Originally published on 2nd of September  2022

ESGFIRE returns since 2018: + 1200 %
ESGFIRE returns year to date 2022: +15 %
NASDAQ returns year to date 2022: – 25 %

 

Portfolio Update

We are pleased to announced that we have seen SUBSTANTIAL progress for many of our non public investments with several 100 % gains in recent re-evaluations which is very promising for the ESGFIRE portfolio.  We have not included these gains in our portfolio statistics as they are yet to be materialized. More information below.

The ESGFIRE portfolio has used some of its liquidity to purchase stocks in new positions which we will present below. We have also sold many of our old positions for various reasons . In the current market we still think it is extremely important for investors in high growth companies to pick stocks that have a well funded business as capital markets are becoming harsher due to fears of recession and also to try and avoid companies that have no clear path to profitability and/or substantial revenues.

 

Current ESGFIRE portfolio with Monthly performance for August 2022.

Absolicon – Down 15 %
Market comment:
We were dissapointed not to see any sales by Absolicon during the first two quarters of 2022 however the company did release a bunch of statements updating the market on how their projects are progressing, we just published an interview with the CEO which can be read HERE. All projects appear to be moving forward and we expect to see them close one or more deals before the end of 2022. Absolicon have signed in total 18 framework agreements and totals a sales pipeline exceeding $120 MUSD. We are waiting for the first framework agreement to materialize which alone should produce one off revenues of 4-5 MUSD and recurrent revenue of 3-4 MUSD annually. We expect even more massive interest for Absolicon’s solutions following the European Union ambitions to speed up its energy dependance of Russian fossile fuels.

Char Technologies – Down 3 %
Market comment:
Char Technologies recently finished a private placement which gave them gross proceeds of C $4,894,881. The company’s stock has gone down close to 50 % YTD , this downward spiral is likely due to a change of sentiment for growth stocks.  Char has a sales pipeline of about 100 MUSD and it should become to materialize into sharp deals within a not too distant future. One challenging aspect for the company is that they require a big ratio of equity for projects, a new way of debt financing would increase their potential leverage.

 

Earthrenew – Up 3 %
Market comment:
The ESGFIRE portfolio got smacked for buying more stocks at 30 cents just as the company announced a new private placement. Earthrenew has impressed us with great financials and also the launch of their new processing facility Beiseker.  Fundamentals are very sound with increasing revenues. The company expects revenues of 27- 30 MCAD for 2022 and we would be surprised if revenues for 2023 did not exceed 50 MCAD.

Lion E-mobility – Down 4 %
Market comment:
The company recently impressed us with a HUGE order for 2022 that was 48 million euro in size, much larger than their current market cap. The current harsh climate for micro caps is clearly visible since the big order was not permanently reflected in a higher share price. The chairman of Lion E-mobility also recently invested a large sum of money into the company to finance their expansion which we view as a very bullish sign. Lion E mobility recently announced an impressive battery cooperation which should generate revenues. The company is keeping shareholders regularly updated with investor events which we find reassuring. The company has also finished the deal with BMW for their own serial production of batteries.

 

Vicinity Motor Corp –Down 2 %
Market comment:
Vicinity Motors is  still getting punished by the market heavily despite good news of new distributors. Vicinity Motors shocked the market with a capital raise that sent the stock down with more than 26 % on a single trading day in March. We think that event was a mix of overreaction and punishment for the management’s decision not to let current shareholders participate in the financing. However The company recently received analyst coverage from Catalyst research and Spartan capital indicating 15-32 CAD as a price target constituting extremely large upside from current levels.

 

Envirometal – Down 27 %
Market comment:
EnviroMetal Technologies Inc. is developing and commercializing economic and environmentally sustainable metal recovery technologies for applications in the primary and secondary metal industries. EnviroMetal extracts precious metals from ores, concentrates and E-Waste by deploying its proprietary non-cyanide, water-based and neutral pH treatment process. Extensive analysis by ESGFIRE is coming shortly! The company stock has been hit big time by the massive market sell off which we think is an overreaction.

Fusion Fuel – Up 5 %
Market comment:
We recommend everyone interested to read the management discussion from the latest report which contains some very interesting information. There are many interesting projects which we think could give positive catalysts for this stock in the coming months. However currently the stock has been hit hard by the massive market selloff.
FUSION-FUEL’s mission is to provide the world with innovative green hydrogen solutions that accelerate the transformation of the global energy sector and enable the sustainable reduction of carbon emissions.FUSION-FUEL has developed a revolutionary new electrolyzer design – the HEVO – that will allow them to produce hydrogen using renewable  energy at highly competitive costs without any associated carbon emissions.

Compleo Charging Solutions – Down 4 %
Market comment:
Compleo Charging solutions has so far not announced any problems with supply chain issues due to covid lockdowns in China and we hope that this will remain the case however it’s a risk that needs to be considered as it could slow down revenue growth..  They are expecting to deliver 150-160 MEURO in sales for 2022. The company is growing fast both organically and through acquisition. The company recently stated they aim to turnover half a billion Euro by 2025. More can be read under the Compleo corporate page. The stock price of Compleo has been hit very hard and is down 72 % so far during 2022. The company recently announced they had received a payment of 45 million euros from E.ON related to a recent acquisition. This payment along the current cash position makes us very confident that the company will be able to stay afloat until they turn cashflow positive or close to this stage.

