall Weiss Fund, a London-based hedge fund, last month reduced its short holdings from 1.31 to 0.79 percent of outstanding shares.
  • JPMorgan Asset Management cut the stake from 0.77 in October to 0.53 percent.
  • And the Paris-based Capital Fund Management decreased from 1.28 percent at the end of last month to 1.07 percent.
  • British hedge fund Odey Asset Management rose from 1.84 percent to 1.14 percent
  • However, Helikon Investments, which is also a London-based hedge fund, has steadily boosted its position, most recently last week from 2.3 to 2.42 per cent.

brought in steep arrows

Neil’s share has recently absorbed some of the downturn this year. The hydrogen company fell sharply in the stock market, as did a number of alleged green growth stocks after the new year.

But in October, the average return of 64 stocks in the class of green growth stocks was 17 percent, according to investment manager Robert Ness.

Read on E24 +

Buy Neal, if you dare to believe in the company

In the analyst’s view, Neil’s rise was explained in part by covering short positions, but also by the fact that the Glasgow Climate Summit is giving increased interest to companies focusing on solar, wind and hydrogen.

Nel produces hydrogen filling stations and the company also manufactures electrolyzers, which use electricity to separate hydrogen from water. The stake has long been popular with small Norwegian and German savers.

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Neal’s potential profits lie in the future. Analysts expect the company to incur an after-tax loss of 1.22 billion this year and a loss of 414 million next year, according to Bloomberg estimates.

Last year, when interest in green stocks was huge and prices soared, the short stake was small.

But when Neal’s price fell in the spring, the bets were up. At most, the largest short positions were close to ten percent of the company’s shareholding.

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At the same time, many brokerages were negative on the stock, in part due to the higher prices.

According to data from Infront, there is still a predominance of analysts recommending the stock.

The overview shows that out of the 17 analysts following the stock, ten have a buy rating, two have a hold rating and five have a sell rating.

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