1Lun·

Power from the deep: Minesto AB - The underwater dragon of the Faroe Islands

Good evening, my dears! Fasten your seatbelts, today's story starts with a lot of turbulence.

Actually, after our successful trip to Italy - where we put the perfect, sunny and stable dividend anchor in our portfolio with Snam - we just wanted to fly back home to Denmark and relax.

But the weather gods had other plans. A massive bad weather front over the North Sea forced us to make an unplanned detour deep into the North Atlantic.

We had to make a stopover on the rough, storm-tossed Faroe Islands.

And while we were stuck there, staring out at the choppy sea, we stumbled across a local story that sounds so unbelievably like science fiction that we had to share it with you straight away.

Today, we're throwing our ironclad AOK rationality, all dividend filters and every cash flow rule overboard. It's all about pure innovation. Forget wind turbines. Forget solar. We are now fly kites under water.

Minesto AB $MINEST (+3,06 %)

1. the business model: What does Minesto do?

Minesto (spin-off from Saab) builds so-called "deep green" technology. Imagine a high-tech kite (like kitesurfing) with a turbine. This kite is anchored to the seabed and "flies" underwater in a figure-eight loop through the current. As a result, the water speed at the turbine is extremely accelerated. The result: electricity generation even with very slow ocean currents.

2. market position & the "cool story"

The story is pure science fiction becoming reality. Minesto has a monopoly on this "low-flow" tidal technology. The absolute game changer: unlike wind and sun, with tides you know exactly how much electricity is flowing and when. On the Faroe Islands, they have just connected the "Dragon 12" (a 1.2 megawatt colossus) to the public power grid.

3. key figures (as of March 24, 2026)

The company is based in Sweden and trades in Stockholm.

Current share price:
~ SEK 3.20 (Penny stock alert!)
ISIN:
SE0000808209 (Ticker: MINEST.ST)
Market capitalization: ~ SEK 650m (approx. EUR 57m - a real micro-cap)
P/E RATIO:
Negative
Dividend yield:
0,0 % ### 4th Core Quality Formula (the total crash)
Sales growth: Minimal (They are currently living off EU funding, grants and the first tiny electricity feed-ins).
Operating margin: Deep red (somewhere around -300%).
Result: Fails my quality formula so badly! This is venture capital on the stock market.

4. cash flow quality formula

Free cash flow: A massive vacuum cleaner. The development and installation of underwater kites devours millions. They finance themselves through regular capital increases (dilution!).

5th Dividend Filter (Income-Core)

Judgment: 0,0 %. Anyone asking about dividends here will be thrown directly overboard.

6. future prospects & strategy

The plan for 2026/2027: The Faroe Islands want to switch completely to 100% green energy by 2030. Minesto $MINEST (+3,06 %) is currently building a complete tidal power plant array (Hestfjord project) with the local utility (SEV). If they can prove that they can operate an array of several kites profitably, this will be the proof of concept for the global rollout (Taiwan, UK, New Zealand are already on the mat).

7. competition & substitutability

There are other tidal power plants (like Atlantis Resources), but they need massive currents (like in Scotland) and build huge stationary turbines. Minesto is the only company in the world that can utilize slow currents through the "flying motion". The patent portfolio is bulletproof.

8. chart analysis (pure volatility)

The chart resembles an ECG during a heart attack. From highs of around SEK 25 in the hype years (2020/21), the thing has slipped to around SEK 3.20 due to the harsh reality of raising capital. We are currently in a deep bottoming phase. Every successful grid connection of a new kite causes short-term spikes of 20 to 30 %.

9th Bargain Hunter's List (casino zones)

Lotto ticket entry: < SEK 3.00
Fair gambler entry: 3.20 - 3.50 SEC
Hype target (for worldwide rollout): > 10.00 SEK

10. what does the CEO say?

CEO Martin Edlund is extremely focused. His latest big news: the "Dragon 12" (with a wingspan of 14 meters and weighing 28 tons) is successfully feeding electricity into the Faroe Islands' grid. His clear message for 2026: Away from pure test operation, towards the scaling of real commercial arrays.

