ITM Power: should I buy it for my Stocks and Shares ISA?

Home   /   ITM Power: should I buy it for my Stocks and Shares ISA?

first_imgSimply click below to discover how you can take advantage of this. See all posts by Tom Rodgers Image source: Getty Images. I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. ITM Power (LSE:ITM), which designs and manufactures hydrogen energy storage, has become one of the UK’s most popular shares in 2020 and 2021. Hargreaves Lansdown investors are buying the stock in droves. ITM Power currently sits in the top 10 list of the most bought UK shares among the likes of easyjet, Bitcoin miner Argo Blockchain, electric car giant Tesla and FTSE 100 stalwart Lloyds Banking Group.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Since November 2020 it has added 150% to its share price. The question for me is: am I too late to buy this stock and make gains? At a price of around 630p should I add ITM Power to my Stocks and Shares ISA?ITM Power is a future playLet’s look at today’s valuation for the South Yorkshire firm. The share has amassed a market valuation of £3.6bn on reported full-year 2020 revenues of just £3.29m. Losses over the 12 months to 30 April 2020 rocketed to £29.4m, from £9.35m the previous year.It’s not unusual to see companies build very large market caps even while reporting many years of losses. Elon Musk’s Tesla, for example, has only reported a single period of profit on its way to becoming the seventh most valuable company on earth. Investor appetite for the electric vehicle pioneer supports an $830bn valuation today. Hydrogen fuels net zero boomHydrogen could form a key part of the world’s net-zero-carbon future. So ITM Power could profit heavily.But there are significant risks. Recent research by the Edison Group, for example, highlights that while hydrogen stocks have soared, there are pitfalls along the way. It writes: “Many potentially viable parts of the market will not reach self-sufficiency unless governments provide investment [and] explicitly encourage hydrogen adoption.” And at higher valuations, hydrogen companies are “highly sensitive” to setbacks. The report adds that while hydrogen’s high energy-to-mass ratio makes it ideal to replace fossil fuels in industry, in road, sea and air cargo, it likely won’t power cars.More powerMy own research suggests that there’s a way to go before hydrogen hits mass markets. The energy content per volume of hydrogen is only a quarter of other gases like methane, for example. So to transport the same amount of energy we would need larger diameter pipes compared to natural gas.Hydrogen is also a volatile gas so would require different kinds of pipelines. If we disregard these problems and say hydrogen should be produced locally, it produces a new set of issues around storage. The real question for me is this: can ITM Power one day turn a profit? It’s possible. It certainly has potential, demonstrated by a flood of good news recently. The completion of its 1GW Gigafactory in Sheffield is a positive. As is January’s announcement of a joint venture with hydrogen plant giant Linde in Germany.I think ITM Power could have a place in my Stocks and Shares ISA as part of a diversified portfolio. I’ll keep my FTSE 100 and FTSE 250 dividend income payers for steady gains. But I wouldn’t mind grabbing a slice of the rise of hydrogen power either. “This Stock Could Be Like Buying Amazon in 1997” Our 6 ‘Best Buys Now’ Shares ITM Power: should I buy it for my Stocks and Shares ISA?center_img TomRodgers has no position in any of the shares mentioned. The Motley Fool UK owns shares of and has recommended Tesla. The Motley Fool UK has recommended Lloyds Banking Group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Enter Your Email Address Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Tom Rodgers | Wednesday, 27th January, 2021 | More on: ITM I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool.last_img

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