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This FTSE 250 progress share has been rocketing like no different currently — up 421% within the final six months. Astonishing growers like this one often solely seize consideration after the principle motion, but it nonetheless appears to have gasoline within the tank after leaping 40% in November. That makes it one of the best performer on the entire FTSE 250. Once more. The inventory in query is Ceres Energy Holdings (LSE: CWR). The query now’s apparent – can it preserve doing this?
My very own portfolio is constructed round FTSE 100 shares, however I’ve been looking out for a smaller, faster-growing firm, and Ceres is an astonishing stand out. Naturally, that additionally ramps up the chance.
Ceres shares have the facility
It’s a British clear vitality know-how chief specialising in strong oxide gasoline cells for hydrogen manufacturing and environment friendly energy technology. Its tech places it on the forefront of the decarbonisation push, with the potential to deliver inexperienced hydrogen manufacturing prices nearer to fossil gasoline ranges in a couple of years.
The story gathered momentum up on 28 July when its South Korean associate Doosan Gasoline Cell started mass manufacturing of strong oxide gasoline cell programs utilizing Ceres’ proprietary know-how. That was a significant milestone for the partnership and recommended that Ceres’ tech is prepared for critical industrial use. Analysts count on royalty funds from Doosan to construct in 2026.
Then on 5 November, Ceres signed a producing licence settlement with Weichai Energy, a worldwide gear producer based mostly in Shandong, China. The deal provides Ceres an additional foothold in Asia-Pacific and will pace up industrial deployment due to Weichai’s familiarity with the know-how. No less than one additional licence associate is anticipated subsequent 12 months.
Funding dangers and rewards
The potential rewards are large and there’s an AI hyperlink too, as Ceres goals to match energy-hungry knowledge centres with versatile and greener energy options. With a market cap of simply £710m, the chance right here may very well be large.
Nevertheless, buyers must be courageous to think about shopping for at present after such a robust run. Progress shares can construct momentum of their very own till the whole lot goes south. Ceres appears to be like fully binary. Both the tech scales efficiently, the licences multiply, and royalties circulate, or some hitch derails the whole lot. Additionally, offers with Chinese language corporations carry threat, significantly round mental property. Many Western corporations now combat shy of the nation.
I believe somebody investing at present ought to watch for brand spanking new licence offers and the primary royalty revenues from Doosan and others. That’s when this share might transfer from a speculative spike to an actual earnings story. It’s not for the faint-hearted.
Buyers may think about shopping for at present, all of it is determined by their urge for food for threat. However they have to additionally settle for that the massive positive aspects could have already been made, and the scope for large potential losses if the shares retreat. It’s all an excessive amount of for me. I’m arriving to this social gathering simply too late. For now, I’ll sit on the sidelines and watch.
