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Shares of Powerhouse Energy Group PLC (LON: PHE) are up 12.2% last week along with other sustainable energy companies, and it seems like the downtrend could finally be over, but is it?
PHE shares are down 53.1% in 2021 amid a broader selloff in the sustainable energy and hydrogen power sector. Still, it appears investor sentiment towards the entire sector has shifted in the recent past.
Powerhouse Energy generated hydrogen fuel from waste plastic and recently signed a contract with Peel NRE to build the infrastructure to supply the hydrogen generated from its facilities across the UK.
The waste to hydrogen company recently hired a chief technology officer (CTO) for the new role that will be in charge of the engineering design of its facilities and probably the future rollout of its facilities.
Powerhouse Energy’s future seems bright, but there is still some uncertainty about the building of the refuelling stations, given the agreement with Peel NRE is just a letter of intent (LOI).
There seems to be a resurgence within the UK’s hydrogen sector, given that other hydrogen power companies such as Ceres Power have witnessed a resurgence this week as the sector turns a corner.
Meanwhile, a week’s rally is not enough to declare that a new rally phase has begun. The rally has to continue for much longer, allowing the stock to recoup most of its previous losses. Still, the latest rally is a good sign.
*This is not investment advice.
Powerhouse Energy share price.
Powerhouse Energy shares are up 12.2% over the last week. Is the downtrend over?
Powerhouse Energy shares are traded on the London stock exchange's AIM market (the alternative investment market), which is the submarket specifically for smaller companies. AIM stocks are attractive to investors as they have tax advantages and smaller companies have the potential to benefit from rapid growth. But are Powerhouse Energy shares the best buy? Our stock market analysts regularly review the market and share their picks for high growth companies
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