Contact

FuelCell Energy Stock Still in the Valley of Tears

By

October 4, 2018

Image titel:

Sources:

FuelCell Energy Stock Still in the Valley of Tears

Margalef

Pere Margalef, © FuelCell Energy

FuelCell Energy (Nasdaq: FCEL) disclosed in June that South Korean Posco Energy would end its agreement with the company to provide certain market access rights in Asia. By contrast, other Korean suppliers have begun to invest in fuel cells on a large scale. Posco’s decision could have been made for strategic reasons, maybe to limit its product range. The fuel cell division seems to be the logical choice: The two businesses have built relatively large fuel cell parks together, but the total investment has been comparatively small. The real question is which organization bought Posco’s 15 million shares. Also, did the corporation accept a discount on the price, which would explain the steep drop on the stock market?

The name of the new shareholder will certainly become public at one point, though it could likewise be a group of investors that managed to split up the parcel to circumvent reporting requirements. In my view, there is only one positive interpretation, considering Posco’s shares were again offered for sale later. A high-ranking Ballard employee may have used the opportunity to purchase stock in the amount of USD 200,000.

Advertisements

Around the same time, the company was able to add some bookings, for example, by the U.S. Navy. Moreover, it announced intriguing advances on the technology front. My gut feeling is that FuelCell Energy is trying to get into a more favorable market position, as it expects large orders to arrive soon. The company stated that it had bid on projects worth more than USD 1.6 billion. This is in line with its announcement to increase capacity from 25 megawatts to 55 in a year and hire another 100 employees.

Not long ago, it won two contract bids for delivering 22.2 megawatts of capacity in Connecticut. Additionally, the U.S. Department of Energy awarded FuelCell Energy USD 10 million in research funding.

Advertisements

As for the results from the second quarter ended April 30, 2018: The company was able to increase backlog to USD 682 million and has an eye on USD 1.6 billion in biddings. Cash amounted to a healthy USD 105.2 million of restricted and freely available funds. If you add NRG Energy’s credit facility of USD 40 million, FuelCell Energy has cash reserves totaling USD 145.2 million.

Shares convertible into Series C preferred stock at USD 1.84 cost the company USD 4.2 million in dividends, but the payment was – in my estimation, albeit no guarantee it’s true – in the form of shares. My interpretation of this financing method is that capital is made available on demand, so to speak, and taking full advantage of that method could rake in about USD 50 million. These funds will become important when FuelCell Energy needs to deliver large orders that require equity or securities.

I think the price took a dive because of Posco’s exit and not fundamental change, so that we may soon see the stock recover, provided business develops as expected.

FuelCell Energy Solutions has again needed to reassign responsibilities for sales in Europe, or, more specifically, Germany. After Klaus Ullrich left the company, his tasks were taken up by Pere Margalef (see photo), who “has been put in charge of all sales operations in Europe,” Chip Bottone, FuelCell Energy’s chief executive, told H2-international. Ullrich had been elevated to vice president of business development in May 2017 (see H2-international, August 2017) after Andreas Frömmel had gone to work for sunfire, where Ullrich is now employed as well.

Risk warning

Share trading can result in a total loss of your investment. Consider spreading the risk as a sensible precaution. The fuel cell companies mentioned in this article are small and mid-cap ones, i.e., they may experience high stock volatility. This article is not to be taken as a recommendation of what shares to buy or sell – it comes without any explicit or implicit guarantee or warranty. All information is based on publicly available sources and the content of this article reflects the author’s opinion only. This article focuses on mid-term and long-term prospects and not short-term profit. The author may own shares in any of the companies mentioned in it.

Written by Sven Jösting

Kategorien: North America
:Schlagworte

Here are interesting and current articles on the topic of hydrogen – stocks and the stock market!

Economic prospects for companies in the hydrogen sector | Future, stocks & hydrogen companies on the stock exchange and more…

Which hydrogen companies will prevail in the competitive market in the long term? Get tips and cartwheels and learn more about risks or opportunities. Our stock market specialist and expert author Sven Jösting reports critically, independently and competently.

Mar 18 2024

Search for the ideal hydrogen storage

Interview with Thomas Korn, CEO of water stuff & sun Startup company water stuff & sun has...
Mar 15 2024

Is exponential growth slowing down?

Fuel Cell Industry Review 2022 Year 2022 saw fuel cell shipments creep up over 2021 numbers,...
Mar 11 2024

On the way to becoming a green hydrogen partner

Oman aims to score points with H2 infrastructure Wind, sun and loads of expertise – these...
Mar 07 2024

We can master a scale-up for green hydrogen

Interview with Dr. Kai Fischer, Director at RWTH Aachen The efficient scaling of green hydrogen...
Mar 07 2024

Frustration over continuing uncertainties

Interview with Jorgo Chatzimarkakis, CEO of Hydrogen Europe There is a lot that needs sorting out...
Mar 05 2024

“If ever there was momentum for hydrogen, it is now”

Interview with Dr. Jochen Köckler, chairman of Deutsche Messe “We’re bringing people together.”...
Feb 28 2024

H2Direkt: Blueprint for heating with pure H2

The energy providers Thüga und Energie Südbayern (ESB) as well as Energienetze Bayern have...
Feb 26 2024

Just switch over?

Hydrogen in the existing natural gas network Whether hydrogen contributes to the clean heating...
Feb 26 2024

Pilot plant for coating bipolar plates

At Fraunhofer FEP (Fraunhofer-Institut für Organische Elektronik, Elektronenstrahl- und...
Feb 20 2024

55 MW electrolyzer to decarbonize Saarland

Hydrogen Regions series: HydroHub Fenne living lab The power plant site in Fenne, Völklingen, a...
Feb 20 2024

Chicken feathers as FC membrane material

Feathers from chickens or other poultry could in the future help make fuel cells more effective...
Feb 15 2024

SMEs demand more security

Guest article by André Steinau, CEO of GP Joule Hydrogen After all, the Ampel Coalition leading...
Feb 15 2024

Accelerated expansion of renewable energies

RED III is here – Elsewhere, the wait continues Progress is being made at EU level – albeit...
Feb 12 2024

Picea 2 relies on lithium instead of lead

HPS presents new product generation The company HPS Home Power Solutions has unveiled a new...
Feb 12 2024

H2 production by photocatalysis

The direct generation of hydrogen from sunlight has long been considered the most elegant solution...
Feb 05 2024

Regional instead of international

Hy-Fcell has it difficult asserting itself The aspiration of Landesmesse Stuttgart with Hy-Fcell...
Feb 01 2024

Hydrogeit Verlag turns 20 years old

Hydrogeit Verlag is proudly celebrating its 20th anniversary as a renowned specialist publisher in...
Jan 26 2024

Stracke other H2Now managing director

BMV Energy GmbH is entering the market as another player in hydrogen refueling stations. The...
Jan 26 2024

Starting points for a comprehensive hydrogen ramp-up

Industry congress GAT 2023 in Cologne To establish a functioning hydrogen economy, the entire...
Jan 26 2024

The industry highpoint in autumn

Hydrogen Technology Expo total success In autumn 2023 as well, the Hydrogen Technology Expo was...

0 Comments

Leave a Reply