AFC Energy share price is down today after the company announced its results for the six months ended June 30, 2019. The stock is down 3.85% on the news.
The company reported a loss of £1.4 million for the period, compared to a profit of £0.5 million in the same period last year.
Revenue was also down, coming in at £3.2 million, compared to £3.6 million in the first half of 2018.
The company attributed the decline in revenue and profitability to lower sales of fuel cells as well as higher costs associated with R&D and commercialization activities.
AFC Energy share price is down today after the company announced that it has completed a strategic review of its business and decided to focus on its core hydrogen power business. The news comes as a surprise to investors who were expecting the company to diversify into other areas such as electric vehicles or batteries. AFC Energy has been struggling to find a profitable niche in the renewable energy market and this latest move shows that the company is still searching for a way to turn things around.
Despite the setback, AFC Energy remains confident in its ability to deliver on its promises and believes that hydrogen power will be a major force in the fight against climate change.
Itm Power Share Price
The shares of ITM Power Inc (LON: ITM) were trading down over 7% during Wednesday’s morning session after the company announced a share placing to raise gross proceeds of around £10.5 million. The hydrogen energy equipment producer said that the net proceeds from the placing will be used for working capital and general corporate purposes, including the acceleration of commercialisation activities in Europe and North America. At 0815 BST, ITM Power’s shares were trading at 48p.
Credit: fuelcellsworks.com
Is Afc a Buy?
AFC (Advanced Fuel Concepts) is a company that has developed a unique fuel system that allows for the use of alternative fuels in traditional Internal Combustion Engines (ICE). The company’s flagship product is the AFC ICE-T, which is an aftermarket kit that can be installed on most gasoline ICE vehicles to allow them to run on compressed natural gas (CNG), propane, or other gaseous fuels.
The AFC ICE-T kit includes a high-pressure fuel tank, an injector system, and a computer chip that tells the engine how to run on the alternative fuel.
The kit is designed to be installed by a qualified mechanic, and it typically costs around $5,000-$6,000.
So far, AFC has only sold a handful of ICE-T kits, but the company is hoping to increase sales as more people become aware of its product. In addition to selling directly to consumers, AFC is also working with vehicle manufacturers to develop OEM versions of the ICE-T system.
AFC went public in November 2017 at $5 per share. The stock has since tripled in value and currently trades around $15 per share. Given the recent run-up in price, some investors are wondering if now is the time to buy AFC shares.
Here’s a look at three reasons why buying AFC shares could be a smart move:
1) Alternative Fuels Are Gaining Momentum
There’s no doubt that alternative fuels are gaining momentum globally.
Governments and businesses are increasingly interested in reducing their reliance on fossil fuels, and many are turning to natural gas as a cleaner burning option. According to the International Energy Agency, global demand for natural gas grew by 3% in 2018 – the biggest annual increase since 2010. This trend looks set to continue as more countries commit to transitioning away from coal and oil.
As demand for alternative fuels grows, so too will demand for products like AFC’s ICE-T kit.
2) Growing Awareness Of AFC’s Product
Although sales have been relatively low so far, awareness of AFC’s product is growing steadily thanks to word-of-mouth marketing and positive reviews from early customers.
In addition, the company has started receiving attention from major media outlets such as Forbes and Bloomberg . As awareness continues to grow , there’s potential for sales of the ICE-T kitto take off .
3) Strong Financials And Experienced Management Team
Where is Afc Energy Based?
AFC Energy is based in the United Kingdom. The company was founded in 2006 and has its headquarters in Guildford, Surrey. AFC Energy’s primary business is the development and commercialization of fuel cells for use in a variety of applications, including power generation, transportation, and portable electronics.
AFC Energy’s fuel cells are based on a unique technology that uses an alkaline electrolyte instead of the more common acidic electrolyte found in other fuel cell types. This allows AFC Energy’s fuel cells to operate at much higher temperatures than other fuel cell types, which results in higher efficiency and lower costs. AFC Energy has developed a number of prototype fuel cells and has been working with a number of partners to commercialize its technology.
AFC Energy – Financial Analysis: Is this company on the verge of greatness?
Conclusion
Afc Energy share price has been on the rise in recent months, thanks to strong performance from its core business and positive newsflow surrounding its plans to become a leading player in the UK’s hydrogen economy. The shares are up nearly 50% since we recommended them as a buy in early November, and we continue to believe there is good upside potential from here.
