What’s The Deal With Hyzon Motors?
As Nice Stuff Picks readers already know, Hyzon Motors is about to go public through a SPAC merger with Decarbonization Plus (Nasdaq: DCRB) within the second quarter of 2021
Whereas Hyzon Motors has but to announce the precise merger date, it’s essential to notice that we’re at present within the second quarter of 2021. Actually, we’re within the second month of the second quarter of 2021.
I’m betting that the merger will undergo this month, with Hyzon Motors buying and selling on the Nasdaq below the reported ticker image HYZN.
Why? As a result of Hyzon has mentioned that it expects to be listed in late Might or early June.
In different phrases, you might have little or no time left to purchase DCRB earlier than this inventory skyrockets — and I imply skyrockets.
Proper now, DCRB trades with a market capitalization of simply $286.16 million. Hyzon’s SPAC deal values the mixed firm at roughly $2.7 billion. That implies that DCRB is at present valued at one-tenth of its potential market capitalization post-merger.
That additionally implies that Hyzon Motors may — and I stress may, as a result of the market is screwy this yr with development inventory valuations — commerce as excessive as $80 to $100 per share.
On Friday, DCRB closed under $11 per share. See what I imply by skyrocket now?
However, you may suppose:
- Why would anybody purchase this … SPAC?
- What is the take care of Hyzon Motors?
Fortunately for you, I’ve solutions. They don’t name me Mr. Nice Stuff for nothing, .
It’s The DCRB’s Knees
First, why would anybody purchase DCRB inventory?
I imply, did you see the distinction in pre-merger and post-merger valuations? If the potential for a attainable 700% acquire doesn’t excite you, I don’t know find out how to assist.
However possibly … possibly you don’t imagine that post-merger valuation? Let’s put some perspective on Hyzon Motors’ market potential.
Hyzon Motors makes hydrogen gasoline cell powered business autos, together with heavy-duty vehicles, buses, semitrucks and coaches. And it’s made them for some 20 years now.
Hyzon isn’t any spring hen that pushes its autos downhill — no sir!
Everyone knows that gasoline and diesel are on their manner out. Nations all over the world are already banning combustion engines and shifting towards greener pastures.
Now, I’m not going to get into the entire hydrogen energy debate once more. When you’ve made positive to get your every day dose of Nice Stuff this yr — and why wouldn’t you? — I’ve ranted your ear off already on why hydrogen is the proper inexperienced vitality supply. But when you want to ketchup, or mustard, right here you go:
As you’ll be able to see, I’ve written about hydrogen energy lots. And whereas common electrical autos (EV) are the bee’s knees proper now, hydrogen gasoline cells will give these slow-charging upstarts a run for his or her cash.
However you’re frightened about valuation. Isn’t all people?
In line with an SEC submitting based mostly on knowledge from the McKinsey Middle for Future Mobility, Decarbonization mentioned that the gasoline cell EV market is price $1 billion proper now and can develop 34% yearly over the subsequent decade.
So, by 2031, the hydrogen gasoline cell market will likely be price roughly $20 billion. And who owns the highest hydrogen energy picks on the onset of all this development? All y’all Nice Stuff Picks readers … hopefully.
Hyzon’s Hydro Head Begin
Hyzon already has a foothold within the hydrogen gasoline cell EV market with greater than 400 autos on the street as we converse — umm, write. Moreover, Hyzon not too long ago signed a number of offers to place much more EVs on the street:
However, however … everybody within the U.S. is betting on conventional EVs! And the place the heck may you refuel a hydrogen truck?
I’ll let Hyzon Motors CEO Craig Knight take this one:
Hydrogen is way more accessible in locations like Germany or the Netherlands. There’s already a variety of business car stations the place you’ll be able to simply pull up and pay to replenish such as you do with gasoline immediately within the U.S.
It received’t be lengthy earlier than that may be a actuality, however for the second, we restrict the dependence on networks of hydrogen stations by specializing in the purchasers that use back-to-base working fashions, the place you solely want one piece of hydrogen infrastructure to gasoline dozens and even generally lots of of autos in a given space.
That quote is from an interview Knight did with TechCrunch on March 1. Discover how Knight is conscious that the U.S. doesn’t have many hydrogen fueling stations, however he’s not involved.
Hyzon Motors additionally offers corporations with centralized hydrogen fueling stations, permitting fleet autos to return to base and refuel.
However as soon as the transportation trade will get ahold of this expertise — particularly with semitrucks — that may change shortly.
You see, most shoppers nonetheless aren’t absolutely on board with “conventional” EVs. Throwing another choice like hydrogen energy into the combination goes to mess them up much more. Simply consider the VHS versus Betamax wars … or HDVD versus Blu-ray.
Proper now, conventional EVs have the higher hand. But when the transportation trade chooses hydrogen, that’s a large leg up for hydrogen energy and for Hyzon Motors.
So, let’s recap:
DCRB inventory is severely undervalued heading right into a merger that values Hyzon Motors at $2.7 billion.
Hyzon Motors has severe development potential and continually takes new orders for hydrogen gasoline cell autos across the globe. And the place corporations don’t have their very own hydrogen fueling stations … Hyzon hooks ‘em up.
The hydrogen gasoline cell market will likely be price roughly $20 billion within the subsequent 10 years.
Hyzon Motors will likely be listed on the Nasdaq quickly.
Proper now, you might have an opportunity to put money into Hyzon Motors earlier than the corporate begins buying and selling publicly.
Nice Stuff Picks readers who purchased in again after I beneficial DCRB are down about 35% proper now. Mea culpa, Nice Ones. I ought to’ve acknowledged the hype that SPACs have been receiving on the time. I used to be additionally unprepared for Wall Avenue to instantly understand that inventory valuations really meant one thing.
That mentioned, these of you who held on to DCRB will likely be rewarded. And those that purchase DCRB now will see much more upside potential.
When you haven’t already: Purchase DCRB.
However, in the event you’re nonetheless not able to broaden your Hyzon horizons but, we’ve you hydrogen holdouts lined all the identical.
This new expertise is being hailed as a game-changer. It permits solar energy vegetation to soak up way more vitality throughout the day and pump it again out each time it’s wanted … even hours after the solar’s gone down.
Briefly, it makes solar energy work “on demand.” And now, the world’s billionaires are scrambling to get in on it.
Elon Musk, for instance, expects Tesla will ultimately make as a lot cash from this expertise because it does from its automobile enterprise. “The yr on yr development,” he says, “will likely be completely unbelievable.”
Click on right here for the complete scoop.
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Till subsequent time, keep Nice!
Editor, Nice Stuff