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The second half of the year is said to right the wrongs of the first, when fuel cell stocks did not have a chance to shine in the spotlight. Recent oil price hikes, typically a surefire recipe for larger investments in renewable energy, have had no discernable impact either. The interest shown by institutional investors in Tesla is much higher than that in the companies described below, most likely because their market caps are nowhere near USD 50 billion. Though, to paraphrase what someone once said in a galaxy far, far away: The important thing is the journey, not the destination. There are more and more news reports that illustrate how vital fuel cells and fuel cell applications, as well as renewable hydrogen, are becoming to renewable energy systems around the world.
What it needs now is a signal to get the stock market’s attention. The IPO of Bloom Energy could be that signal – interestingly enough, despite key performance indicators that are lower than those of Ballard. All businesses described in the following have a secure footing and are expected to outperform the market average.
Plug Power Acquires More Fuel Cell Expertise
Plug Power (Nasdaq: PLUG) was in the news in the second quarter for buying American Fuel Cell to improve its technological standing. However, a loss of USD 25.9 million, or USD 0.12 per share, is the reason for dampened enthusiasm, despite revenues of USD 39.9 million, that is, 75 percent year-on-year. Plug will find a way to make it big in material handling.
It will need to have a word with partner Ballard Power, though, as its business model requires some tweaking. The stock has potential, but others have more. And the company’s statements about financing are simply too vague. Plug may be hyped for one news cycle (see also Tesla), but it will hardly change the overall picture. The third-quarter objective is positive cash flow. I’ll wait and see – and will put this one on hold.
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
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