Gelion (LON: GELN) shares have had an interesting time in their only four months on the London Stock Exchange. The company floated at 153 pence, ran up to 270p and Gelion shares have since dropped back to around 100p which is where they’ve been grumbling along for the past couple of months. There was, that is, that excitement about a new and interesting company hitting the market and then, perhaps, a more mature consideration of the prospects.
As a business, Gelion has interesting possibilities. The basic idea is that of a new, or perhaps improved, battery chemistry. Not a wholly radical new one, a refinement of extant standard technologies perhaps. That basic idea being that lithium ion batteries might be made more efficient by the use of lithium-silicon and lithium-sulfur gels. Gel – ion, geddit? This could well be true as well, there are many possible refinements to the basic idea that might increase range, or the number of cycles that a battery is useful for.
It’s also possible that the more esoteric ideas about new battery chemistries might be worthwhile – Gelion looks at zinc-bromide for example. This won’t be anything to do with EVs – far too heavy – but might work for grid-based stationary batteries.
Gelion has presented their interim results and they haven’t moved the shares off their current plateau around 100p. The thing about those results being that they’ve not really told us that much that we didn’t already know. For example, the lead is that they successfully floated on AIM. Well, yes, we know that, that’s why we’re looking at the results. They’re well capitalised – yes, we know that, they raised capital in the float.
Given that the float was at the end of November, the accounts are up to Dec 31, this all isn’t surprising. They’re supposed to have told us how things were going at floatation time.
Which brings us to that great truth about information and stock markets. It’s new news which moves share prices. Things we already know are already in prices, to change prices requires the announcement of things we don’t know. Or, obviously enough, a change in investor views concerning that old news.
For a company like Gelion, one pushing new technologies out into the marketplace, that new news which will move prices is probably going to be around signing up users of the new technology. As and when substantial arrangements with battery makers are announced then we could well see substantial movement in that Gelion share price. The absence of such news will likely leave the shares grumbling along as they are.
There is undoubtedly a market for new and better battery technologies. But whether it’s possible to make money out of the specific ones to hand depends on getting people to actually use that specific one. Announcements of actual customers is what’s needed at Gelion, therefore.
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Tim Worstall is a freelance writer specialising in economics and the financial markets.