GCM Mining – Down 12 %
We expect the company to get new ratings once the announced merger is done with Aris Gold which combined gives a very interesting company mix. We think the management team of GCM is extremely strong and we have chosen a hedge position in this gold miner due to the unstable macro picture globally as well as increasing inflation which also is a global issue. Gold miners tend to do well in high inflationary environments. ESGFIRE is fully aware this might not be the ultimate ESG choice and may not suit all our audienc but we have to adjust the portfolio according to the global  investment outlook . The ESG Rating of this position may be found HERE.

Sold positions

Hydrogenpro

Following a short term profit of over 100 % we have decided to exit Hydrogenpro and place our money in their competitor HTOO instead.

Leading Edge Materials

The company is still far from revenues and with their CEO stepping down we think the climate for this company will be harsh during this fall.

Aduro Clean Technologies

The company is progressing slower than anticipated and we have decided to exit our position since we have found better risk / reward in other positions.

Temporarily sold positions

Bavarian Nordic
We were stopp lossed out of our position as we announced on 1st of september 2022.
We are looking to re enter once we see some technical strength. We are also closely following what happens with the Monkeypox case growth as schools start to reopen.

Desert Control
The company has had little news lately and since their revenues are yet small and the valuation currently is 9,5 X sales for 2022 and 3,5 X sales for 2023 we have decided to stay on the sidelines for a while to evaluate which direction the company is taking.

NEW POSITIONS

Clean motion
Market cap: 8 MUSD
Ticker: Clemo
Listing: First North
Peers:
AYRO Market cap: 31 MUSD
Inzile Market cap: 71 MUSD
This small Swedish company has a hyper interesting last mile delivery vehicle. There are several peers valued at 10-20 X the market cap of Clean Motion, one for example is Inzile. The company are expecting orders in the coming Q3  and Q4 of 2022 for their new last mile delivery vehicle which has solar cells on the roof and charges itself! The company currently has capacity for 500 vehicles per year which implies 5-6 MUSD revenues per year however the plan is to scale this up to 5000 vehicles per year before the end of 2023 which equals roughly 50-60 MUSD per year.
We hope to be able to give more information on this company within shortly.

Landi Renzo
Market cap: 120 MEUR
This hydrogen and RNG mobility company is set for massive growth and is extremly undervalued with more than 100 % upside.
We recommend you read THIS analysis on the company for more information

 
IPO positions
We have a number of positions in unlisted companies which we anticipate will go public through initial public offerings within the next 6-18 months.

Evanesce packaging solutions
Website: https://evanesce.com/
About:
As a sustainable technology innovator,Evansesce is revolutionizing sustainable packaging with 100% compostable and affordable plant-based solutions.
IPO Status:
Our latest information on valuations imply Evanesce could be valued at 200-300 MCAD. ESGFIRE and those of our readers who invested in the company entered at a valuation of 30 MCAD implying a likely 10 X upside to our initial investment.. The company is likely going public in the first quarter of 2023 on one of the Canadian stock exchanges.

Captico2
Website:
https://captico2.com/
About:
The vision of Captico2 is to be the world leading in offering high impact Carbon Capture Utilisation and Storage technologies (CCUS). Captico2 can capture mineralize and transform carbon dioxide into a valuable and sellable commodity in less than 60 seconds. The company aims to pre-sell 10 full scale units in 2022 creating potential revenues of 160 million EUR.
IPO status:
Captico2 is about to close their current 10 MUSD financing which will enable them to proceed with their TRL 7 testing. After the TRL 7  is finished they have a written order of 10 units totalling 160 million EURO with a possible EBITDA profit of 50  %. Our calculations imply that the investment could render a wooping 20-35 X our initial investment if things go according to plan based on a 10 X EBITDA projection for the single order mentioned above.

Ola Media
Website: https://www.olamedia.mx/
About:
OLA MEDIA is a network of interactive touch screens located exclusively in the backseat of Ubers. By leveraging innovative technologies and captivating spaces, they help brands create engaging experiences with a high value audience.
IPO status:
Ola Media is currently closing a capital round which implies a 500 % upside for our initial investment. The company is likely going public during the second quarter of 2022 at either Canadian exchanges or NASDAQ.

Alchemy
Website: https://alchemynano.com/en/
About:
Alchemy is developing innovative nanocoating solutions to the challenges faced by many industries. Their coatings are designed to repel water, dirt, and ice while maintaining the high transparency, mechanical durability, and weatherability specifications for advanced sensor systems used in harsh environments. The company has a deal with the Canadian army and this may be further increased during this fall which could imply a 3-5 X valuation of our initial investment.
IPO status: Most likely going public by Q3 -Q4 of 2022 .

Legal Disclaimer
The stock price development above was calculated by taking the opening price at the first day of august and the closing price at the last day of august.

We own shares of these companies personally.

Investing in stocks is combined with certain risks and it is possible to lose your entire investment. Our posts are made for Educational purposes only and are not to be interpreted as tips , financial advice or recommendations of any kind to either buy or sell any stocks.
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