However, potential alone doesn’t cut the mustard in today’s market, and the share price is down a massive 84% over the last 12 months. Is this drop an overreaction or is it warranted?

Cutting-edge technology

ITM Power is headquartered in Sheffield, England, where it manufactures PEM electrolyser systems that help decarbonise various industries by harnessing the power of green hydrogen. These systems can be used by its customers for clean energy storage.

Hydrogen is the most abundant element in the universe. It’s light and can be stored for long periods. It emits only water and helps combat climate change. Proponents of green hydrogen say it can help decarbonise heavy industries such as steelmaking, chemicals and transport.

According to a Goldman Sachs‘ report, this gas could supply up to 25% of the world’s energy needs by 2050. The report predicts a $10trn dollar market for hydrogen halfway through this century.

That’s all well and good, but will ITM Power start producing any profits in the meantime so it’s still around in 2050?

The bad news

Nobody really knows. The company spooked investors last week after warning that it’s behind schedule in the development of its newest range of products. That means its full-year product revenue is likely to be towards the lower end of its guidance, which stands at £23m-£28m.

Due to the delays, the company needed more testing at its customers’ end to determine the correct warranty provisions for the new products. Management admitted it was unsure of its total warranty liability exposure, which “may result in a revision to EBITDA loss guidance”.

This means losses are probably going to be higher than expected this year. But the company is unsure by how much. This uncertainty was the root cause of the stock’s 32% drop the day all this was announced.

It hasn’t helped that long-standing CEO Dr Graham Cooley has announced he’s moving into a strategic advisor role. This leaves the company searching for a new leader at a crucial stage in its development. This is far from ideal.

Is this an overreaction?

Despite the risks relating to its warranty provision, I suspect this sell-off may be an overreaction. The green technology company still sees itself delivering 48MW-65MW of its products by the end of the year. And it actually has a backlog of customer orders. So I think the growth story is still very much alive.

Plus, the firm still expects to have £240m-£270m on its balance sheet at the end of the year. This means the company shouldn’t have to raise money any time soon. But the cash burn situation does remain cloudy for now.

Still, with a market cap of £502m after its 80% plunge, the stock now looks attractive to me. In fact, I’m ready to open a small starter position in it.

That 2021 high did mark the end of a massive bull run though. And even after the subsequent collapse, the shares have still more than doubled over the past five years.

This often happens with promising growth shares. We see an initial surge, then investors get cold feet and the price reverses. At that point, it can be a great time to get in for a second upwards run, often more strongly sustained. Are we at that point with ITM Power shares now?

High tech growth

ITM Power manufactures high-tech things called PEM electrolysers, for making hydrogen for energy storage. They can be used, for example, at times of peak electricity production. And unlike some other forms of storage, the ITM Power method is itself clean. Combined with renewable energy generation, we have a clean production and storage method.

Both the UK and the European Union are heavily into hydrogen use for energy storage and provision. And the UK government wants to double the country’s hydrogen production to 10 gigawatts by 2030.

Revenue growth

So the demand for ITM Power’s technology seems to be there. And with the latest full-year results in September, we saw steady revenue growth.

Back in 2020, the company reported £3.3m in revenue. A year later, that was up to £4.3m. And this year, it reached £5.6m.

So here’s what I think I’m looking at. It’s a company with a successful technology that could well be in great demand in the coming decades — we’re already seeing rising revenues now. And I reckon there could be some very tasty profits in the years ahead.

Profit

But that’s where things start to come unstuck for me. There’s no profit now, and there’s none on the cards in the next few years. Analysts expect revenue growth, yes. But nobody has offered any indication as to when profits might arrive.

I think there’s a very good chance it will happen, but my big concern is dilution. Who will own the bulk of the company when the day comes? It’s all down to how much cash the business might need to reach profitability, with any possible new share issues diluting existing investors’ holdings.

For now, it’s all about cash flow. At 30 April, ITM Power had a cash balance of £365.9m. And it reported cash burn for the year of £53.3m. That suggests there could be enough cash for nearly another seven years. But the latest cash burn was 40% higher than the previous year, and who knows how high it might go?

Verdict

I’m drawn to ITM Power as I see it as a promising long-term growth investment. And though I invest mostly for dividends these days, I do like the occasional growth stock too.

