This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Fuel cell stocks: idle speculation or diamonds in the rough?

Stocks in this article: FCEL HYGS PLUG

Chris Lau, Kapitall: Fuel cell stocks have taken a hit as market speculation gave way to defensive fear. Is it time for a second look?

The quick rise and fall in fuel cell firms preceded the general decline in stock markets. Now that sentiment is firmly negative, investors holding FuelCell Energy (FCEL) will wonder if its stock will revisit old highs.

Stocks action is news driven

FuelCell Energy is still up 160% despite closing sharply below its $3.93 high reached on March 10 2014. Buying peaked after the firm reported fiscal Q1 earnings loss of $0.04 per share. Revenue was $44.43 million, up 22.1% from the previous year.

Read more from Kapitall: Will natural foods stocks benefit as organic goes mainstream?

Negativity began after Citron said Plug Power (PLUG) had no value. While FuelCell shares were supported by the hope that order levels would grow by fourfold, even good news is not pushing share price higher now. FuelCell’s CEO said it expected to sign its first megawatt scale project in Europe in 2014.

Realistically, the project size announced is still too small to benefit from economies of scale. Without bigger contracts, costs may remain elevated.

Hydrogenics Corporation (HYGS) is another fuel cell firm that sold off, falling more so than FuelCell Energy.

Hydrogenics’s wind-power-to-gas (P2G) technology may have a technological advantage. The firm won a 1 megawatt contract last year to German utility E.ON. Hydrogenics’s stock dropped by double digits the day it said Q1 revenue would be lower than analyst estimates. The firm sees revenue in Q1 as low as $7 million, though analysts expected Hydrogenics to report revenue of $11.7 million. Despite the quarterly miss, revenue is expected to be higher than $50 million. It also expects to be profitable on an EBITDA basis.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs