Seeking Alpha

FuelCell (FCEL) surges 12.1% after receiving its largest ever order, a $181M booking from South...

FuelCell (FCEL) surges 12.1% after receiving its largest ever order, a $181M booking from South Korean partner Posco Energy (PKX) for 121.8 megawatts of fuel cell kits and services. Posco also signs a licensing agreement to manufacture Direct FuelCell power plants in South Korea and sell throughout Asia. Posco will pay FuelCell $26M for the manufacturing rights and then royalties.
Comments (9)
  • thotdoc
    , contributor
    Comments (1760) | Send Message
     
    Fcel is emerging from the 'valley of death'. Now is the time to invest.
    5 Nov 2012, 10:08 AM Reply Like
  • okcalmoser
    , contributor
    Comments (2) | Send Message
     
    Have been slowly accummulating and big time pleased with today's news. Hope our new Prez makes a firm committment to alternative energy that WORKS for the U.S.
    5 Nov 2012, 12:03 PM Reply Like
  • philblock
    , contributor
    Comments (253) | Send Message
     
    Finally! As Dr. Ballard predicted back in the 80s, (Powering the Future, b y Tom Koppel) and I, back in 1960, when as a newly graduated EE I discovered Allis Chalmers' fuel cells, that they would eventually power the world. Good-buy nuclear power! The dawn of distributed power is upon us and the beginning of the end of centralized power plants is beginning. Now is the time for all you 20th century thinking power company execs. to wake up and realize that the 21st century is upon us!
    LONG LIVE FUEL CELLS!
    5 Nov 2012, 06:23 PM Reply Like
  • dtothill
    , contributor
    Comments (6) | Send Message
     
    Their market cap is only $187 million. Can someone explain to me why they are having such a hard time maintaining a share price over $1?
    7 Nov 2012, 08:34 AM Reply Like
  • philblock
    , contributor
    Comments (253) | Send Message
     
    dtohill: Well, the stock market is a difficult place to try to explain, in general--but I will take a shot at it, in regard to Fuel Cells. 1. Back in the 90s, Fuel Cell stocks became popular--one reason is that nuclear power failed to deliver (a rather broad statement)- and FC technology had advanced to the point of practical consideration--for solving the pollution problem. The FC stocks soared, and when the FC companies could not produce the products to meet the hype, the stocks tanked, and so did some of the companies. The news media got turned off and has never come back on. 2. Since then, batteries, solar, wind, and a resurgence of nuclear power has been the hype. 3. The general public does not understand Fuel Cell technology, but they understand wind, solar, nuclear power,and RCEVs--so they think! Why! "Familiarity breeds contempt" and most people are familiar with those technologies--they think!
    4. When I have tried to explain Fuel Cell technology on the various blogs, you would not believe the vitriol, derision, and personal insults I have received. I don't know if you have ever read any of John Petersen's articles, a lawyer by trade, and a self appointed expert on battery technology. This is a quote that he sent me on Fuel Cells--"Fuel cells are cute, but they'll never be scalable because of raw materials constraints. They represent a revenue opportunity of less than a half-billion dollars per year, which could make for a nice company, but will never be an important industry." Nevertheless, as the old saying goes, " where ignorance is bliss, t'iss folly to be wise." So I just stay off his blogs, and "consider the source." 5. RCBEV has taken the spotlight, especially Tesla, and the general public has found a new god, Elon Musk, and god help you if you DARE say anything against Musk and/or Tesla!
    So--all the previous probably adds up to what the stock prices of all the FC companies are at today.
    I hope I have partially answered your question.
    Enjoy!
    11 Nov 2012, 06:01 PM Reply Like
  • dtothill
    , contributor
    Comments (6) | Send Message
     
    philblock: As someone who has only been in this stock for about a year I really appreciate the background. Was confused as to why it traded so high back in the day.
    My other question is less to do with the technology and more to do with valuation. The company's market cap is now $169 million, but their contract was worth $181 million. Is that really fair? It just seems like from a financial standpoint they were closing in rapidly on their break even point, but now they have an order that is more than their market cap. It seems crazy to think that they can have that much backlog and still not get taken seriously.
    12 Nov 2012, 06:01 PM Reply Like
  • philblock
    , contributor
    Comments (253) | Send Message
     
    dtohill: Again, trying to figure the stock market is tough. Remember, the stock market consists of people--so go figure. One analogy that might be used is "how did Obama get reelected?" when in the past no one with his record ever got reelected---again, "it's people"-- so go figure. I am sorry I can't give you a better answer, maybe someone else can. But if I were THAT smart, I would be sitting on my yacht in Charleston harbor sipping mint juleps instead of writing comments.
    Enjoy!
    12 Nov 2012, 07:32 PM Reply Like
  • dtothill
    , contributor
    Comments (6) | Send Message
     
    Well the Obama election makes a lot more sense to me (and most likely the people on this site), looking at the Dow when he got elected, and where it is today pretty much sums it up. Not to get too political, but when you add in common sense social programs and the insanity coming from the right, it's just icing on the cake. Now my biggest problem is deciding how many shares of FCEL to buy right now...
    3 Dec 2012, 06:59 AM Reply Like
  • philblock
    , contributor
    Comments (253) | Send Message
     
    dtothill: Well, that is another point about the stock market, it has a tendency to ignore politics and do its own thing. Remember, people from all over the world invest in American business, and put business before politics (a generalization). Take note, in your own words, "not to get too political" socialism ,communism, Nazism, what ever you prefer to call it, has been a failure down through the ages and ALWAYS leads to a form of dictatorship. And remember, these systems start out feeding off capitalism, finally destroying it and itself. The "workers paradise" communistic Russia, collapsed and is now headed, albeit slowly, toward capitalism. So is communist China and Vietnam. Even Castro admitted communism is a failure--the perfect communist! This country is great because of Capitalism, is spite of it defects. No system is perfect. Even the garden of Eden wasn't--it had its snake. Companies like FCEL are a result of free enterprise--i.e.. Capitalism--not government failed programs (solar programs, etc).
    You like Obama. Fine. We are still free to make mistakes. The American public has made mistakes before. But the beauty of this country is that we are able to correct them. So--come back 10 years from now when we have become one of those "socialistic" failures and tell me if you still like Obama. And finally, not all people on the "Right" are idiots. I consider myself on the "Right" and if that makes me an idiot, so be it.
    Enjoy!
    9 Dec 2012, 07:15 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs