Following a short-term dip, the stock of Canadian fuel cell manufacturer Ballard Power (Nasdaq: BLDP) went on to rebound in a big way, shooting up daily. A good sign. While the company didn’t ink any major deals, it signed several framework agreements and received multiple letters of intent. It also tried to branch out, getting in on projects such as H2Ports. As a global leader, Ballard will remain in the spotlight, in multiple markets, thanks to its highly advanced technology.
Considering the many, successful series of fuel cell bus tests the company has conducted over the years, I think major contract awards will follow soon. Whenever London, or any other big city, decides to implement its road map, a single order could easily translate into stacks for 1,000 buses or more. Then, Ballard could offer the city its new LCS devices, made in China, at a low price and enjoy an advantage its competitors may not have.
2018, the year of transition
A sober analysis is needed to evaluate the recently published figures for fiscal year 2018. Losing the large order Chinese business partner Guangdong Synergy had placed with the company was met with disappointment and cut into revenues. However, the situation could change at any time. China remains fully committed to fuel cells, recognizing the great potential the technology has. On to the numbers: Annual revenue amounted to USD 96.6 million, with the fourth quarter raking in USD 28.5 million. The net loss per share was USD 0.15, while cash and cash reserves amounted to USD 192.2 million on Dec. 31, 2018, and provided the manufacturer with a healthy financial cushion. Many of the business’s R&D projects are expected to lead to large bookings this year, as well as in 2020. The partnership with Weichai is also thought to make more of an impact soon, which means Ballard should be seen as the market’s current number one. Plus, temporary price drops are always an opportunity to buy stock, as long as investments are made with a focus on long-term gains.
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