A Story Of Two Hyzons
Nice Ones, it was the very best of instances. It was the worst of instances.
It was the age of in-line earnings. It was the age of earnings misses. It was the epoch of hovering income. It was the epoch of missed income. It was the season of progress. It was the season of withering.
For hydrogen fuel-cell powertrain producer Hyzon Motors (Nasdaq: HYZN), it was all of these items, apparently. As is typical with Wall Avenue, it simply is determined by whom you ask…
This morning, Hyzon launched its fiscal fourth-quarter report, and HYZN inventory is taking a beating.
Now, initially, Nice Stuff Picks readers: Don’t Panic.
I want I may emboss that in giant gold letters on the entrance of Nice Stuff’s cowl … identical to The Hitchhiker’s Information to the Galaxy.
The remainder of the market has been extremely prone to panic-selling recently, and I don’t need that to be you.
Let’s take a look at the place the confusion is coming from with Hyzon Motors.
First, the numbers:
• Per-share earnings: Lack of $0.12 versus a lack of $0.08 final 12 months.
• Income: $5.09 million versus $0 in income final 12 months.
You’ll discover that I didn’t embody “expectations” in these bullet factors like I often do. That’s as a result of “expectations” are a bit up within the air.
As an illustration, In search of Alpha stories that Hyzon missed earnings expectations by $0.05 per share. Elsewhere, MarketWatch stories that Hyzon missed by simply $0.01 per share. Lastly, StreetInsider stories that Hyzon really matched earnings expectations.
Then we have now income. In search of Alpha says income missed by $23.26 million. MarketWatch says Hyzon’s income missed by $16.3 million, and StreetInsider didn’t even give a income estimate.
Can y’all simply get your $#!t collectively, please?
The issue with following analysts on bleeding-edge, disruptive corporations like Hyzon Motors is that hardly anybody covers the inventory. Yahoo Finance stories that solely seven analysts have bothered to challenge rankings or value targets on Hyzon. I’d wager even fewer bothered to challenge earnings expectations.
In different phrases, HYZN inventory is falling right now as a result of a handful (and that’s being beneficiant) of analysts set their targets increased than the corporate forecast.
On condition that solely seven analysts observe Hyzon shares, and that fewer than that possible issued earnings estimates, HYZN might be down as a result of Invoice over at WeAreAnalystRatings nonetheless thinks in regards to the Hindenburg when he thinks of hydrogen … or one thing like that.
So, what … Mr. Nice Stuff? Are you saying we should always simply ignore analysts all collectively and simply hearken to you? Pshaw … proper.
No. I’m telling you to take a look at the numbers! (The numbers, Mason! What do they imply?!)
Final 12 months, Hyzon had no income in any respect. Now it has $5.09 million in income for the fourth quarter. That’s progress in a hydrogen market lots of people — even some Nice Ones — don’t suppose exists.
What’s extra, as a result of Hyzon continues to be rising, the corporate now has a backlog of $287 million. That’s up a whopping 246% from Hyzon’s final orders replace in July 2021.
Moreover, Hyzon mentioned it delivered 87 fuel-cell electrical autos (EVs) final 12 months … topping each Hyzon’s and analysts’ expectations.
And this 12 months? This 12 months, Hyzon sees deliveries skyrocketing three- to four-fold, with 300 to 400 fuel-cell EVs to be delivered within the latter half of 2022.
Moreover, Hyzon is rolling out 10 to fifteen fuel-cell vehicles for demonstration deployments within the U.S. and will start manufacturing of its flagship hydrogen gas cells in the usA.
“Made In The usA.” hydrogen gas cells. How do you want them apples?
And if all that wasn’t sufficient, Hyzon is ramping up deliveries and streamlining meeting processes for abroad clients in Europe, Australia and China.
That’s the place that $78.5 million in R&D operations prices went final quarter. It’s a bit factor we wish to name “progress.” And contemplating that Hyzon had no income within the 12 months prior, and $5.09 million within the fourth quarter … Hyzon spending cash to earn money is working.
So, Nice Ones, if y’all need to hearken to Invoice over at WeAreAnalystRatings and promote your HYZN inventory or keep away from it altogether, that’s wonderful. It’s your cash, I don’t should inform you what to do with it, and also you don’t should pay attention.
I’ve to confess that I’ve been tempted to promote HYZN inventory out of the Nice Stuff Picks portfolio … however solely in order that I may purchase the shares myself.
You see, the SEC gained’t let me personal any of the shares I like to recommend. So, I’m not pumping HYZN for my very own good. I don’t play these video games.
No, Nice Stuff Picks will proceed to carry HYZN inventory with robust, hydrogen-powered palms. Heck, at these costs, you must most likely add to your HYZN place.
In any case, even Wall Avenue is aware of that Hyzon has potential past what analysts singled out within the firm’s quarterly report. HYZN inventory was down greater than 14% in premarket buying and selling, however the shares closed solidly within the inexperienced by the tip of the day.
Maintain holding, Nice Ones. Hyzon Motors is gonna be large.
