Ballard Power (BLDP) Stock Soars on Agreement with Guangdong Nation
NEW YORK (TheStreet) -- Shares of Ballard Power Systems (BLDP) - Get Report are spiking 17.91% to $1.64 on heavy trading volume Monday morning as the company signed an agreement with Guangdong Nation Synergy Hydrogen Power Technology for a fuel cell stack production operation in Yunfu, China.
The fuel cell stacks will be packaged into locally-assembled fuel cell engines and integrated into zero-emission buses and commercial vehicles in China, according to a company statement.
The deal has a contemplated minimum value to Ballard of $168 million over 5 years.
The transaction is expected to close late this year, at which time a joint venture will be created to undertake the stack manufacturing operations. The venture will be owned 90% by Synergy and 10% by Ballard.
Burnaby, Canada-based Ballard is engaged in the design, development, manufacture, sale and service of fuel cell products.
About 3.45 million of the company's shares changed hands so far today vs. its average 30-day volume of 597,069 shares per day.
Separately, TheStreet Ratings Team has a "Sell" rating with a score of D on the stock.
The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow, poor profit margins and generally disappointing historical performance in the stock itself.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: BLDP