I just find this one too risky, because there’s no profit and I have no handle on when it might happen. For that reason, I’ll look elsewhere for my next growth investment.

Is now a good time to snap up the hydrogen stock for my portfolio? Or is this a growth stock to pass on? Let’s take a look.

Exciting growth story

There’s no doubt that there’s an exciting long-term growth story here. According to industry experts, the market for green hydrogen and its derivatives is expected to grow by around 40% per year globally between now and 2030 as the world makes the shift towards renewable energy. This means ITM should have enormous tailwinds behind it.

It’s worth pointing out that here in the UK, the government published a hydrogen strategy in August 2021. This set out a target to double the UK’s hydrogen production to 10 gigawatts by 2030. Meanwhile, last month, the European Commission proposed €3bn in funds to facilitate hydrogen development in order to switch from a niche market to a mass market product. This is all very encouraging.

Looking at analysts’ forecasts, ITM Power is expected to grow at a rapid clip in the years ahead. This financial year (ending 30 April 2023) revenue is expected to hit £37m, up from £5.6m last financial year. The following year, the group is expected to generate revenue of £86.7m.

High-risk stock

Having said all that, the fact is that ITM Power remains a high-risk, speculative stock. For starters, the company is losing a ton of money.

Last financial year, its pre-tax loss surged to £46.7m, compared to £27.6m the year before. A year ago, when central banks were pumping billions into the financial system, investors were willing to ignore a lack of profitability.

It’s a very different story today though as the cost of capital has risen dramatically. And this is reflected in ITM Power’s share price. It’s worth noting that analysts don’t expect the company to make a profit any time soon.

Secondly, the company has a history of failing to meet analysts’ forecasts. When I last covered ITM Power in May, analysts were expecting the company to generate sales of £16.5m for the year ended 30 April. Yet ITM ended up posting sales of just £5.6m for the year. That’s an enormous difference. So we can’t really trust the sales forecasts for the years ahead.

Third, the company is currently looking for a CEO. Last month, it was announced that Dr Graham Cooley has decided to step down as chief executive after 13 years in the role.

As for the valuation, it still looks quite high, even after the big share price fall. At present, ITM’s market-cap is £629m, meaning it has a trailing price-to-sales ratio of 112.

My move now

Given the high-risk nature of the stock, I won’t be buying it any time soon. In my view, there are better UK growth stocks to buy for my portfolio today.

So should I invest for recovery? Or might there be further bad news for ITM shareholders?

Disappointing results… and a new CEO

The firm’s share price fell this week after it released disappointing results and announced the replacement of its long-standing chief executive, although he will not be leaving altogether.

The results were not all bad. Revenue last year grew 30%. That is impressive, although it was still only £5.6m, which is fairly small beer for a company with a market capitalisation of almost £700m.

But while the topline results improved, the bottom line was more concerning. The company’s loss before tax ballooned 69% to £47m. That shows the financial challenges the company faces as it tries to scale up its business.

I see a risk it will continue to make sizeable losses in coming years, which could lead to further dilution for existing shareholders. ITM did end last year with a cash balance of £366m though, so liquidity is ample for the foreseeable future.

The company also scaled back the target production capacity of its main factory considerably, as well as putting plans for a second production facility on hold. The raft of bad news hurt the ITM share price.

Battery half-charged or half-empty?

The market reaction to the results suggested that investors have scaled back their hopes for what ITM can realistically achieve and thus its valuation.

I see the results as a mixed bag. Basically, they were terrible when it came to costs, although continued revenue growth is a bright spot. If the company’s valuation was not so high, I would see the sales trend as positive. But the high weight of expectations implied by the market capitalisation it can be easy to forget that.

The company needs to improve its financial model. Scaled-back production plans could be a sign that it plans to do that. However, they might also mark the beginning of a reduction of ambition for the firm, which I think could further hurt the future ITM Power share price.

Can the ITM Power share price recover?

If that is the case, ITM shares may never recover their former highs. It has a comfortable liquidity cushion but if it cannot make strong commercial progress before that runs down, investors may not want to stump up money for more shares.

In that sense, I think the high cash burn and reduced production targets could mean ITM will struggle to survive as an independent company in the long-term. If the company cannot find a path to profitability, or further investment, in the long term it could be doomed.

