After months of listening to people cast aspersions about Hypersolar (HYSR), either through emailing me or what I have seen on various messages boards, a very important leg of the journey has been reached today. After surpassing the threshold to split water into hydrogen and oxygen (1.23V) we really do feel that Hypersolar’s best days are ahead. This announcement cannot be overstated.
If I was a company looking to invest in this kind of science, either for pure profit motive or because I was in the Hydrogen fuel space, I would begin an analysis of Hypersolar in earnest. With today’s announcement they have shown the world that they are a bit more than just a good idea. I see collaborative partnerships ahead which can advance the science (hopefully to commercialization more quickly with only .25 Volts to go) and I see the real potential for a larger name in the space to invest in them. One point occurs to me as I consider that. As part of any larger entity’s expansion efforts, the best of these companies take an interest in broader, more far reaching but theoretically plausible ideas. It is a small part of their portfolio and they only invest in those which are most promising but they do it and are often rewarded for such efforts with an uptick in valuation.
PLUG Power (PLUG) is a company I have written about often. I’m a big believer in what they have accomplished over the past twelve months and am bullish on their future prospects. Have they had growing pains and do they still misstep at times? Absolutely. But their growth is dynamic and is now undeniable. Hydrogen solutions are important to their future because originating production could ultimately save them tens of million of dollars. An investment in Hypersolar would be a drop in the bucket for someone like Plug (and I am not saying it is appropriate for Plug but it may be for any of dozens of companies like Plug) and just the credit they may receive for such an investment would likely pay for that investment many times over. Smart companies and executives know this. It costs them almost nothing to field a race of ten promising horses. If just one of those horses crosses the finish line it could be worth a hundred fold return on all of them. It is just smart business. No, I’m not suggesting any company should take a flyer on a lark. But today, December 9, 2014, is the day that I believe the wider investment community should fully realize that Hypersolar is no lark.
As always, please do your own due diligence or consult a trusted financial advisor before investing in this or any other equity.