Pure Hydrogen (ASX:PH2) share price surges 30% in a month. Here’s why

Pure Hydrogen shares have delivered outsized returns over the last month.
The post Pure Hydrogen (ASX:PH2) share price surges 30% in a month. Here’s why appeared first on The Motley Fool Australia. –

The Pure Hydrogen Corporation CDI (ASX: PH2) share price has blown up over the last few weeks.

Whereas the S&P/ASX 200 Index (ASX: XJO) has slipped 1.6% into the red over the last month, Pure Hydrogen shares have jumped 30% into the green.

Let’s see what’s behind this momentum.

What’s fuelling the Pure Hydrogen share price lately?

The Pure Hydrogen share price has been on the move after the company made two major announcements in the last month.

In early August, the company advised it had delivered “excellent preliminary results” at its Serowe 3 coalbed methane (CBM) gas project.

For reference, the Serowe 3 CBM gas project is a joint venture with BotsGas on the exploration of CBM gas in Botswana, Africa.

Drilling at the site has encountered 41 metres of “interpreted gassy coal seams” and subsequently reduced the risk of commercialisation for the project. In addition, the total thickness of the coal “is more than double the pre drilling estimates”.

Then in late August, the company advised that its Serowe 4 well is to be drilled in mid-September and that “short term flow testing” of its Serowe 3 well will occur prior to this.

It also said that “processing of a new logging method” used in the Serowe 3 well had shown “absorbed gas, free gas and indications of permeability” in several coal target seams.

Speaking on the update at the time, Pure Hydrogen CEO Scott Brown said the company is “encountering much thicker gassy coal seams than (it) first expected” at Serowe.

“We expect a lot of new flow across September and October on Serowe’s progress where we are free carried,” Brown added. “Work is also advancing favourably across our hydrogen portfolio in Australia and we look forward to sharing more progress very soon.”

In the absence of any further price-sensitive news for the company over the last few weeks, it appears that investors are buying Pure Hydrogen shares on these two updates – if not for speculation on the expected new flow as well.

Pure Hydrogen share price snapshot

The Pure Hydrogen share price has climbed 190% this year to date, to be one of the ASX’s major performers. It has also gained 305% over the last 12 months – a nice outsized return for investors.

Both of these results have far outpaced the broad index’s gain of around 25% over the past year.

The post Pure Hydrogen (ASX:PH2) share price surges 30% in a month. Here’s why appeared first on The Motley Fool Australia.

Should you invest $1,000 in Pure Hydrogen right now?

Before you consider Pure Hydrogen, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Pure Hydrogen wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

Why AGL, BHP, IRESS, & Lendlease shares are dropping

AGL (ASX:AGL) share price crashes 7.5% to new 20 YEAR LOW!
Why the Renascor (ASX:RNU) share price is rocketing 26% today
Top brokers name 3 ASX shares to buy today

Starpharma (ASX:SPL) share price surges 5% on United States patent news

The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!