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Tech Roundup: Hydrogenics (T.HYG) powers up, TransGaming (V.TNG) builds

Gaalen Engen Gaalen Engen, Stockhouse.com
0 Comments| July 25, 2014


Hydrogenics (TSX:HYG, Stock Forum) made its corporate debut in 2009 with a mission to supply hydrogen generators, hydrogen fuel cells and hydrogen storage systems to the hungry world market seeking to augment conventional power generation grids and the exploding renewable resource sector, while feeding the new trend in alternatively fuelled transportation.
 
It took a while for the company to get on its feet after an initial slip in the market as it established a customer base, but in January 2011, it began its long climb to become a recognized member of the alternative and renewable energy sector. The company has a fairly tight share structure and has only gone to the market twice since then to bolster its books. 
 
With a string of deals supplying hydrogen generation systems, fuelling stations and hydrogen storage systems, the company has steadily found itself a place in the exploding energy storage market set to see annual installation sizes of 6 gigawatts (GW) by 2017 and over 40 GW by 2022.
 
Hydrogen remains a smaller part of the party as its is expected that 64% of energy storage systems will come from lithium-ion batteries, but with the advancement of technology dropping the price per kW, hydrogen may be in for a larger slice of the pie.
 
The company still isn’t in the same league as ABB, AES Energy Storage and Convergent Energy + Power, but as the market shifts toward more distributed energy storage systems (DES), Hydrogenics still remains in play as a strong contender. Recent coverage from Jennings Capital is said to put the company at a BUY rating.
 
Today’s announcement made more positive activity for the company as it revealed that it had been awarded a 1 megawatt hydrogen energy storage system to be deployed in the City of Hamburg, Germany to be run by the world’s largest investor-owned electric utility servicer provider, E.ON.
 
According to the news release, the unit is geared for hydrogen production, using excess power generated from renewable energy in the region, mainly wind. The system will be the world’s largest single proton exchange membrane (PEM) electrolyser stack and will serve as the building block for future multi-megawatt applications.
 
Company president and CEO, Daryl Wilson, commented on the monumental event, “This is another exciting milestone both for Hydrogenics and the energy storage industry in general. Sites such as this E.ON facility will allow Germany to more efficiently use the large amount of renewable energy generated from wind and solar power, which can fluctuate dramatically due to environmental conditions.”
 
He went on to explain, “Hydrogen-based energy storage systems can absorb surplus energy as needed, return power when required, alleviate grid instability, and improve overall utility performance. In addition, the hydrogen produced can be stored in large quantities over long periods of time within the country's natural gas infrastructure.”
 
Then he concluded, ”Using our technology, Hamburg will have the most advanced Power-to-Gas facility in the world and the largest PEM electrolysis installation producing hydrogen. We are pleased to be working once again with E.ON on this groundbreaking project, having just delivered our first energy storage equipment to them in December, 2012.”
 
With solid management making strategic deals in a cost effective environment, this is a company to keep your eyes on.
 
Shares bumped 17.03% on the news to $22.81 per share.
 
Currently there are 10.1m outstanding shares with a market cap of $230.1 million.
 
Now for something completely different…
 
Smart TVs are changing the way we view our entertainment, adding an on-demand social aspect that we never had before and like Facebook, they are disruptive and will become the norm in the next five to ten years.
 
It is said that by 2018, there will be over 759 million televisions connected to the Internet worldwide with 43% of American TVs becoming smart by 2016. Into this exploding market there are a few key players such as Chromecast, Roku and Apple, but the supply side is still somewhat fragmented allowing for new providers to establish a foothold in their particular niche.
 
Transgaming (TSX:V.TNG, Stock Forum) has put their hat into the ring with their GameTree TV, a cloud gaming service focused on family-friendly entertainment. The company has been signing onto major manufacturers such as Samsung, Sharp, Panasonic, Toshiba and Phillips.
 
