Why HEAT could warm your Portfolio

marc

Written By: Marc Challande

Published August, 26th 2021

Hillcrest Energy Technologies Ltd. (HEAT.CN), a company focused on green energies,  is adapting to the accelerating global energy transition and plans to become an early leader  in the electrification of Canada and the world. If you had invested in HEAT a year ago, you would have a 242% return on investment. BUT it is not too late to jump in this stock and we explain you why.

HEAT

A Company involved in the right Market

Hillcrest Energy aims to be a pivot to switch the production of energy fuels and the adding of clean energy and e-mobility technologies from concept to commercialization. With the governments’ will to change fossil energies to green energies, the green energy is now valued at US$1.4 Trillion and this can only go up. Recently, BlackRock ($7 trillion fund)’ strategy change as the CEO Larry Fink, who has said climate will “fundamentally reshape finance.”

Hillcrest doesn’t have one but several pipelines: 

OIL OPERATIONS

Hillcrest commenced production of oil by restoring four shut-in oil wells in Saskatchewan during 2019. They currently have 4 oil producers, a water disposal wall and production facilities which include an integrated water treatment and injection system.  The field currently produces 100 barrel per day. 

But now, you could question why a green company produces oil and it is totally understandable. HEAT intends to use the cash flow  to accelerate the Company’s transition from fossil fuels to the development of clean energy technologies.

SYSTEMATEC COLLABORATION

Hillcrest entered in partnership with Systematec, a German company, for a 5 year deal. Systematec is a leader in power electronics engineering and electromechanical component design for the German automotive industry. This smart partnership will enable Hillcrest to leverage their electric machine control software and develop high-value power electronics and electromechanical IP and technology for commercialization (which will be solely under the name of Hillcrest).

HEAT

ELECTRIC MACHINE CONTROL SOFTWARE

With Anigo Technologies now under Hillcrest’ banner, they  own a high-performance electric machine control software and employ the IP’s inventor, Ari Berger, as the Company’s Chief Technology Officer. This software IP is specifically designed for use with electric motors, electric generators and other integrated power systems

ALSET INNOVATION

With its US Licensing Agreement with Oropass Ltd. enabling development, licensing, and marketing of US patented electricity generation and electric motor technologies, it provides exclusive dealing rights for the licensed technology including all current and future technologies created by the owner of the IP and enables the Company to license, co-develop or implement joint ventures for the technologies through its wholly owned subsidiary, ALSET.

HEAT

How are their financials ?

Hillcrest handles their financials pretty well. And it’s a small word. They got rid of the outstanding debt and increased in base revenues, have $5M equity facility in place. Let’s not forget they have Ari Berger ( who was formerly at the helm of EXRO as CTO. The company is currently valued at CAD$365.351M) as CTO of Hillcrest who will for sure drive the company upward.

Talking about fundamentals, the company is currently traded at a Price/Sales ratio of 62. Despite the number seems high, the market cap is at CAD$40M AND investors don’t mind paying for a premium as Hillcrest showed a great management with the right acquisitions and great products incoming.

The total number of  shares represent 225.32M for almost 10% held by insiders. According to their last earnings report, they have produced CAD$797,027 compared to CAD$39,554 the prior year, proof the company is generating more and more revenues. With these key data, the company shouldn’t dilute their shares as they can generate cash flow.The Company has a balance of 38,171,534 warrants with a Weighted Average Exercise Price of $0.10. The next Warrants will expire on September 1, 2022.

Bottom Line

Hillcrest is at the right place, in the right market, with the right team and products. They generate immediate revenue with their oil facility, will do acquisitions and partnerships in the near term and do IP development and commercialization for the long term. Different streams for a common goal. This is why HEAT could definitely warm your portfolio in the future. 

This article solely expresses the opinion of the writer which might be disagreeing with the other writers of Money,eh?

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