Originally published on 2nd of September 2022
ESGFIRE returns since 2018: + 1200 %
ESGFIRE returns year to date 2022: +10 %
NASDAQ returns year to date 2022: – 30,87 %
Portfolio Update
After last months positive update for many of our non publicly listed holdings september was a though month for our listed holdings which decreased in value by 5 %. 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 invested by 88 % and has a 12 % cash reserve. We have continued to buy shares of Compleo Charging Solutions and we have also purchased shares in a NEW portfolio company named Norditek which is something as unusual as a profitable public clean tech company trading at Price to Earnings ratio (P/E) of 10! More information below.
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 September 2022.
Absolicon – Up 6,5 %
Market comment:
Absolicon reported that they had received a down payment of 1 million sek (90 000 USD) for a production line to France in late september 2022. We were positively surprised by this as we did not expect this market to be so close to ordering a production line.
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. 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 – No change
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 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 – Down 23 %
Market comment:
Surprisingly Earthrenew sunk even further down in September. 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 15 %
Market comment:
The company 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 –Down 11,4 %
Market comment:
Vicinity Motors is 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. There is currently a research report from Catalyst research giving VMC a price target of 14 CAD which implies a shocking 885 % upside however this should be taken with a grain of salt although it does still imply the company is undervalued by alot.
Envirometal – No change
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 . 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:
Fusion Fuel reported a big contract amounting to €5 Million Tech Sale Contract for 3.2 MW Green Hydrogen Project in Spain on the 29 th of september 2022. 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 49 %
Market comment:
The market reacted brutal to the minor sales adjustment made by Compleo management on their Q2 results released on september 15 2022. We have also seen that their was a new short positioned opened in Compleo on 21st of september by GSS capital partners LLP which could have contributed to the massive drop in the share price. We are currently down about 48 % in our position but we are 100 % confident that this position will give great returns in the long run therefore we have averaged down the entire way and keep buying more shares at current levels.
Aris Mining Corp ( former GCM Mining) -Not available due to merger
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.
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
Norditek Group
Market cap: 10.35 MUSD
Ticker: NOTEK
Listing: First North Stockholm
Peers: Not available
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
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: 99 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 the month and the closing price at the last day of the month.
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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