Nel ASA stock: Far from it!

April was a disappointment for investors in Nel ASA. On the 5th of the month, the shares of the Norwegian hydrogen specialist, after starting at 1.55 euros, improved to 1.74 euros. But in the end, a meagre 1.38 euros remained, a minus of 20 per cent. One might think that things should be better in May. But far from it, the Nel share fell further on the first day of trading, leaving the market on Monday at only 1.33 euros. This can hardly be explained rationally.

Nel ASA looks to China

For April was peppered with new order announcements by Nel ASA, plus the official opening of the new plant in Her√łya, several buy recommendations by analysts and, most recently, news of joining a promising network – which has its sights set on business with China. The purpose of the “Nordic Industry Centre”, according to Nel, is to “create an arena for knowledge exchange, project development and acceleration of Norwegian companies that want to participate in Chinese mega-projects and expand their business in China”.

The Nordic Industry Center was initiated by BI Norwegian Business School and Kongsberg Innovation, according to the statement, and is based at Tsinghua University in Beijing, China’s leading university, according to Nel. Nel ASA ( Daily Current Rating ) already concluded a cooperation agreement with the Nordic Industry Center in December last year, which was officially signed before the weekend at the first meeting of the advisory board, which had to be postponed several times so far due to Corona restrictions.