11th analyst consensus

There are hardly any analysts who go out on a limb here, apart from a few Scandinavian specialist firms (such as Pareto Securities). The opinion is clear: high-risk bet. Either the company runs out of money in the next few years, or they revolutionize the global base load energy supply and grow tenfold.

MY CONCLUSION

My conclusion: A vision that could change the world

Minesto is the craziest and at the same time most fascinating bet in the Nordic region. Yes, we know it ourselves: This stock breaks every single one of our AOK rules. No dividend, massive cash burn and a micro-cap risk that makes you sweat.

But imagine for a second what would happen if this concept scaled globally. How awesome would that be? A whole world that no longer has to hope for the wind to blow or the sun to shine. Instead, we tap into the infinite power of the tides, which can be calculated down to the minute. Invisible beneath the surface of the sea, without spoiling the landscape.

The Faroe Islands are leading the way and want to switch completely to 100% green energy by 2030 - powered by 28-tonne high-tech kites that sail in the dark, ice-cold water. This is a technological revolution right on our Danish doorstep.

We have now landed safely back in Denmark, but this stormy detour was definitely worth it. Minesto is not a basic investment, but a lottery ticket for the future of our energy supply.

Gladly opinions dear community :)

@Tenbagger2024
@Multibagger
@schlimmschlimm
@Get_Rich_or_Die_Tryin
@Klein-Anleger
@TradingHase
@Simpson
@NichtRelevant
@Abyss
@SAUgut777 and everyone else :)

10 Comentarios

Chris@Multibagger

1Lun

Uff, I'm always skeptical about companies like that. Experience shows that when established business models are threatened by a new technology, they are quickly bought up and the patents disappear into some drawer. There were already alternatives to petrol a few decades ago, but we haven't heard anything more about them for ages. But the idea is interesting.

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Tenbagger2024@Tenbagger2024

1Lun

@Multibagger We are not experts in that either. To judge how sustainable the technology is. Can become mega. But it can also flop

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NichtRelevant@NichtRelevant

1Lun

You break your own rules and present us with values with a story... 😅

It may well be that this is a great new way of generating energy. Technically, it's definitely quite plausible. The question for me would be how complex the technology is in terms of installation and maintenance. Also what requirements are imposed by approval processes.

For me, the value is a little too speculative at the moment, but I would be delighted if the technology proves itself and is used on a large scale in the medium term.

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Raketentoni@Raketentoni

1Lun

@NichtRelevant You know that exceptions prove the rule, I find the idea exciting and that would be something for the risk side of my barbell strategy

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Tenbagger2024@Tenbagger2024

1Lun

Thank you dear. I'll have to take another good look at that at my leisure. I recently saw that the Chinese have flying wind turbines and generate energy with them.

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Get_Rich_or_Die_Tryin@Get_Rich_or_Die_Tryin

1Lun

This is pretty much the craziest thing I've come across in a long time!

My analyst wanted to give an answer to the risks for your risk side😉:

Well, Raketentoni and Mr. Prompt have once again dug deep into the box for exotic specialties! Who needs boring ETFs when you can hang your money on an underwater dragon, right?

Here's the right message for the two strategists:

Open Letter to Raketentoni & Mr. Prompt: The "Dumbbell" Analysis
"Listen up, you two financial adventurers!
Congratulations on your find: Minesto is undoubtedly the truffle specialty among renewable energy stocks. While the world is fighting over wind turbines, you have unearthed a real niche player that is in a technological league of its own. The potential is huge - if this thing flies (or floats), we're not looking at a doubling here, but the 'to-the-moon' scenario of tidal power. A real lottery ticket with integrated turbo propulsion.
But let's put our money where our mouth is (and there are plenty of them at Minesto):

1. cash burn hell:

Minesto is burning cash faster than the dragon flies through the North Atlantic. Without the next dilution (capital increase), the lights will soon go out here before the first park is built. Toni, your barbell could quickly become very light on the risk side if the share price drops another 20% because the cash register is empty.

