It’s been a tough start to 2023 for shareholders of Linde (LIN). The industrial gas giant was a relative winner in 2022 with its stock declining roughly 5% compared to the S & P 500 ‘s drop of around 19.4%. But the new year has not been so kind with three straight down sessions, including nasty pullbacks Tuesday and Thursday. For such a high-quality company with a track record for delivering consistent, double-digit earnings growth, this is not the stock price performance we have come to know for Linde. Let’s take a look at some of the recent news that’s negatively impacting the company to figure out if this pullback is a buying opportunity. Russia freezing Linde assets First off, while U.S. markets were closed to observe the New Year holiday, Reuters reported Monday that a Russian court froze about $488 million of Linde assets. The legal action was at the request of a Russian joint venture that Linde stopped working on. The halt in the business relationship was done to comply with European Union sanctions after Russia invaded Ukraine. Long story short, Linde was prepaid $1.8 billion for work on a project, and Russian energy giant Gazprom is suing Linde to get that money back. It’s all pretty technical, but here’s what an analyst at BMO Capital Markets said about the news: “High level, we view this as a negotiation tactic tied to LIN’s suspension of the project and the eventual settlement of accounts. As a reminder, LIN holds ~$1.8B of cash/payments from Gazprom and its partners for the Ust-Luga gas complex (LIN lists this as a liability on its bal sheet). With LIN having stopped work on the project, it will be expected to return the $1.8B of proceeds minus the hours worked and the value of the equipment (both currently being negotiated). The freezing of the assets and valuing them at $488mm is simply part of that ‘negotiation.'” We’re not in the business of trying to predict the legal outcome or how negotiations will go, but what you do need to know is that Linde lost about $3.9 billion of market value Tuesday, as traders in the U.S. got their first chance to react to the news. That’s far beyond the value of what Linde was paid to complete this project. Therefore, we see the recent pullback as an overreaction. The next question is does any of this matter to future earnings? The answer here is no. Shortly after Russia invaded Ukraine, Linde suspended business in Russia and announced plans to scale back operations. This means Russia has zero impact to forward earnings per share; it was excluded from Linde’s full-year 2022 guide and should not be factored into any analyst estimates for 2023 earnings. Again, we think the news was an overreaction. Upcoming Frankfurt delisting vote There is a second factor likely contributing to some of Linde’s declines over the past few days and it is harder to quantify. It relates to management’s proposal to delist from the Frankfurt Stock Exchange. Linde is currently listed on two different stock exchanges: the New York Stock Exchange in the United States and Germany’s Frankfurt Stock Exchange. Through extensive analysis, management concluded that a single stock listing in the U.S. could expand Linde’s valuation , which would benefit current shareholders. The voting on this proposal ends on Jan. 17 and should be known the day after at a shareholders’ meeting. If Linde shareholders approve the German delisting — and we think they will — some of the European investors and index managers who own the stock will be forced to sell because of restrictions. For example, some managers may be limited to only owning European listed stocks or track the German blue-chip DAX index. If Linde only trades on a US line, they can no longer hold it. While this forced selling could stretch out, what we think is happening Thursday, in the absence of any fundamental news, is that European investors trying to get ahead of the results of the vote. Declines in Linde’s industrial gas peer Air Products and Chemicals (APD) are relatively in line with the broader market selloff of more than 1% on the major benchmarks. Linde slide Thursday was more than 3%. Bottom line So, what are we doing with the stock? When we wrote our delist story in November, we said if there is a pullback related to so-called forced selling closer to the key dates, we would treat those declines opportunistically and look to buy. Linde is the type of company that can continue to perform well in a slowdown because of the resilience of its gas-selling markets, its pricing power, and productivity initiatives. Linde also has a huge opportunity to support the advancement of clean energy initiatives promoted through the U.S. government’s Inflation Reduction Act. And as we mentioned above, the Russia legal issues won’t have a material impact on Linde’s overall business. With some of the selling beginning to flush out but no changes to our positive long-term fundamental view, we are getting closer to upgrading our rating and potentially adding to our position. Linde is scheduled to report its fiscal fourth-quarter earnings on Feb. 7. While that may feel like a lifetime from now, at some point the fundamentals will matter again and all this technical pressure will take a back seat. We’re looking at a price at or below $300 to upgrade Linde back to a 1 rating as we have found that the company typically likes to ramp up its buyback program at those levels. We should note that Linde’s buyback is temporarily on pause until the upcoming shareholders’ meeting. It can resume repurchases afterward but under a predetermined plan until earnings. In our system, a 1 rating means we view the stock as a buy. Linde is currently a 2 rating, which means we’re waiting for a pullback to consider buying. (Jim Cramer’s Charitable Trust is long LIN. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
A liquid hydrogen tanker truck taking a fuel delivery at the Linde hydrogen plant in Leuna, Germany, on Tuesday, July 14, 2020.
Rolf Schulten | Bloomberg | Getty Images
It’s been a tough start to 2023 for shareholders of Linde (LIN).
Tesla and Rivian have been embroiled in a lawsuit in which the former accused the latter of having stolen battery technology by poaching Tesla employees.
It sounds like the two automakers are finally about to settle the lawsuit, which has been going on for 4 years.
When Tesla filed the lawsuit, it wasn’t clear what trade secrets Tesla was claiming Rivian had stolen. However, we noted that the employees listed in the lawsuits were two recruiters, an EHS manager, and a manager of Tesla’s charging networks.
The automaker claimed that these employees brought “documents consisting of highly sensitive trade secret, confidential, and proprietary engineering information” when they went to work for Rivian.
Over a year later, we now learn that Tesla had notified the court that it expects to file to get the lawsuit dismissed after reaching a conditional agreement with Rivian. The company didn’t disclose the details of the settlement (via Bloomberg):
Tesla didn’t disclose specifics about the agreement in a court filing, but told a California state judge that it expects to seek dismissal of the case by Dec. 24 upon satisfactory completion of the terms.
