Originally published on 2/11 2023
ESGFIRE returns since 2018: + 1000 %
ESGFIRE returns year to date 2023: – 10 %
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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.
Portfolio top picks for October:
Earthrenew
Clean Motion
Market comment for October 2023
On the macro front things are FINALLY starting to look brighter, apart from the conflict in the middle east involving Israel/Palestine. The Federal reserve bank thankfully decided to leave rates unchanged in the latest policy meeting on 1/11 2023 .
This positive macro news from the FED was a welcome respite for markets which have been brutally battered during 2023.
As we’ve , very self-critically, pointed out ESGFIRE underestimated how big of an impact rate hikes would have on our portfolio. Seeing as rates atleast for the time being do not appear to be going any higher we think markets soon can go back to focusing on company fundamentals instead of stocks being put under pressure and funds being moved into bonds at first sight of any additional hikes in market interest rates.
2024 should be a turning point for stocks and especially for ESG stocks in general. The inflationary reduction act passed by the US government in 2022 has set terms to invest $369 billion in Energy Security and Climate Change programs over the next ten years with the goal of fighting inflation, invest in domestic energy production and manufacturing, and reduce carbon
emissions by roughly 40 percent by 2030
Meanwhile the European Union has its own version called the green deal which has the goal of the EU and its member states committed to cutting net greenhouse gas emissions in the EU by at least 55% by 2030, compared to 1990 levels. This target is legally binding and based on an impact assessment carried out by the Commission.
When you take these initiatives into account it’s hard to not be bullish about ESG and cleantech stocks in general. The trick is to make the right picks ;).
The portfolio remains 100 % invested at this point.
Current ESGFIRE portfolio with Monthly performance for October 2023.
Absolicon
October performance: – 17 %
Market comment:
Absolicon have imposed a cost control program after their latest financial report which will reduce the headcount and focus the organization more towards sales (finally). The goals is to reach 10 sold production lines by 2026. The company has also decided not to create more test facilities since the current ones at Carlsberg and Peroni are deemed sufficient. The company has a big pipeline but payments have been delayed from clients and we are worried about the cash reserves of the company. The the goal to reach a turnover of 100 million in 2023 has been postponed until June 2024. The CEO of Absolicon has stated he thinks they will have sufficient capital for the next 12 months if all goes as planned but ESGFIRE is not as confident in this prediction seeing as the company have missed their sales goals on several occasion. Financially the company has no debt and an unused line of credit of 2 million SEK. The reason Absolicon still is allowed to remain an ESGFIRE company is due to the unique product offering. However the need for an external private placement cannot be ruled out.
Replenish (Earthrenew)
October performance : +-0 %
Market comment:
We are confident that the company is bound to see a huge upwards valuation near term and our price target of 0.35 Cents remains intact. This is also our largest position of the portfolio at this point.
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
Vicinity Motor Corp
October performance: -12 %
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.
New orders have been coming in and when we hopefully see profitability reveal itself in the quarters to come the market should start showing its appreciation.
Norditek Group
October performance: – 25 %
Market comment:
Norditek had a great start to 2023 but fell heavily on lower profitability than expected in their Q2 earnings report. Q3 was in line with our expectations and the stock is trading at attractive levels.
Clean motion
October performance: – 9 %%
Market comment:
Clean motion are delivering news on a scale not seen for long and we definately think that their cooperation with NEOM is bound to give them both major revenues and marketing which will enable and simplify sales in their other markets. Unfortunately we have yet to see the company release news on their type approval but hopefully this will materialize soon. Had the general markets been more favorable then we are sure that the stock price of Clean Motion would have reacted very positively on the latest news.
We urge all readers to read our update on Clean Motion with encouraging news.
Landi Renzo
October performance: – 17 %
Market comment:
After holding its ground almost during the entire year of 2023 Landi Renzo stock fell by 17 % in October.
Landi Renzo had a new analysis released by BG which can be viewed HERE. The target price of GBC AG is 0,70 EUR. We also recommend you read THIS analysis on the company for more information.
Gomero Group
October Performance:- 19 %
Market comment:
Where do we begin? Gomero is the biggest dissapointment so far of 2023 with significantly lower growth than expected. We were hoping to see 15-20 % growth in the last quarters but so far we’ve only seen around 10-12 %. We will give Gomero until Q1 2023 to prove us wrong otherwise the company may leave the portfolio going forward.
Ekobot
October Performance: – 25 %
Market comment:
We recommend our followers read our latest update on Ekobot HERE . 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 however the current financing risk should not be overlooked.
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 second 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 Q2 of 2024 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 Q2 of 2023 .
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.
The author holds shares and/or other securities of these companies and the relevant
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may impact the content on the website. Because of the above, ESG Fire urges the visitors to always analyze all the posts critically in an objective manner, e.g., concerning the reliability of the relevant source and of what constitutes the authors’ personal interpretations. The visitor is hereby reminded that the post does, as set forth in the Post, contain interpretations, estimates, or opinions of the authors. This post was written by Filip Erhardt , at ESGFIRE , published at November 2nd, 2023.
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