Although investing in hydrogen may offer great opportunities, it should be approached with caution as an investment. First of all, the question is whether hydrogen can play an important role in the energy transition and, if so, what exactly that role is. For example, can it compete as a fuel against competitors such as electric cars? In addition, it must also be taken into account that other technological developments could quickly eliminate the need to use hydrogen. In the fuel cell producer sector there is also fierce competition, also with other non-listed fuel cell producers.
With technology under development, it is therefore very difficult to say where it is going. The optimism surrounding hydrogen can therefore be premature. It seems interesting technology to keep an eye on and perhaps take a small gamble as an investor, but also one with potentially many risks, always be sure to check out all the brokers online in Colombia at C-TradeAlert.CO
Risk on equity issues
By the way, don’t look at the low price per share, especially with the new companies that do something with hydrogen. Some of these companies are pennystocks (cheaper than €1 per share) and therefore seem cheap, but a number of things are not reflected in the price chart. For example, a company may already have made several share issues. This means that a company issues new shares in order to attract new capital. Because more shares then come onto the market, the price of the current shares becomes worth less, which is why such a share can quickly become a penny stock.
What is also not reflected in the price chart are share splits. This means that existing shares are merged into a new share. For example, if a company has 1 million shares on the stock exchange of €0.01 per share and decides to merge 10 shares into 1, then there will still be 100,000 shares on the stock exchange and the new price per share will be €0.10 per share.
- This will have no further effect on all outstanding shares, except that you will have fewer shares for a higher price. This is also something that has already been corrected in the price chart, so you will not see that the price suddenly goes from €0.01 to €0.10 because of this. An example of a combination of share issues with share splits is something that is clearly visible in the five-year price graph of Taronis Technologies or the five-year graph of Fuelcell.
- A combination of share issues and share splits is often something that companies do to raise more capital when they need money. A share issue first lowers the price, then at some point a share split is made which makes the price on paper look a little higher again, until new money is needed and a new issue follows.
- This is ideal for the company because they can continue their activities and only have to reward the shareholder when things are going well. For incumbent shareholders only less favorable because the shares you own become worth much less. So be cautious in this respect with companies that systematically make losses and depend on issues to continue doing business with this website.