MoneyTalks is Stockhead’s regular drill down into what stocks investors are looking at right now. We’ll tap our extensive list of experts to hear what’s hot, their top picks, and what they’re looking out for.

Today we hear from Barclay Pearce Capital Queensland state manager, Morgan McGuire.

 

What’s hot right now?

McGuire is all about the commodities best placed to benefit from the decade-long ‘commodity supercycle’ which Goldman Sachs’ Jeff Currie believes we are only just at the beginning of.

A commodity supercyle refers to an extended period of boom and bust, with commodity prices ranging significantly above or below their long-term trends.

Experts say these movements may even outlast the business cycle and typically persist for well over a decade.

“As well as your critical minerals, which will no doubt play a huge role in the decarbonisation and the renewable energy space, hydrogen will continue to be a hot topic as well as graphene technology for battery storage,” McGuire says.

“At Barclay Pearce we are quite heavily focused in the renewable sector – as a firm we are sector agnostic, but it is one of our key drivers and we are working with a few companies who are heavily involved in the space.”

In terms of long-term outlook, in particular the 10-year window, McGuire says governments around the world have already committed to road maps for the usage of hydrogen, ammonia, and other renewable energy sources.

“That is already factored in and in some countries it’s already in legislation,” he adds.

“The market is forward facing and although inflation is still very much a threat, again most of the decisions are factored into the market in terms of interest rate rises, inflation is here and people are comfortable with the fact that it is going to be tamed somehow.”

 

Top picks

TALGA GROUP (ASX:TLG)

McGuire says the global graphene market is around US$556m in 2022 and it looking at a CAGR of about 38pc between 2022 and 2027.

“The market is diverse – there are graphene sheets, films, nanoribbons, nanoplatelets and graphene oxide, which means great opportunities for end users as the market is split up into electronics, telecommunications, biomedicine, healthcare, energy, aerospace and defence.

“Not only does it have a huge variety of applications but it is fire resistant, an excellent conductor, and is 200 times stronger than steel.

“In terms of demand between 2022 and 2027, the largest market is the Asia Pacific region who are expected to dominate during that forecast period – as an investor you want to get into a growing market and that is why graphene attracts me the most.”

 

GRAPHENE MANUFACTURING GROUP (TSXV:GMG)

GMG is Brisbane-based company who have a developed a graphene-aluminium-iron coin cell battery prototype which are fully rechargeable in several seconds, retains capacity for several thousand charge and discharge cycles, are non-flammable and non-toxic and almost fully recyclable.

According to GMG, these characteristics compare favourably against typical rechargeable lithium-ion 2032 type coin cells which take three to six hours to recharge, are toxic, difficult to recycle, are flammable under certain conditions, and degrade more rapidly in performance.

“GMG’s prototype outperforms most things on the market at the moment in the protype stage, and this could expand into further use cases such as energy storage,” McGuire explains.

“This is one aspect of what they do but they are conducting a lot of research and development with the University of Queensland.”

 

H2X GLOBAL (unlisted)

This is one company McGuire says Barclay Pearce is working with at the moment.

“They’ve got a working prototype of a hydrogen fuel cell vehicle which is the Warrego Ute and that’s a repurposed Ford Ranger with a hydrogen fuel cell within that vehicle,” he explains.

“They are looking to list sometime in the near future.”

PODCAST: H2X expect to have their hydrogen vehicles on the road within the year

 

The views, information, or opinions expressed in the interviews in this article are solely those of the interviewees and do not represent the views of Stockhead.

Stockhead does not provide, endorse or otherwise assume responsibility for any financial product advice contained in this article.

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