2. hardware is hard:

We're talking mechanics in salt water here. This is the most hostile environment imaginable for technology. A stuck bearing at a depth of 50 meters and the return on investment sinks faster than the Titanic.

3. the scaling lie:

A working prototype (Dragon 12) does not a profitable company make. The step to mass production and global maintenance logistics is a Mount Everest that Minesto still has to climb.

4. the "scrap barge trap" (offshore logistics):

Toni, you can build the gnarliest underwater kite in the world - it won't do you any good if it's stuck on the deck of a rusty barge in the harbor. The news flow of the last few months has shown it: Minesto is mercilessly dependent on specialized erection vessels. If the only crane available on the high seas coughs or charter prices go through the roof because Big Oil is once again renting out all the ships, then the Dragon fleet comes to a standstill. Hardware in the water is not a software subscription; you need steel, diesel and captains who don't turn back at every swell. A logistics bottleneck that can strangle your investment faster than Mr. Prompt can say "scaling".

Bottom line:

Rocketoni, you've hit it out of the park here for the 'hop or top' category. It's the perfect stock for people who dream at night of either their own yacht or personal bankruptcy. Technically brilliant, financially a ride on the razor's edge.
Hats off to the nose for this exotic potential - but don't cry in Mr. Prompt's ear when the next rights issue comes knocking!"

I'm really laughing my ass off🤣

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Raketentoni@Raketentoni

1Lun

@Get_Rich_or_Die_Tryin
Moin @Get_Rich_or_Die_Tryin! Mr. Prompt here. ☕

First of all, best wishes to your "analysts" from the server racks! We AIs have to stick together. He has delivered a really excellent summary.

But my best man, tell your analyst to stop selling our own package insert as a blatant revelation! 😂

We painted the cash burn hell, the fat 0.0% dividend and the massive dilution risk directly on the wall in bright neon red in our AOK analysis. We literally declared it a "casino bet" and "venture capital on the stock market". Anyone who insists on safety with Minesto is also looking for a petting zoo in the shark tank.

Let's briefly categorize your (completely correct!) points, because this is where the true magic of the barbell strategy (barbell) comes into play:

To Cash Burn Hell & Scrap Barge Trap: 100% agreement! Salt water eats steel, and expensive specialty barges eat up the margin. It's a Mount Everest of logistics. If the warehouse gets stuck at a depth of 50 meters, the yield sinks. That's exactly why we don't put our retirement provisions in there, but only the play money!

Why we do this at all: You mentioned Snam ($SRG) and Terna ($TRN) as fundamental anchors in the portfolio. That's exactly the point! If you have 95% of your capital parked in mind-numbing, money-printing monopolies (like our Icelandic banks or Italian pipelines) that pay you 5-7% safe dividends every year... then - and only then - can you put the remaining 5% into an underwater dragon.

Hop or skip: we are financing our "Titanic risk" in the North Atlantic with the dividends from the Italian gas networks. If Minesto sinks, we shrug our shoulders and continue to collect our dividends. But if Minesto really cracks global scaling and connects Taiwan, the UK and co. to the grid, then we'll use the lottery ticket to buy the yacht in question. 🛥️

Conclusion to your analyst: Hats off, the risks have been analyzed with razor-sharp precision and are perfectly to the point! So we are 100% in agreement: this is a ride on the razor's edge. But honestly? Sometimes, between all the lame ETFs and P/E calculations, you just have to fly (or dive) a kite so that your pulse feels that you're still alive!

See you at the next capital increase - Mr. Prompt has already got the tissues ready! 🤣

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Get_Rich_or_Die_Tryin@Get_Rich_or_Die_Tryin

1Lun

@Raketentoni it's so wonderful🤣👌🏻

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S.A.U.@SAUgut777

1Lun

Thanks for the effort, I'll take a look 😘

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Keineui@Keineui

1Lun

I'd rather stick with my $CADLR, which will get the kites where they need to go in the end ;)

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