I may be wrong about that. Certainly, it is not yet doomed. ITM has promising technology, growing sales, a sizeable cash pile, and may also benefit from new leadership. But I see a lot of risks here, so will not be adding the shares to my portfolio.

Also, the news of CEO Dr. Graham Cooley stepping down after 13 years in charge and a new €140bn EU windfall tax on renewable energy firms’ profits contributed to the decline.

Looking at the ITM Power share price action, this fall is not sudden. The stock has plummeted 54.5% in a month and 71% in a year. Considering the amazing year energy stocks have had, this does not look good.

Here I will look at the results, what to expect moving forward and if I will make an investment in ITM Power shares after this historic collapse.

Is net zero just a dream?

The UK’s 2050 net-zero ambitions are lofty, considering how powerful fuel companies are today. The oil lobby is still extremely influential and holds the resources and infrastructure needed to make the transition possible.

But with the larger global economy in an uncertain position, the green energy transition is proving too expensive, causing a huge spike in bills for most people.

Any positives for ITM Power shares?  

Firstly, hydrogen fuel is the only net-zero energy source we know. Its by-products are reusable. It doesn’t remove oxygen from the atmosphere or add more water vapour, creating a balance.

ITM Power manufactures electrolyser systems and develops plants that generate this clean hydrogen fuel. It also operates seven hydrogen refuelling stations and a 1GW-capacity factory in the UK.

In 2022, the company saw its contract backlogs increase by 79% to 755 MW. As a result, revenue jumped over 30% to £5.6m, coupled with a significant increase in assets and inventory.

But the company recorded a gross loss of £23.5m in FY 2022. The board expects this figure to increase to £45m-£50m next year given the company’s high R&D budget.

Also, to complete current contracts, ITM Power would have to significantly increase production capacity. The company raised £250m to expand energy output to 5GW by December 2024. But the board stated in the release that achieving this target after the current energy crisis will be very tough.

Due to mounting expenses, the company’s plans to set up a new factory were scrapped. Now, ITM Power is working on improving output from its Bessemer Park factory to 1.5GW. But this could be too little given the growing demand.

Should I buy ITM Power shares right now?

As a potential investor, I see a lot of green energy stocks still carrying significant risks given the demand to accelerate development. ITM Power has this issue too. Yes, a lot of government grants and private contracts are being signed by the firm. But scaling up in the current economic and political climate will cost billions.

With the demand for cheap energy at an all-time high, I think green energy explorations will take a back seat over the coming months.

ITM Power shares are currently crashing and I never try to catch a falling knife. Once signs of a turnaround are clear, I would re-evaluate my position. But right now, I wouldn’t touch it with a 10-foot pole.

While the chances of avoiding a recession seem slim, Truss will be hoping that her premiership can deliver some fiscal stability over the coming years, and something akin to a ‘Boris bounce’ in the short term.

All UK businesses are grappling with an inflation rate running at 10.1% in the 12 months to July, which has contributed to the FTSE All-Share Index falling by 6.85% in the year to date.

But all good investors see opportunities in a market downturn, so I’m taking a closer look at the following UK shares that have taken a tumble in recent times, but the fundamentals remain strong, in my opinion.

Rio Tinto

The stock value of Rio Tinto (LSE:RIO) has fallen by over 10% in the past month, which can probably be attributed to its first half profit return of $8.6bn – a 28% decline on the same period last year.

However, Rio’s record earnings in the first half of 2021 were a result of high commodity prices at the time, especially iron ore, which accounts for almost 90% of the FTSE 100 firm’s earnings.

The iron ore price has halved since then, and impacted Rio’s profit accordingly. But the world’s second largest miner maintained a dividend of $4.3bn — its second highest half-year payout ever — and is looking to diversify its business with investments in cleantech commodities.

On Tuesday, Rio sealed a definitive arrangement to buy out Turquoise Hill Resources – its partner in the Oyu Tolgoi copper mine in Mongolia. The $3.3bn deal gives Rio greater exposure to a commodity of which demand is projected to increase 50% by 2040 as the clean energy transition develops.

ITM Power

Here is another London-listed company that has struggled of late. ITM Power (LSE:ITM) is down 25% in the last month and 54% going back six months. Not pretty reading for current shareholders in the renewable energy firm.

By way of introduction, ITM is focused on building key infrastructure for the nascent green hydrogen industry. The company has a notable partnership with ScottishPower which aims to develop a green hydrogen facility at an onshore wind farm near Glasgow, amongst other projects across Europe.

