Seeking the competitive edge
26th August 2021 |
A BBC report found that in July 2021, more electric cars were registered than diesel-engine cars in the UK for the second month in a row.
Battery electric cars equated to 9% of sales in July, whilst diesel cars made up 7.1%.
This is the third time that the registration of battery electric cars has overtaken diesel car registrations in the past two years, on a month-by-month basis.
Admittedly, there is still a fair way to go before electric car registrations catch up with those of petrol-engine cars.
Petrol-powered cars accounted for 44.8% of new vehicle registrations in July. So, it’s also fair to say the internal combustion engine car isn’t quite dead yet!
But with the UK government’s plans to ban sales of petrol and diesel cars by 2030, it is eventually a case of when, and not if, electric car registrations will exceed petrol car registrations.
Of course, the growing number of electric vehicles (EVs) on the country’s roads means a rise in demand for the batteries that power them.
This is the market opportunity that AMTE Power (LSE: AMTE) is looking to exploit.
AMTE, a stock in the Frontier Tech Investor portfolio, is a manufacturer of lithium-ion and sodium-ion battery cells to the automotive, oil and gas, and energy storage industries.
On 19 August 2021, the company announced that it is expected to be confirmed as a new partner to a £9.7 million UK government-funded project called CELERITAS.
In the project, Sprint Power, a UK technology and engineering company, will lead battery technology development for BMW, but also in partnership with AMTE, BP, Clas-SiC and Eltrium.
In the project, Sprint Power is seeking to deliver a battery that can achieve 80% charge for a 280-mile range, after just 12 minutes of charge.
To help meet these targets, AMTE will be providing its fast-charge battery technology.
AMTE had also been selected as a lead supplier in a three-year government-backed project called ULTRA on 25 June 2021.
Clearly, the government is identifying AMTE as a key player in the shift towards EVs – and that gives AMTE a competitive edge.
Another reason for optimism at the moment is that AMTE is planning to open a new Gigafactory (a large production facility) plant in 2023. The location is still yet to be named.
We reiterate our BUY recommendation on the stock. You can find the original recommendation here.
Buy list update
Corero Network Security (LSE: CNS)
Our increasing dependence on digital technology has come at a cost of more frequent cyber-attacks.
According to Check Points, ransomware attacks (a form of cyber-attack) have increased by 93% in the first half of 2021 compared to the same period in 2020.
Corero, one of the companies in the Frontier Tech Investor portfolio, seeks to prevent cyber-attacks with its cyber-defence solutions.
On 27 July 2021, the company announced an upgrade to its flagship Smart Wall cyber-defence solution.
One of the main features of the solution is that it enables scrubbing capability.
“Scrubbing” in this sense, is the ability to stay online during cyber-attacks without losing service.
Often time, when an attack is detected, systems will shut down as it looks to protect sensitive data.
However, doing this can bring a lengthy disruption to business, meaning the company involved can miss out on revenues.
We think that this upgrade will likely strengthen Corero’s position in the cyber-security market.
Its ability to provide maximum protection, and to allow business to operate as usual even if an attack is launched, will save companies time, money and the hassle of being in shut-down mode.
In what is becoming an increasingly crowded cybersecurity market, this could prove to give Corero a competitive edge.
We reiterate our HOLD recommendation on the stock. You can find the original recommendation here.
Gfinity (LSE: GFIN)
Gfinity, another Frontier Tech Investor holding, is a pioneer in a very quickly growing area: e-sports. The company develops and produces software that hosts major gaming tournaments.
On 23 August 2021, the company announced the proposed acquisition of Megit Limited, a private company which owns the website Stock Informer.
Stock Informer is a website that tracks the availability of “hard to find” electronic products, such as the PlayStation 5 and Xbox Series X consoles.
Gfinity is set to offer £2.5 million in cash and £2.5 million worth of its Ordinary Shares to acquire Megit.
Gfinity is selling shares at 4GBp per share to the public in order to raise the cash that it needs for the Megit deal. This public offer opened and closed on Monday 23 August.
Commenting on the potential acquisition, John Clarke, CEO of Gfinity, noted:
“Gfinity’s strategic focus is based on strengthening and growing ‘what we own’, in particular the Gfinity Digital Media group. The proposed acquisition of Stock Informer delivers this. It is a highly profitable ecommerce referral site for gamers and their lifestyles… It is a transformational acquisition for the Company and highlights the ambition of the Directors to continue to drive profitable growth within the Group”.
We can vouch for the fact that getting your hands on a PlayStation 5 is extremely difficult these days, so the site will undoubtedly provide a competitive edge to Gfinity and value for its gaming customers.
Gfinity remains as a HOLD in our buy list while it continues to trade over our buy limit. You can find the original recommendation here.
The Frontier Tech Investor “Top Three”
Sometimes it’s hard to decide on which stocks to invest in from our buy list.
Below is our Frontier Tech Investor “Top Three” section showing three stocks in open BUY positions. If you’re trying to figure out what to invest in next, these are three that we think are a great place to start.
This doesn’t mean our other stocks are no good: this is just a tool to help you spot the next Frontier Tech Investor stock that could be worthy of your consideration.
Mode Global Holdings (LSE: MODE) – Mode looks to revolutionise the way in which payments are being conducted. Its platform provides a seamless way to manage, and spend assets from both monetary systems; the old, fiat currency system, and the new, crypto and digital assets system. The platform has unique features, such as the potential for you to earn interest on your bitcoin holdings. We see the popularity of Mode rising in line with the wider adoption of cryptocurrencies as a means of payment. You can find the original recommendation here.
Equals Group (LSE: EQLS) – Equals is a one-of-a-kind international payment ecosystem that removes the barriers to cross-border payments. It provides a number of consumer and business-facing products that allows payments to be settled efficiently, in a variety of currencies. Whilst the platform is built upon the principles of the old, fiat currency system, it has shown its desire to integrate into the new (crypto) money system by introducing crypto liquidity to its payment services. Collectively, this makes it an unusual payment platform that provides the best of both money systems. You can find the original recommendation here.
Surface Transforms (LSE: SCE) – this is car braking technology like you have never seen before. The carbon ceramic brake discs from Surface Transforms are a hallmark of efficiency, providing up to 70% in weight savings. Surface Transforms is the UK’s only manufacturer of carbon ceramic brake discs for automotive use, meaning that it has something of a niche market all to itself. The durability and smoothness of the brakes enhances the driving experience for all. You can find the original recommendation here.
Sam Volkering
Editor, Frontier Tech Investor
Elliott Playle
Junior Analyst, Frontier Tech Investor
