Vision Hydrogen, now Vision Energy, puts hope in inventory division

Vision Hydrogen Corporation (OTCMKTS:VID) is a renewable energy company primarily focused on the development of clean hydrogen production facilities that supply clean hydrogen to gas and fuel manufacturers and marketers. electricity. They also work with consumers in the industrial, heavy and marine transportation sectors.

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Earlier this month, Vision Hydrogen Corp began a steady and rapid ascent of the market, rising from $5 on Monday, October 31 to a price of closing $10.00 by Friday November 4th. Although the stock is thinly traded, Friday's dollar volume rose 25% to $1.7 million. This is just the most recent action of the same stock which has risen from $2.50 in December 2020 to over $50 next month.

Now known as Vision Energy Corporation (OTCMKTS:VIDD), the stock is currently trading at $14.79 with a market valuation of $420M.

Strategic stock split should boost stocks

This recent and dramatic change in momentum came after the energy company announced the approval of a 1-for-2 stock split on November 7, 2022. The statement also included the intention to change its name from "Vision Hydrogen Corporation" to "Vision Energy Corporation."

As of November 8, common stock of Vision Energy Corporation currently trades under the symbol VIHDD, denoting forward split, for the first 20 days. Effectively, then, by the end of the month, they will receive a new stock symbol.

As of now, we know that the company's new common stock CUSIP number is 92837Y200. This Forward Split results in an increase in common shares outstanding, from 21,048,776 to 42,097,552. It will also double the number of authorized shares, to 200,000,000.

Expansion of hydrogen operations is promising

At the same time, Vision Energy Corporation also provided an update on its pioneering Green Energy Hub project in the North Sea port of Vlissingen, the Netherlands. Through Vision Energy's wholly owned subsidiary, Evolution Terminals BV, has now reached the advanced stages of planning the construction and delivery of the North West's first import, storage and handling terminal. of Europe designed exclusively for hydrogen carriers, renewable energy products and low carbon products. fuels.

The substantial redevelopment will enable Evolution Terminals to adopt industry-leading sustainable operating practices to reduce emissions from terminal operations. It will also introduce a green and renewable energy business model in the Netherlands at the appropriate time.

Why split the stock now?

On April 1, 2017, VIHD reached an all-time high of $32.50 only to IMMEDIATELY fall back to a new low of $5.207 on November 1, 2018. The stock quickly rebounded and peaked, again, at 11, $50 on Jan 1, 2018. It plateaued a bit at $10 before another dip and bounce, then flattened out to around $2.05 in the second half of 2020. Fortunately, the stock climbed to $14.75 at the end of this year, to start another decline to reached its most recent low of $2.375 on September 1, 2022.

Net income was negative for the majority of the company's businesses. This is particularly noteworthy as net profit increased from -$478.4K in 2016 to +$8.9K in 2017 and then fell back to -$554.0K in 2018. This translated into a profit per share (EPS) of -$0.17, $0.00 and -$0.07. , respectively.

At the same time, revenues increased: from 20.9k in 2016 to 7.5M in 2018. Gross operating expense income also increased from 418K to 2.0M between 2016 and 2017, but then stabilized at 1.8M in 2018.

Observing all of this, it makes sense that Vision Hydrogen is considering a spin-off. With the decline they saw in the last year that it could give them a fresh start.

A complicated position in a complex industry

Going forward, it's hard to say how VIHDD will fare against its peers and competitors, but its current state certainly implies that the stock has plenty of room for growth. Yes, its current value is still around $15 - roughly the all-time high...