Originally published on 7th of August 2023
ESGFIRE returns since 2018: + 1000 %
ESGFIRE returns year to date 2023: +15 %
NASDAQ returns year to date 2023: + 34 %
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Portfolio comment for July 2023
We want to again strongly point out that we are currently most bullish on our position in Replenish (Earthrenew) which we see as our top pick right now. We have a target price of 0,30 CAD on Replenish since they announced a 7 million CAD grant from the Canadian government which will fund the equity for their new Deboult granulation facility.
Equity markets have continuted to see rising indexes as equity markets seem to price in either a less hawkish Federal reserve bank, stronger earnings or both: We find it quite remarkable that markets have been able to shake off one of the fastets interest rates hikes in over 15 years!
The portfolio remains 100 % invested at this point. We have seen many former portfolio companies in pre revenue stage decrease in value by more than our own portfolio. The reasons vary however in this new market condition valuations and a well funded business have become increasingly more important than ever before.
About us:
ESGFIRE is a Swedish investment company and research firm that focuses on companies with either an environmentally friendly service or product. ESGFIRE has a performance record of over 1000 % returns since 2018. By only investing in environmentally friendly companies, ESGFIRE have outperformed the major indexes for several years. We have a track record of over 1100 % returns since 2018 using our own proven method of identifying high potential ESG companies.
Current ESGFIRE portfolio with Monthly performance for July 2023.
Absolicon
July performance: + 15%
Market comment:
Absolicon has seen is stock repair itself quite considerably the past weeks.
The risk reward has increased as Absolicon have signed in total 21 framework agreements and totals a sales pipeline exceeding $120 million USD. One production line should produce one off revenues of 4-5 MUSD and recurrent revenue of 3-4 MUSD annually.
Biofrigas
July performance: No change
Market comment:
During June the biogas industry received positive news as the EU commission accepted the general exception regulation (GBER) which enables biogas to be exempted from tax without the need for a formal application. The Swedish government also announced that they have extended the national biogas support and to increase the money available. We remain slightly positive of Biofrigas as we attended the general assembly meeting and received a general update from the CEO.
Replenish (Earthrenew)
July performance : + 20 %
Market comment:
We encourage all our readers to read our target price update on Replenish (Earthrenew).
The market does not seem to appreciate the fact that the company has its path clear to 40 million in revenues by 2024 not including potential licensing deals.
The company received 7 million CAD in grants which are not required to be repaid. The cash will be used as equity for the companys Deboult granulation facility and remaining funds are expected to be secured through loan term sheets.
Other potential triggers near term are:
1. Licensing revenues with high margins and ongoing discussions with partners.
2. Field studies showing the superiority of the companys products.
3. Build start of Deboult granulation facility
We are confident that if all these things fall into place the company is bound to see a huge upwards valuation near term.
Vicinity Motor Corp
July performance: +45 %
Market comment:
Everything is in place for Vicinity Motors to have a smashing end of 2023. Credit facility is in place, the 150 million dollar backlog looks strong and the new Ferndale facility is also in the making. July saw a great comeback month for the companys stock.
Norditek Group
July performance: -23 %
Market comment:
Norditek had a great start to 2023 but fell heavily on lower profitability than expected in their last earnings report. The lower earnings were mainly due to investments for future growth. This is a good level to increase on. The stock magazine Börsveckan recently issued a purchase recommendation.
Clean motion
July performance: – 12 %
Market comment:
We are somewhat dissapointed with the late type approval of Clean Motions delivery vehicle EVIG. However the circumstances are beyond the company’s control and we still think there is a possibility that the approval will be ready before end of august this year.
We attended Clean Motions general assembly and gave our readers a very interesting report LINK HERE
Landi Renzo
July performance: no change
Market comment:
This hydrogen and RNG mobility company is set for massive growth and is extremly undervalued with more than 100 % upside. We published a guest article in March at Börsvärlden which can be read here.
We recommend you read THIS analysis on the company for more information.
Gomero Group
July Performance: +10 %
Market comment:
We were quite surprised by only an 11,5 % increase in revenues in the last company report for Q2. Q1 from Gomero was also a dissapointment as growth was below 10 % ( 8 %) . We will wait to revise our projections until we see the results for Q3 of 2023. Gomero has a history of weak Q1 reports and stronger Q3-Q4s so we were not completely shocked by the result. An interesting aspect to note is that they now have begun reporting the different revenue streams where subscription revenues are growing Our investment case is based on a growth assumption is a year over year organic growth between 20-30 %.
Ekobot
July Performance: + 46%
Market comment:
We recently published an article in Börsvärlden on Ekobot which should provide you with some interesting input as we think a fair share price would be around 5 SEK. The CEO resignation by Erik Jonuks could be one explanation for the downward trend that has struck the share price recently however the company is currently valued next to nothing. Considering that competitors are valued in the several hundred million dollar range we think it’s fair to say the risk reward is good in Ekobot!
July was a great month for Ekobot stock which increased almost 50 %!
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:
ESGFIRE and those of our readers who invested in the company entered at a valuation of 30 MCAD implying a likely 12-24 X upside to our initial investment. The company is likely going public in the first quarter of 2024 on one of the Canadian stock exchanges or NASDAQ.
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. The company currently has a 500 million USD sales pipeline.
IPO status:
Captico2 is currently undergoing restructuring and IPO plans have been postponed .
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 300 % 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 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.
This post is based upon reliable sources, namely regulated press releases from the company, as referred to above. Nevertheless, this post may contain interpretations, estimates, or opinions of the authors, or other non-factual information. If that is the case, this is continuously stated above. Furthermore, any projections, forecasts, or similar are explicitly stated as such. These projections, forecasts, or similar have been conducted based on EV/SALES multiple calculations.
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