FuelCell Energy’s quarterly results weren’t the reason for the year-end price surge from around USD 2 to over USD 11. At times, more than 200 million trades were concluded in one day, which exceeds the total shares outstanding. I believe we’re witnessing the impact of high-frequency or day trades or swarm-like investor activity via, e.g., Robinhood. Right before the rally, Heights Capital Management reported the purchase of 19 million FuelCell shares, giving the private equity firm a 6.7 percent stake in the fuel cell business.
US manufacturer Nikola is the company currently making the most waves in the nascent hydrogen market, emerging as another success story similar to Tesla‘s. Its critics, however, consider the Phoenix-based would-be truck maker to be just as overrated as its competitor from Fremont, as it has yet to deliver on most of its promises.
Profit from 2017‘s first quarter was less than persuasive, as minus USD 1.33 per share (before extraordinary items/losses) was a much higher fall than the, on average, USD 0.81 in loss analysts had expected. First-quarter net loss added up to around USD 330 million. That revenue grew strongly by 69 per cent (compared to the same quarter last year) to USD 2.7 billion is a positive.
On March 1, 2017, China Today reported in detail about the Asian country’s joint efforts together with Canada in environmental protection and clean energies. Canadian-based Ballard Power Systems was mentioned as a model example and positive force behind many fuel cell and mass transportation projects and agreements in China (bus, rails). What Ballard and the fuel cell companies discussed in the following articles have in common is that they will be in the black in two to three years’ time and that the fuel cell markets are at a turning point for the better. The five businesses and their shares should be viewed based on their very promising long-term outlook and not based on their admittedly disappointing short-term results.
Canadian-based Hydrogenics (NASDAQ: HYGS) reported revenue of USD 8.7 million for the fourth quarter of last year and a net loss of USD 0.20 per share. This means revenue in all of 2016 was at USD 29 million, at a net loss of USD 9.9 million. Conversely, the number of order bookings has skyrocketed and backlog totaled USD 106.6 million, of which around USD 38 million are said to be recognized as revenue in the current fiscal year
During the industry conference Energy – Think Outside the Box in Berlin, William M. Colton, vice president corporate strategic planning at ExxonMobil, talked about the big potential of a technology called “carbon capture.” By that, he meant the option to add CO2 to hydrogen to create methane and convert the result into power and heat inside a fuel cell. ExxonMobil’s partner for generating energy from emissions is FuelCell Energy (NASDAQ: FCEL). Days later, U.S. President Donald Trump said in a speech that he intended to “end the war on coal” and that the United States was going to have “clean coal.”
The minus USD 0.11 per share was a much higher loss than the USD 0.06 that had been anticipated. The adjusted EPS is said to be at USD 0.08 per share. The company’s revenue increased to USD 32.6 million in the final quarter of 2016 – while USD 34.8 million had been expected. The net loss attributable to common shareholders (incl. large extraordinary items) added up to USD 57.6 million at USD 85.9 million in revenue. This fiscal year, GAAP revenue is expected to grow to USD 130 million. Where does the company go from here? The focus of Plug Power (NASDAQ: PLUG) is the materials handling market, and it’s doing well on it regarding customers and bookings.
FuelCell Energy specializes in large-scale projects using fuel-cell technology to generate clean energy (electricity and heat). It is also leading in technologies such as CO2 capture and storage. The company recently secured a contract award by the American Department of Energy for a scalable CO2 capturing project (e.g., for coal-fired power plants) potentially worth around US$ 24 million. The system used