Ballard Power Systems (BLDP) Stock in Sharp Decline After Cell Stack Deal
NEW YORK (TheStreet) -- Shares of Ballard Power Systems (BLDP) - Get Report are down 16.87% to $1.67 on heavy trading volume after the company signed a deal with Guandong Nation Synergy for a jointly-owned venture to manufacture fuel cell systems in China, Bloomberg reports.
Over 7.06 million shares of Ballard have been traded so far today vs. the company's average of 1.21 million shares per day.
Shares of the Canadian supplier of fuel cell systems surged over 45% to $2.01 at yesterday's close. Today the stock is losing nearly all the gains it acquired in the last trading session.
The $168 million deal will give Ballard 10% ownership, with the 90% majority going to China's Guangdong Nation Synergy. The companies will build a factory in southern China to manufacture fuel cell stacks with Ballard's technology.
Separately, TheStreet Ratings rated this stock as a "sell" with a ratings score of D.
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.
You can view the full analysis from the report here: BLDP
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.