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 supply stocks: How to play volatility

By Chris Lau for Kapitall.

Volatility is rife for companies in the fuel cell sector. This implies investors with a low tolerance for risk should avoid fuel cell companies. For those willing to venture into this space, there are three companies to watch.

Ballard Power (BLDP) won a deal with Azure Hydrogen that is worth $6 million. This will boost Ballard’s growth in the Chinese market. The firm will supply fuel cell stacks and fuel processors. The deal also lets Ballard monetize its intellectual property.

Bearishness in Ballard’s stock is high. The short float is 8.75%, and is one of the reasons for the volatility in its shares.

The release of Hyundai’s first hydrogen fuel cell powered SUV should boost awareness of hydrogen cell suppliers.

FuelCell Energy (FCEL) is another play for investors in the fuel cell market. Shares peaked on March 10th, but are trying to make a comeback.

FuelCell won a deal to supply a 1.4 MW fuel cell power plant for the University of California.

Fundamentally, FuelCell still has many challenges. Its last quarter missed expectations as losses and expenses went up. Even though revenue fell overall by 10% thanks to weaker product sales, service and license revenue improved. Backlog also improved to $342.8 million, compared to $326.9 million from the previous quarter.

Plug Power (PLUG)

Profitability eludes Plug Power at this time. Last quarter, the firm reported a loss. On the positive side of things, bookings doubled over the previous year to $80 million. Plug Power expects to ship over 650 GenDrive units in the current quarter. It also aims to generate revenue above $70 million this fiscal year. If Plug is profitable by the end of this year, short sellers (the stock has a short float of 22.66%) could get squeezed.

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!
DOW 17,083.80 -2.83 -0.02%
S&P 500 1,987.98 +0.97 0.05%
NASDAQ 4,472.1080 -1.5890 -0.04%

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