A bet on the green future
Updated
I just recently discovered this company and I must say, I'm impressed. They sell renewable natural gas systems that can basically transform biogas that comes from food waste, waste water, landfill manure and crop waste, into natural gas that can be put into the normal natural gas grid. This market is in its infancy. Right now there is only a 0,3 % penetration. With everything that is happening at the moment with green energy and Biden talking about joining the Paris agreement again, I think this market could grow 1000 % in a matter of five years, and that is being conservative quite frankly. The reason this is a green energy company is because the biogas that these systems trap, would've otherwise gone up in the air causing the exact same damage to the ozone layer as if it was transformed to natural gas.
This company has a price to sales ratio of 2, which should already give you an Idea of how cheap it is. This is obviously not groundbreaking technology but if you compare them to other green energy companies like Ballard Power trading at a price to sales ratio of 30, Greenlane renewables seems very cheap compared. They haven't reported a positive net income result yet but I think this next quarterly report will change that. With that being said they haven't suffered any notable losses either and their debt is very manageable with only 7 million in short debt and 15 million in long term debt. They have already got 38 $ million in new contracts in 2020, and the report might reveal even more deals added to the backlog. This company is the biggest company in the sector, and now that they are well capitalized I think they would be in the best position to capitalize on any sector growth. I expect this stock to be above 1 $ shortly after the report, given that we can break the previous resistance around 0,85 $. Let me know if you have any questions.
- Emil Ramsby Rasmussen
This company has a price to sales ratio of 2, which should already give you an Idea of how cheap it is. This is obviously not groundbreaking technology but if you compare them to other green energy companies like Ballard Power trading at a price to sales ratio of 30, Greenlane renewables seems very cheap compared. They haven't reported a positive net income result yet but I think this next quarterly report will change that. With that being said they haven't suffered any notable losses either and their debt is very manageable with only 7 million in short debt and 15 million in long term debt. They have already got 38 $ million in new contracts in 2020, and the report might reveal even more deals added to the backlog. This company is the biggest company in the sector, and now that they are well capitalized I think they would be in the best position to capitalize on any sector growth. I expect this stock to be above 1 $ shortly after the report, given that we can break the previous resistance around 0,85 $. Let me know if you have any questions.
- Emil Ramsby Rasmussen
Trade closed: target reached
We couldn't break 0,85 $. Therefore I have taken profits for now. I will enter again after the stock price has cooled off.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.