Originally published on 10th of July 2023
ESGFIRE returns since 2018: + 1000 %
ESGFIRE returns year to date 2023: – 10 %
NASDAQ returns year to date 2023: + 26,5 %
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Portfolio comment for June 2023
We want to again strongly point out that we are currently most bullish on our position in Earthrenew which we see as our top pick right now. Earthrenew may have found a way to fully finance their new Deboult granulation facility using ONLY non dilutive financing(LINK). The new facility could generate revenues of up to $25 million annually and with existing facilities total over $40 million in revenues.
Several central banks were back at it during june and hiking their bank rates to try and stem persistently stubborn inflation. This has negatively affected most companies that are not already profitable and unsurprisingly there are plenty of this kind in ESG stocks :).
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.
Gladly on the makro front Inflations seems to finally be coming down which should provide a warm welcome from central banks around the world.
Current ESGFIRE portfolio with Monthly performance for June 2023.
Absolicon
June performance: + 30 %
Market comment:
Our theory on the latest share price development in Absolicon is twofold. Firstly the company failed to gain any higher interest in their share price placement which only was subscribed to 36 %. This also means the company may need to seek additional financing in the next 6-8 months. Secondly the company has not given the market any update on the delivery of their two sold production lines. We have been in contact with management regarding this and hope to see some kind of update for the market soon.
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
June performance: -15 %
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.
Earthrenew
May performance : + 10 %
Market comment:
We encourage all our readers to read our Q1 financial report of Earthrenew – link HERE
There are extremely interesting triggers out of the main ones are:
1. Potential non dilutive financing for the 25 million revenue Deboult facility
2. Licensing revenues with high margins and ongoing discussions with partners.
3. Field studies showing the superiority of the companys products.
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
June performance: +10 %
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.We hope 2023 will be a great comeback for Vicinity Motors!
Norditek Group
June performance: + 10 %%
Market comment:
Norditek has had a great start to 2023.. The company stock performance has exceeded our expectations. The latest financial report however was more normal in terms of revenues due to the comparable quarter last year having one off revenues which was an effect of supply chain issues. The stock magazine Börsveckan recently issued a purchase recommendation.
Clean motion
June performance: +- 0 %
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
May performance: + 7 %
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
June Performance: – 10 %
Market comment:
The company’s distributor in Australia, King Hill, recently reported sales of Gomero’s Sipp solution (worth 1 million SEK ) for predictive maintenance. We think this is a positive sign that the Australian market has begun to generate sales .However latest report from Gomero was a dissapointment as growth was below 10 % ( 8 %) . We will wait to revise our projections until we see the results for Q2 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
June Performance: + 22 %
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!
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 for a few months.
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.
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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