Mar. 13, 2014, 8:18 AM
- Plug Power (PLUG) +8.9% premarket after issuing Q4 results that beat revenue estimates and predicting orders will rise more than fourfold this year to more than $150M.
- Unadjusted net loss widened to $28.9M from $8.47M in the year-ago quarter, mainly because of a $20M charge related to a change in the fair value of previously issued common stock warrants.
- Bookings reached $32M in the quarter, as strong product sales and maintenance orders were received from large companies such as Wal-Mart, Kroger, BMW and Mercedes-Benz; shipments fell 46% Y/Y to 279 units.
- “I am more bullish than ever that Plug Power is moving into a rapid growth cycle,” CEO Andy Marsh says, expecting EBITDA to break even by Q3.
- Also: BLDP +7.5%, FCEL +5% premarket.
Mar. 12, 2014, 3:36 PM
- Shorts against the share prices of red-hot fuel cell manufacturers are climbing as questions emerge about the prospects for profits.
- Plug Power’s (PLUG +11.4%) short interest reached a two-and-a-half-year high of 10.6% of shares outstanding on March 10, up from 2.4% in September; shorts in FuelCell Energy (FCEL +1.8%) reached 14.2% yesterday vs. 4% in June; and Ballard Power (BLDP +1.7%) surged to a record 3% from 0.2% in October.
- PLUG plunged yesterday after short-seller Andrew Left said in a report that the shares are worth 50 cents, and Left adds another criticism today, saying PLUG will be threatened if larger companies move into its market, such as Toyota (TM), which plans to release a fuel-cell sedan next year.
- "If fuel cells become standard in fork lifts, Toyota is ready to step in,” Left says today. "If hydrogen becomes the fuel of the future, then Wal-Mart will take the cheapest supplier.”
- Cowen's Robert Stone, who downgraded FCEL today, counters that PLUG dominates the market in fuel cells for material handling and has more than 100 patents that will help protect its advantage should additional suppliers enter the market.
Mar. 12, 2014, 2:17 PM
- FuelCell Energy (FCEL -0.3%) merits a big target price boost to $4.10 from $2.30 from Stifel, which reiterates its Buy rating as it foresees sizable wins over the coming months to drive further investor interest in the stock and pave a path to profitability.
- FCEL’s star has risen and fallen alongside Plug Power (PLUG +10.7%), which mostly supplies fuel cell products for warehouse equipment such as forklifts; fuel cell-powered forklifts may need tax credits, but FCEL produces power that is priced competitively with or without subsidies, Stifel says.
- Cowen analysts earlier took a different approach, downgrading shares to Market Perform in the belief that most of the headway the company would make this year is already factored in the current share price.
Mar. 12, 2014, 10:42 AM
- FuelCell Energy (FCEL -3.6%) is downgraded to Market Perform from Outperform but with a new $2.70 price target, up from $2, at Cowen, which says recently completed fuel cell parks in Connecticut and Korea should open a $12B opportunity, and H1 orders should drive FY 2014 and Q4 revenue and gross margins to EBITDA break-even.
- The firm is eyeing a back-half 2014 weighting to shipments, with a higher mix of full power plant projects vs. kit sales helping lift revenue to ~$68M in Q4 vs. $44M in Q1, and lift gross margin to 12% from 4.9%; in addition to volume, production cost improvements include process upgrades such as automated laser welding.
- However, fuel cell peers Plug Power (PLUG +18.1%) and Ballard Power (BLDP +8.5%) are bouncing from yesterday's huge losses.
Mar. 11, 2014, 5:41 PM
Mar. 11, 2014, 3:22 PM
- The collapse in Plug Power (PLUG -40.8%) has pulled down other alternative fuel shares, as investors turned away from FuelCell Energy's (FCEL -21.6%) better than expected Q4 results to focus on Citron Research's report that said PLUG would be fairly valued at 50 cents.
- Citron's Andrew Left has since taken to the CNBC airwaves to say PLUG has no unique technology and PLUG's management cannot be trusted.
- Ballard Power (BLDP -26.6%), which earned 11% of its revenue last year by supplying the fuel cell stacks that run PLUG’s forklifts, also takes a beating.
- Faring better is Capstone Turbine (CPST +7.9%), off earlier five-year highs but still up sharply, as the maker of microturbines has been moving slowly toward profitability.
Mar. 11, 2014, 9:17 AM
- FuelCell Energy's (FCEL) FQ1 results aren't slowing down the recent buying frenzy in its shares, +16.8% premarket after revenue jumped 22% Y/Y and losses narrowed amid growing demand for multi-megawatt fuel cell parks.
- Inquiries and activity levels globally remain high, FCEL says, and the company is on track to close orders worth multiple megawatts of power capacity.
- Backlog totaled $327M at Jan. 31, 2014 vs. $428M a year ago.
- No FQ2 guidance is provided; consensus estimates for the quarter are an EPS loss of $0.03 on sales of $48.8M.
- Alternative energy stocks continue to rise at a torrid pace: PLUG +9.5%, BLDP +11.7%, HYGS +5.1%, ZBB +18.8%, CPST +13.2%, OPTT +9.9% premarket.
Mar. 11, 2014, 9:12 AM
Mar. 10, 2014, 6:15 PM| 23 Comments
Mar. 10, 2014, 9:49 AM
- Last week's momentum in alternative energy shares continues into the new week, as Plug Power (PLUG +10.4%), FuelCell Energy (FCEL +11.6%), Ballard Power (BLDP +10.2%) and ZBB Energy (ZBB +15.1%) open sharply higher.
- FCEL earnings come out after the close today, and PLUG results are set for a Thursday release.
Mar. 10, 2014, 9:12 AM
Mar. 10, 2014, 12:10 AM
Mar. 9, 2014, 5:35 PM
Mar. 7, 2014, 3:27 PM
- The growing consensus is that fuel cell companies are transitioning from money losers to money makers, "similar to where solar was in 2011 and 2012, compellingly priced and poised for share-price increase," and are no longer the pawns of short sellers.
- Cowen analysts, who helped kick off the craze early this week they said Plug Power (PLUG +26.1%) could amass more contracts with current customers and possibly expand overseas, are out today saying FuelCell Energy's (FCEL +14.3%) Q4 earnings, expected Monday, have the potential for upside.
- Fuel cell companies are capping a spectacular week: FCEL +79%, PLUG +71%, BLDP +42%, ZBB +132%.
Mar. 7, 2014, 10:28 AM
- FuelCell Energy (FCEL +5.6%) says it received a $2.8M continuation award from the U.S. Department of Energy to showcase the capabilities of its Direct FuelCell power plant for industrial applications; the plant is expected to be operational by the end of this year.
- Shares already have jumped more than 60% this week on the back of Plug Power's (PLUG +6.1%) substantial new order for fuel cell-powered forklifts at six of Walmart’s U.S. distribution centers.
- Also: BLDP +1.3%, ZBB +2.4%.
Mar. 7, 2014, 9:12 AM
FCEL vs. ETF Alternatives
Fuelcell Energy Inc is an integrated fuel cell company. The Company designs, manufactures, sells, installs, operates and services ultra-clean, highly efficient stationary fuel cell power plantsfor distributed power generation.
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