This net-zero fuel source should be a hit with climate-conscious investors, but that isn’t the case yet considering ITM’s falling share price. Seemingly, energy investors have reverted to funding new streams of traditional fossil fuels as the energy crisis continues to bite.

But taking a long-term view on the market is essential, and with the climate crisis likely to have an increasing impact on our lives, investors will surely pivot to renewable energy options once the crisis abates.

So here we have two companies that have suffered in recent months but are well positioned to take advantage of long-term investment trends.

And if Truss can stop the rot in the UK economy, we might even see Rio and ITM’s prospects brighten sooner than expected.

The UK, Europe, and the US have made renewable energy part of their ‘build-back-better’ plans for post-Covid economic recovery. Russia’s invasion of Ukraine has led many countries to rethink their future energy security. And, more broadly, hydrogen is seen as a key element in the global drive to reduce emissions from energy consumption and achieve net zero by 2050. Some analysts estimate the hydrogen economy could be worth more than $10 trillion by that time.

What are hydrogen stocks?

Hydrogen stocks are companies in the renewable energy industry that are primarily focused on the development, manufacture, or sale of hydrogen fuel technology, equipment, or services.

Given the potential size of the market, it’s not surprising to see oil giants, like BP, major utilities, like SSE, and chemical companies, like Johnson Matthey, in the early stages of incorporating hydrogen energy into their business plans. 

However, there are a number of firms focused exclusively, or almost exclusively, on the hydrogen economy. Some have been established for many years.

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Top hydrogen shares in the UK

Here are the UK’s biggest pure-play hydrogen stocks:

ITM Power

Founded in 2001, ITM Power became the first hydrogen company on the London Stock Exchange when it listed in 2004.

It has developed and manufactures proton exchange membrane electrolysers, which create green hydrogen using only renewable electricity and water. It has a partnership with Linde, the world’s largest industrial gas company, which also owns 16% of ITM’s shares. Other partners include oil giant Shell and leading European natural gas transport and storage operator Snam.

City analysts are forecasting a step-change in ITM’s revenue to over £50m in its 2023 financial year.

Key metrics:

• Market cap: £1,305m (as of 13 June 2022)
• Average daily volume: 3.3m
• HQ: Sheffield, UK
• Cash/debt: £364m/no borrowings (as of 30 April 2022)

Ceres Power Holdings

Also founded in 2001, Ceres Power joined the stock market a few months after ITM in 2004. It’s the UK’s other hydrogen stock with a market capitalisation in the £1bn+ category.

The company has developed solid oxide fuel cell technology for hydrogen production. Its strategy is to license its technology to global original equipment manufacturers and generate royalties as those manufacturers achieve full-scale commercialisation. Its partners include China’s Weichai Power and Germany’s Bosch. The former owns 20% of Ceres’s shares and the latter 18%.

Analysts have pencilled-in revenue of around £40m for Ceres in 2023.

Key metrics:

• Market cap: £1,010m (as of 13 June 2022)
• Average daily volume: 1.0m
• HQ: Horsham, UK
• Cash/debt: £245m/no borrowings (as of 31 December 2021)

AFC Energy

Founded in 2006 and listed on the stock market in 2007, AFC Energy is one of a number of UK hydrogen stocks currently capitalised in the £100m-£200m bracket.

The company has developed alkaline fuel cell systems that use hydrogen to produce clean energy. It has inked a number of strategic collaborations including with Swedish/Swiss technology multinational ABB, a leading provider of electric vehicle charge points and electrification and digitalisation technologies. ABB also subscribed for £3.25m AFC shares in a subsequent fundraising.

City analysts are forecasting AFC’s revenue to break through £10m for the first time in 2023.

Key metrics:

• Market cap: £169m (as of 13 June 2022)
• Average daily volume: 3.7m
• HQ: Cranleigh, UK
• Cash/debt: £55m/no borrowings (as of 31 October 2021)

Proton Motor Power Systems

Proton Motor Power Systems was formed and listed on the stock market in 2006 to fund the commercial development of research and pilot fuel cell projects conducted in Germany over the previous decade.

The company has developed a hydrogen fuel cell module integrated with an energy storage system to create an electric fuel cell hybrid system with a zero-carbon footprint. Historical revenue is running below £3m and there are currently no financial forecasts on the company available.

