That was fast. First, Plug Power [Nasdaq: PLUG] raises around USD 840 million issuing new shares at USD 22.25 apiece. A felt five minutes later, the company is offered a USD 1 billion bought deal, perfectly exploiting the stock surge to collect massive capital. Plug must now have over USD 1.7 billion in the bank, thanks to the company’s growth prospects targeting hydrogen.
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.
As third-quarter results faded in the rear-view mirror, Bloom Energy stock rebounded with a vengeance following a temporary slump. Natural disasters, including storms and floods, prevented the completion of 41 projects, pushing revenue below the anticipated USD 225 million to USD 200 million, And yet, the company’s USD 12 million in the red means Bloom [NYSE: BE] performed much better than expected. The net loss was “only” USD 0.09 per share instead of USD 0.16 and including non-recurring revenues, that loss shrank to as little as USD 0.04 a share.
Canadian producer Hydrogenics (Nasdqaq: HYGS) and British manufacturer ITM Power (London: ITM) aren’t entirely comparable, but they use similar technologies. There are some commonalities in the form of power-to-gas projects, hydrogen stations and powerful electrolyzers to generate the gas. Their market caps aren’t as far apart as I would expect based on the number and contract value of bookings. Both stocks have experienced severe price drops.
At first glance, the figures from some of the North American fuel cell companies by the end of March 2015 have proved to be disappointing. The reason that Ballard Power, Hydrogenics and Plug Power have come up with figures which failed to correspond to expectations are the high quarterly variations in relation to the accounting of orders which are complete as well as ones which are still being processed and settled. On the second glance