Are you saying … to infinity and Hyzon?
Properly, sure … however test this out too: My colleague Adam O’Dell’s speaking a few tiny Silicon Valley agency that makes use of AI to crack open the most important untapped vitality supply on the planet…
Not oil, fuel, wind, photo voltaic, hydro, nuclear … or something you’ve possible heard about earlier than. But this breakthrough is about to assist launch an period of low-cost, plentiful electrical energy the likes of which the world has by no means seen.
Longtime Nice Stuff Decide Nvidia (Nasdaq: NVDA) simply introduced a brand new lineup of super-fast laptop chips that may pace up AI algorithms utilized in knowledge facilities — a extremely profitable a part of the corporate’s general enterprise.
Nvidia was already nuking its competitors within the high-powered, deep-learning AI market. However these new chips — together with the event of recent supercomputer “Eos” — will put it that rather more forward of rival Intel (Nasdaq: INTC). As if Intel wanted any extra nails in its chipmaking coffin…
Talking of chips, Paul Mampilly says so-called “secure” blue-chip shares are heading for the hazard zone — and solely a small variety of corporations will come out on high following this current market unrest.
For an entire checklist of corporations Paul’s at present avoiding, click on proper right here.
This morning, blissful little camper constructor Winnebago (NYSE: WGO) delivered a mighty wonderful earnings report that confirmed income up 39% 12 months over 12 months and diluted earnings per share up 42% from 2021.
Outdoorsy individuals all over the place proceed to park their cash in Winnebago’s RVs, providing traders an off-road entry into part of the journey business not as affected by COVID. I imply … provide chain points and manufacturing supplies apart.
In actual fact, value inflation was traders’ solely actual concern in an in any other case stellar earnings report. This might clarify why WGO inventory idled within the purple right now as an alternative of zooming increased, as was properly deserved.
For all its Photoshop wizardry, Adobe (Nasdaq: ADBE) most likely may’ve masked its tepid long-term outlook a bit higher in its current earnings report.
Whereas Adobe introduced quarterly earnings that beat Wall Avenue’s expectations by $0.03 per share, the corporate’s calling for a possible income slowdown later within the 12 months because of “rising competitors” and a “slower digital advertising and marketing spending backdrop.”
Traders weren’t solely certain find out how to take that final bit. However like an image whose background doesn’t fairly line up, Adobe’s angle set off alarm bells, inflicting its inventory to dip 7%.
It’s a dank day for a weed wedding ceremony, Nice Ones. It’s an excellent day to … purchase agaaaain!
Canadian hashish firm Cresco Labs (OTC: CRLBF) simply confirmed it’s shopping for bud buddy Columbia Care (OTC: CCHWF) for $2 billion in a transfer that may make Cresco’s hashish kingdom one of many largest within the U.S.
Notably, the businesses are aiming for annual income of $100 million or extra in eight states by 2023 — branching out of their main market positions in Illinois, Pennsylvania, Colorado and Virginia.
Makes me hopeful they’ll jump over to Kentucky someday quickly … , for science. Each Cresco and Columbia’s inventory costs fell fractionally decrease on the information.
Hyzon earnings and a brand new Ballot of the Week? On the identical day?! What a time to be a Nice One!
Right here within the thick of earnings season, we frequently get so caught up in how “analysts count on this” and “Wall Avenue needed that,” we neglect to even ask … who’re these analysts that corporations try so onerous to impress, hmm?
And does anybody really care about what these Wall Avenue randos count on out of company earnings season?
I imply, certain you may need some Wall Avenue analysts making an attempt to impress nonetheless different analysts in an ever-changing sport of one-upmanship and chest-thumping of who will be extra bullish or bearish. It’s like maintaining with a cleaning soap opera however with extra numbers and SEC rules.
However for traders such as you and me? What distinction does it make if some company bean counter tells us to purchase, promote or maintain sure shares?
A bit on the nihilistic facet right now, I see.
This isn’t all hypothetical, by the best way … I really need to know should you observe Wall Avenue analysts’ recommendation in your private, day-to-day investments.
So, click on beneath and let me know:
When you’re accomplished answering the brand new ballot, collect ‘spherical for the outcomes from final week’s ballot!
With Chinese language shares caught in that revolving door of “to delist or to not delist,” we needed to know if any of you continue to personal Chinese language shares.
Solely 38.7% of y’all are investing within the Center Kingdom, whereas one other 55.9% of you mentioned you’re avoiding Chinese language shares in the interim. Then there are the 5.4% of Nice Ones having second ideas about avoiding Chinese language shares up to now.
Received a unique spin on the Chinese language delisting spree? Have to vent in regards to the present market climes? Able to rant about analysts’ expectations for Friday Suggestions? Hit me up within the inbox!
GreatStuffToday@BanyanHill.com is the place you may attain us greatest. And should you’re nonetheless nonetheless itching for extra of that Nice Stuff, first see a physician about that (I fear about y’all typically).
Then, meet up with us all throughout the interwebs:
Till subsequent time, keep Nice!
Editor, Nice Stuff