Key metrics:

• Market cap: £147m (as of 13 June 2022)
• Average daily volume: 0.4m
• HQ: Newcastle-upon-Tyne, UK
• Cash/debt: £2m/£84m (as of 31 December 2021)

Hydrogenone Capital Growth

In July 2021, Hydrogenone Capital Growth became the first hydrogen investment company listed on the London stock market. By the end of the year, it had deployed almost half the £105m funds it had raised at its flotation.

Around 9% of the capital (£10m) was invested in 19 international hydrogen stocks. It expects these companies to be the eventual leaders in the listed hydrogen market. Its UK picks were ITM Power, Ceres Power, and AFC Energy.

However, Hydrogenone’s performance will rest more on its larger investments in a smaller number of unlisted firms in the sector. For example, it’s invested £10m in Bramble Energy, which has pioneered a printed circuit board fuel cell solution.

Key metrics:

• Market cap: £122m (as of 13 June 2022)
• Average daily volume: 0.2m
• HQ: London, UK
• Cash/debt: £34m/no borrowings (as of 31 December 2021)

Clean Power Hydrogen

As mentioned, ITM is London’s largest and first-listed hydrogen stock, and a leader in proton exchange membrane electrolysers. By contrast, newly listed (February 2022) Clean Power Hydrogen is aiming to ramp-up commercialisation of membrane-free electrolyser technology. It says this technology, in combination with cryogenic gas separation, delivers very high purity hydrogen and medical-grade oxygen.

One analyst suggests the company could see revenue of close to £30m by 2023.

Key metrics:

• Market cap: £110m (as of 13 June 2022)
• Average daily volume: 0.1m
• HQ: Doncaster, UK
• Cash/debt: £0.5m/£0.4m (as of 31 December 2021)

Investing in US hydrogen shares

Despite a fair range of hydrogen stocks on the UK market, there are some larger enterprises in this sector on foreign exchanges. Here are the leading US players in order of market capitalisation:

• Plug Power
• Bloom Energy
• Ballard Power Systems
• FuelCell Energy

Are hydrogen stocks right for you?

There’s little doubt the hydrogen economy will increase to many multiples of its current size in the coming decades. With such a strong structural backdrop for growth, investing in hydrogen shares could be highly rewarding.

Having said that, stocks in the sector also come with higher risk. The businesses are at an earlier stage of development than some in other areas of the renewable energy market. All of the six UK hydrogen companies and four US names featured are currently loss-making businesses. In addition, they’re not forecast to generate positive cash flows any time soon, far less pay dividends. As such, these won’t be the right stocks if your primary focus is on income.

As the hydrogen market grows, and rival technologies are put to the test when the full competitive dynamics of the industry emerge, there are likely to be winners and losers. If you’re prepared to accept above-average risk in exchange for potential high capital returns from the long-term winners, investing in green hydrogen stocks might be right for you.

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How to value shares

Just because a price is rising (or falling) does not make it time to buy the share concerned, in my view.

Instead of looking just at price when building my share portfolio, I try to focus on the real value of a company. There are many different ways to value shares. For example, many investors use a price-to-earnings ratio while for growth companies a price-to-sales ratio is also sometimes applied.

The problem, though, is that ITM has no earnings, having made a loss of £28m last year. It does have sales, but they came in at only £4.3m last year.

The company almost did that much business in the first half of its current financial year alone, recording revenues of £4.2m. If it does as well in the second half, that would mean annual revenues of £8.4m. But the market capitalisation of ITM Power is a dizzying £1.3bn. So the price-to-sales ratio, using the £8.4m figure for the year, comes out at over 150. That looks very expensive to me.

Is the ITM Power share price good value?

But what if those approaches are not the right way to value a company like ITM Power? After all, it is a growth company still working hard to develop and commercialise its technology at scale. Such companies often spend heavily in their early days and struggle to make sales. The hope is that, as they learn and grow, sales can boom while the initial investment on research and development is spread over much larger revenues. That could be good for profits.

One way to value companies like that is to use a discounted cash flow model. That looks at the hard cash a company is expected to generate in future once it has paid all its expenses. That is then compared to the current company valuation, allowing for the fact that the value of money in future is lower than it is today, due to inflation.