Neither Tesla nor Rivian have commented on the reported settlement.
While Tesla has claimed that it somewhat open-sourced its patents, we have previously noted that it’s not exactly the case. Tesla claims to let other companies use its patented technology as long as they themselves don’t sue them over patent rights.
And in this specific case, Tesla alleges that Rivian has specifically hired employees to steal technologies. Again, Rivian has denied the allegation.
Electrek’s Take
The terms are unknown, but in similar cases, it often involves things like some level of access to make sure that no proprietary technology is being used or has been used.
The lawsuit is not exactly clear, but based on the timeline and the allegations of “next-gen batteries”, Tesla could have been talking about its 4680 battery cells, although those are cells. It could also be the structural battery pack.
French infrastructure specialists Proviridis have partnered with EVSE manufacturer Kempower to deliver a novel, underground charging solution for electric semi trucks designed to easily integrate into existing truck depots.
By installing its high-powered charging cabinets underground and integrating the charging cables into a solid metal pipe, Kempower and Proviridis have been able to make room for high-powered charging points in an existing truck depot that didn’t have enough space to install either conventional EVSE or overhead “drop lines.”
For the pilot, the metal pipe is painted in a striking yellow color to make it easier to see while maneuvering the lot, and keeping the dispensers themselves more protected than conventional concrete bollards. The 600 kW power cabinet is positioned a few yards away – a typical space-saving Kempower solution – and connected to the charge points by underground cable.
Proviridis believes their solution provides enough of a competitive advantage that fleet buyers looking to electrify will be eager to give it a try.
“The product is durable across a wide spectrum of temperatures and conditions, requires minimal ventilation, and can cater for a wide range of customer needs,” explains Olivier Verdu, Technical Director at Proviridis. “These are features which perfectly place the Kempower solution for this type of charging configuration in a logistics environment.”
In honor of Black Friday and Cyber Monday, eBike specialist Buzz Bicycles is offering an exclusive discount for Electrek readers on its Centris Class 2 Folding Bike.
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Buzz Bicycles is back with an exclusive new deal
Buzz Bicycles has been a mainstay on Electrek for a few years now, as we have covered several of its electric bikes, which suit riders of all skill levels and help them “Buzz through life.” Buzz is an omnichannel eBike brand that prioritizes direct-to-consumerism and has found success in its mission to deliver ultimate transportation solutions at an excellent value for its growing base of eBike enthusiasts.
The company strives to deliver riders a “Wow moment,” which is usually brought on as they feel the pedal assist function kick in. This feature delivers all you need to conquer hills and longer rides while enjoying new adventures with friends.
The Buzz team has utilized decades of industry experience into its portfolio of eBikes, all conceived and designed in Dayton, Ohio. The company, which operates under the United Wheels umbrella alongside brands like Huffy Bicycles, Niner Bikes, and Batch Bicycles, has adopted an ethos that the freedom of riding should be fun and accessible for everyone, no matter what adventure lies ahead.
By leveraging the global presence of its parent company, Buzz Bicycles can make good on its promise to deliver affordable eBikes that are comfortable, powerful, and safe, much like the Centris Folding eBike, which is as versatile and compact as it is fun. The exclusive deal Buzz Bicycles is offering on the Centris makes it even more fun. You can take advantage of it below.
But first, you’ll want to learn about the capabilities of this foldable eBike to truly understand its value, as well as what accessories are available to level up your purchase.
The Buzz Centris is an easy to ride foldable eBike for all
The Buzz Centris is a Class 2 Folding eBike built for comfort and convenience no matter where you take it. At full size, the Centris’ step-through frame offers a low step-over height of just 16 inches, perfect for riders of all sizes, enabling easy transitions from ground to saddle for its riders.
When you’re not riding, the Centris from Buzz Bicycles folds neatly to 34 inches in length and 22 inches in height, making it easy to store at home or to carry in a vehicle on the way to your next ride. Furthermore, the assembled bike only weighs 68 pounds, making it easy to transport.
You can easily navigate tougher terrain on the Centris thanks to the eBike’s 20″ x 4″ knobby tires and front suspension. The bike is powered by a 48V, 500-watt-hour (Wh) battery pack that can propel it to a top speed of 20 mph for an all-electric range of up to 40 miles on a single charge.
Additionally, this folding model from Buzz Bicycles comes equipped with both a front and rear rack, offering versatile cargo-carrying options so you can customize your ride with a variety of Buzz accessories.
Like all Buzz eBikes, the Centris is tested and deemed compliant with the UL2849 standard. This standard covers the entire electric bicycle system, including the motor, battery, controller, and charger, offering the highest safety standards for added peace of mind.
The Centris Class 2 folding bike from Buzz is available in two colors: Gloss White or Matte Black. This $1,199 eBike is currently reduced to $899 – and you can score an additional $200 off with this exclusive promo, but only for a limited time.
With the purchase of any Buzz eBike, including the Centris, you are guaranteed the following:
10-year limited warranty (lightweight aluminum frame protected for full 10 years)
2-year limited warranty (electrical components covered by 2-year warranty for peace of mind)
6-month limited warranty (additional bike components protected by a 6-month warranty)
Are you interested in the Centris from Buzz Bicycles? You’ve come to the right place. Starting today, while supplies last, you can take advantage of an additional $200 off the sale price by using promo code “ELECTREK200.“ That’s a $500 discount in total!
We highly recommend perusing Buzz’s entire lineup of products. They are designed for commuters and casual riders, with technology and features that help you quickly feel comfortable riding. If you are new to the world of E-transportation, Buzz Bicycles is the brand for you.
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