Originally published on November 3 , 2022
ESGFIRE returns since 2018: + 1200 %
ESGFIRE returns year to date 2022: + 5 %
NASDAQ returns year to date 2022: – 33.53 %
Portfolio Update short summary for October
October was unfortunately yet another though month for most of our listed holdings which decreased slightly overall in value . We have not included the gains from our non public positions in our portfolio statistics as they are yet to be materialized.
The publicly traded side of the ESGFIRE portfolio currenty is 100 % invested at the moment. We have sold Envirometal and Aris Mining corp and added Clean industry solitions Hold.
In the current market we 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 October 2022.
Absolicon – Down 8 %
Absolicon reported in late September that they had received a down payment of 1 million sek (90 000 USD) for a production line to France . We were positively surprised by this as we did not expect this market to be so close to ordering a production line. Yet we have still to see the conmpany present any actual frame work agreements becoming real orders which is a frustrating waiting game.
ESGFIRE recently published an interview with the CEO which can be read HERE. All projects appear to be moving forward and we hope to see Absolicon 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. Undoubtably Absolicon has tailwind right now thanks to the ambitious plan of the European Union to become carbon neutral by 2050.
Char Technologies – No change
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 hopefully 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 – No Change
Earthrenew is valued at less than 0,5 X sales for 2022 and we would not be surprised to see the company even turn a small profit on EBITDA level for this year . The ESGFIRE portfolio got smacked for buying more stocks at 30 cents just as the company announced a new private placement. . 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 43 MCAD according to their latest investor presentation.
Lion E-mobility – Up 9 %%
The company has 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 ($6MUSD) 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 –Up 30 %
Vicinity Motors had a great month where they announced a huge order of $100 million USD.
The backlog for the company now is over $200 million USD. We have purchased more shares of the company due the positive tailwinds. The company should be able to perform an EBIT margin of 15-20 % long term.
Fusion Fuel – Down 20 %
Have reported several big contracts during the latest months However sadly ,and surprising to us, this contract did not contribute anything in the positive direction of the share price. It did however strengthen our belief in the investment case! 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.
Compleo Charging Solutions – Down 14 %
There is big turbulence in Compleo. Bigger shorting positions, market doubts about profitability and management changes due to differing opinions have shaken the company to the ground We recently wrote a post about the current situation compleo which can be found here: We are currently down about 75 % in our position and we have been thaught a valuable lesson that one turbulent event is more often than not followed by more turbulent events.
Norditek Group – Up 17 %
Norditek is a profitable clean tech company active in the mobile recycling industry. They sell, lease or rent sorting plants and inhouse made machines and in this way they recycle materials into sellable products. They mainly handle and recycle materials from construction sites. The company currently according to our estimates (input given from external analyst) is trading at a Price to Earnings ratio (P/E) of 10.3 and given that the company aims to grow at a pace of 15 % per year we think this is tremendously undervalued. We hope to be able to give our readers an extensive analysis of this company in the coming months.
Clean motion – Down 10 %
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. The stock has had some recent downward pressure to do an options offering where the redemption price was 1,47 SEK.
Landi Renzo – Up 10 %
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
We have chosen to sell this position due to the worrying financing situation for the company. We will await possible solutions for the company to find more working capital before possiblt reentering.
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. We may re enter our position.
Aris mining Corp
The valuation of Aris is still compelling but we have identified more attractive alternatives in the ESG sector.
Clean industry solutions Holdings
Listing: First North Stockholm
Clean Industry Solutions Holding Europe AB invests in companies that provide solutions for sustainable industry and a circular economy. The two subsidiaries, Industrial Solar GmbH and SolarSpring GmbH, offer solutions for the supply of clean energy and clean water for industry. The company is very attractively valued and we see great upside potential as soon as the dust settles after their latest public offering.
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
As a sustainable technology innovator,Evansesce is revolutionizing sustainable packaging with 100% compostable and affordable plant-based solutions.
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 or second quarter of 2023 on one of the Canadian stock exchanges.
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.
Captico2 is currently negotiating a 10 MUSD Series A financing which will enable them to proceed with their TRL 7 testing. So far out of the 10 MUSD Series A 5 M USD has been comitted by Norwegian VC firm Valinor.After the TRL 7 is finished they have a written order of 10 units totalling 160 million MUSD 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 only for the single order mentioned above.
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.
Ola Media is currently closing a capital round which implies a 250 % upside for our initial investment. The company is likely going public during the second quarter of 2022 at either Canadian exchanges or NASDAQ.
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.
Most likely going public by Q3 -Q4 of 2022 .
The stock price development above was calculated by taking the opening price at the first day of the month and the closing price at the last day of the month.
We own shares of these companies personally.
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