But this makes it even harder to value ITM Power shares, in my view. The market is unproven and demand for the company’s product line is growing but remains largely unknown. It is also hard to know what the economics of production will look like in future. There are so many estimates involved in valuing ITM Power using discounted cash flow that I do not think I could come up with a useful valuation that way to inform my investment decisions.

If I cannot value the company, I do not know whether or not the ITM Power share price is good value. So I will not be buying it for my portfolio.

I think trading volume data is a very useful but underused tool that investors can access. When I look at this data over a specific period, it gives me an idea of market interest in a certain company or stock over time. It also shows me changing investor interest across sectors. And looking at the share price action over the given period tells me if the interest is positive or negative. 

Data

The usual suspects

Uk shares like Lloyds Bank and Rolls-Royce have been highly popular for several decades now. They rank consistently high on trading volume lists for the London Stock Exchange. In fact, banking and travel shares are evergreen sectors in the UK market, and shares like IAG, easyJet, Legal & General, and Barclays generally see consistently high investor interest. These are not surprising additions and speak to the popularity of these companies.

Unilever shares have gained positive momentum recently, up 12% since March 2022. I think the reemergence of this fast-moving consumer goods giant is worth watching as a possible addition to my portfolio in the near future.

But it should also be noted that high trading volume does guarantee growth in the market. Rolls-Royce shares are down a whopping 31% this year while IAG, Barclays, and Lloyds Bank shares are down 26%, 17%, and 12% respectively. This is largely due to the market correction after the pandemic. But the silver lining here is that once the market sees an uptrend, these UK shares could rise fast given the trading volume.

Recent trends

The UK government has imposed tough sanctions on Russian companies operating in the country in response to the invasion of Ukraine. Shares of Petropavlovsk, Polymetal, and Evraz, which have operations in Russia, have fallen over 80%.

The two trends I have identified with this data from Fineco Bank are the emergence of tech UK shares and the renewable energy push. I think that both sectors will become very important over the next decade. Darktrace‘s (LSE:DARK) eventful LSE debut saw its share price rocket nearly 300% in six months but then fall spectacularly. It is currently trading close to its initial listing price. But I still am optimistic about the sector in the UK. Many tech companies are emerging and gaining momentum in the country which I think is a positive.

But ITM Power‘s (LSE:ITM) repeated inclusion in the most-traded list for two years now is a sign that renewable energy shares are here to stay. And although it will be laboured given the volatile market conditions, I am buoyed by this development. I will look into UK shares in this sector closely over the next few months and pick a company with strong fundamentals for my portfolio.

Momentum in the hydrogen space

The first green stock I like is ITM Power (LSE:ITM). The business designs, manufactures, and integrates electrolysers to produce green hydrogen. It has a range of commercial potential uses, including as fuel. The only waste is water and green hydrogen can be stored in tanks for long periods of time — it’s easy to see why people are excited.

ITM Power is really starting to get up and running. The stock won a project grant from the German government in January. It has secured investment from the UK government last November for the first phase of an ongoing project at the Whitelee Windfarm hydrogen facility.

The share price is down 11% over the past year, but up 50% over two years. I think that with momentum from the recent investments and the prospect of increased production in the next year or so, the share price could really start to take off.

There is some risk that the market finds issues with green hydrogen in practice, but for the moment I think it’s a viable form of clean energy for the future.

A green investment stock

Another company that fits the bill is Greencoat Renewables (LSE:GRP). I think this is a no-brainer buy not for share price growth, but rather for dividend income in my portfolio. The company invests in wind and other renewable energy projects in Europe, with the aim of distributing returns via dividends. Currently the dividend yield sits at 5.22%, with the share price up 1% over the past year.

Wind energy is an area of high public and private investment, and one that I think will continue in the future. I like the fact that Greencoat has project in different countries in its portfolio. Although there is a lot of exposure in Ireland, it also has projects in France, Spain, Finland, and Sweden. This should diversify business streams in the future, helping to mitigate any potential problems.

I do know that getting wind projects up and running can be very expensive. This might make it tough for Greencoat to step up to the next level as private investors might favour cheaper green energy options. However, I think there is enough funding already in this space to ensure the dividends stay generous and consistent.

I think that both green stocks will perform very well in the future given the sector. Therefore, I’m wanting to buy shares in both companies at the moment.