The company hit a market high when it announced its deal with Samsung at the beginning of the year, but as with many developing sectors, reality set in. We still don’t know where Smart TVs will eventually end up as we are still attempting to figure out social media in general. There will be many bubbles and failed enterprises before the sector matures and there is a possibility that services such as GameTree may not hit the mark and fall into the abyss of obsolescence. Remember mySpace and Friendster?
 
The company has had to go to the market as it builds its customer base leaving it will a high share float count compared to market capitalization, but stock prices are still relatively low for a modest long term investment ride. Getting in the ground floor of this company does bear some attraction, but I wouldn’t bet the farm until I knew it had longevity in a sector that has yet to solidify.
 
Shares were up 9.09% today to $0.12 per share.
 
Currently there are 116.0m outstanding shares with a market cap of $13.9 million.
 
And now a market summary of Tech companies on the TSX:
 
 
 
T.HMM.A   +0.190 +13.10% 1.640 168.01k
V.TNG   +0.010 +9.09% 0.120 411.55k
T.NII   +0.020 +4.08% 0.510 92.9k
T.CCV   +0.050 +4.00% 1.300 8.2k
T.DBO   +0.010 +3.70% 0.265 28.5k
T.EFL   +0.040 +3.64% 1.120 10.6k
T.EXF   +0.130 +2.71% 4.950 2.17k
T.ESP   +0.070 +2.37% 3.000 93.31k
T.LMP   +0.500 +2.23% 22.900 1.9k
T.AJX   +0.010 +1.27% 0.790 12.5k
T.CLS   +0.140 +1.17% 12.130 271.41k
T.GIB.A   +0.350 +0.92% 38.430 318.44k
T.SW   +0.150 +0.72% 20.870 34.94k
T.SW   +0.150 +0.72% 20.870 34.94k
T.ESL   +0.150 +0.45% 33.720 4.9k
T.OTC   +0.150 +0.29% 51.330 56.64k
T.MNW   +0.030 +0.26% 11.480 85.58k
T.KXS   +0.040 +0.25% 15.800 1.52k
T.AVO   +0.060 +0.25% 23.990 114.11k
T.CDV   +0.010 +0.24% 4.110 49.86k
V.SY   0.000 0.00% 0.275 25k
V.PKK   0.000 0.00% 0.035 247.9k
C.GNR   0.000 0.00% 0.850 13.5k
V.SYD   0.000 0.00% 0.240 8.1k
T.NXJ   0.000 0.00% 1.960 0
T.HDX   0.000 0.00% 0.270 0
T.AXX   0.000 0.00% 2.620 3.6k
T.CSU   -0.460 -0.18% 260.610 17.32k
T.DH   -0.060 -0.19% 31.190 55.16k
T.DW   -0.010 -0.22% 4.510 12.33k
T.MDA   -0.210 -0.25% 82.790 17.44k
T.WIN   -0.010 -0.30% 3.330 44.36k
T.BB   -0.040 -0.36% 11.110 1.73m
T.SMA   -0.010 -0.37% 2.650 3.38k
T.ET   -0.100 -0.58% 17.000 470
T.PUR   -0.050 -0.63% 7.880 3.57k
T.SVC   -0.030 -0.84% 3.550 185.98k
T.NLN   -0.010 -0.88% 1.120 28.25k
T.UR   -0.010 -0.90% 1.100 353.23k
T.DSG   -0.160 -1.08% 14.710 26.71k
T.DHX   -0.080 -1.10% 7.150 633.31k
T.CMG   -0.180 -1.25% 14.210 35.64k
T.WEW   -0.005 -1.30% 0.380 27.07k
T.RDL   -0.050 -1.33% 3.670 9.95k
T.RKN   -0.095 -1.86% 5.010 90.37k
V.FLY   -0.010 -2.50% 0.390 97.42k
V.SIO   -0.010 -3.77% 0.255 24.97k
V.ANY   -0.340 -4.05% 7.960 68.15k
T.RC   -0.160 -5.86% 2.570 8.77k
V.SEV   -0.030 -7.14% 0.390 18.5k
T.DWI   -0.300 -15.00% 1.700 1.32m
V.LXV   N/A N/A N/A 0



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