Vision Hydrogen, now Vision Energy, pins hopes on stock split

Vision Hydrogen Corporation (OTCMKTS: VIHD) is a renewable energy company whose primary goal is to develop clean hydrogen production facilities that supply clean hydrogen to gas and power manufacturers and traders. They also work with consumers in the industrial, heavy-duty and shipping sectors. – MarketBeat

Earlier this month, Vision Hydrogen Corp began a steady and rapid rise in the market, from $5 on Monday, October 31, to a closing price of $10.00 on Friday, November 4. Although the stock is thinly traded, Friday’s dollar volume was up 25% to $1.7 million. This is just the most recent share of the same stock that has skyrocketed from $2.50 in December 2020 to over $50 in the next month.

now known as Vision Power Corporation (OTCMKTS: VIHDD)the stock is currently trading at $14.79 with a market valuation of $420 million.

Strategic stock split should boost stocks

This recent and dramatic change in momentum came after the energy company announced the approval of a 1-for-2 stock split on November 7, 2022. The statement also included an intention to change its name from “Vision Hydrogen Corporation to “Vision Energy”. Corporation.”

Effective November 8, Vision Energy Corporation’s common stock now trades under the ticker symbol VIHDD, which designates the forward split, for the first 20 days. Effectively, then, at the end of the month, they will receive a new ticker symbol.

For now, we know that the new CUSIP number for the company’s common stock is 92837Y200. This Forward Split results in an increase in common shares outstanding, from 21,048,776 to 42,097,552. It will also double the number of authorized shares, to 200,000,000.

Expansion of hydrogen operations shows promise

At the same time, Vision Energy Corporation also provided an update on its pioneering Green Energy Hub project in the North Sea port of Vlissingen, the Netherlands. Through Vision Energy’s wholly owned subsidiary, Evolution Terminals BV, it has now reached the advanced planning stages for both the construction and delivery of North West Europe’s first import, storage and handling terminal designed exclusively for carriers. of hydrogen, renewable energy products and low carbon emissions. fuels

The substantial refurbishment will enable Evolution Terminals to adopt industry-leading sustainable operating practices to reduce emissions from terminal activities. It will also introduce a green and renewable energy business model in the Netherlands at an opportune time.

Why split shares now?

On April 1, 2017, VIHD hit an all-time high of $32.50 only to drop IMMEDIATELY to a new low of $5,207 on November 1, 2018. a small plateau at $10 before another drop and bounce and then leveling off at around of $2.05 during the second half of 2020. Fortunately, the stock shot up to $14.75 at the end of that year, only to start another drop to reach its highest point. recent low of $2,375 on September 1, 2022.

Net income has been negative for most of the company’s operations. This is particularly notable as net income went from -$478.4K in 2016 to +$8.9K in 2017 and then fell back to -$554.0K in 2018. This translated into earnings per share (EPS) of -$0.17, $0.00 and – $0.07 , respectively.

At the same time, revenues have been increasing: from 20.9 thousand in 2016 to 7.5 million in 2018. Gross operating expense revenue also increased from 418K to 2.0M between 2016 and 2017, but then settled at 1.8M in 2018.

Looking at all of this, it makes sense that Vision Hydrogen would consider a split. With the decline, they have seen in the last year that this could give them a fresh start.

A complicated position in a complex industry

Going forward, it’s hard to say how VIHDD will perform against its peers and competitors, but its current state certainly means the stock has plenty of room to grow. Yes, its current value is still around $15, basically the all-time high for the [new] stocks, which is significantly better than the all-time low on record ($1.25); in fact, the year to date is up +224.32%.

However, these are probably the only positive values ​​for HIVDD at this time, especially when compared to companies like NextEra Energy (NYSE: NEE) and The Southern Corporation (NYSE: SO). NextEra ($81.61; +4.36%) is the largest electricity utility holding company in the United States, which includes both fossil fuels and green energy such as wind and solar. The Southern Company is a more traditional fossil fuel-based power company (which Forbes has recently called “2North Dakota Best Large Employer in America”)

Neither of these companies is having a stellar year, as NEE and SO are down -16.24% and -7.49%, respectively, year-to-date. That said, analysts have some positive expectations, suggesting earnings of around 19% for both energy companies. Additionally, Southern has a P/E ratio of 20.18; NextEra’s is about double. These are also particularly excellent metrics, especially when compared to VIHDD’s current and, let’s remember, limited P/E of -45.42. Finally, both NEE and SO have favorable return on equity metrics (around 12.25% each), while VIHDD’s RoE is currently -391.22%.

By comparison, however, other hydrogen stocks are also down, despite the promise hydrogen offers for the future of energy. Ballard Power Systems (Nasdaq: BLDP), Power Plug (Nasdaq: PLUG)Y Bloom Energy Corp (NYSE: BE) they are also all on a rebound from recent lows, hoping to regain their great heights.

However, at the end of the day, VIHDD gets a BUY rating, mainly because the split gives it more opportunities to grow; and the evidence suggests that it will continue to do just that.

Leave a Comment