Move Slow With Fuel Cell Makers or Risk Shock

NEW YORK (TheStreet) -- Fuel cell makers are the lighting up the party. Some have room to grow, but if investors get too excited and chase at these levels they may find more disappointment than profit.

It's easy to get carried away by emotion while watching a stock you wanted to buy continue to make new highs almost every hour for a week straight. It's a trap to fall for the "woulda shoulda coulda" game of thinking about how much money you didn't make because you didn't buy right away.

On Friday, Quantum Fuel Systems Technologies (QTWW) broke above $11 for the first time since September 2011 following a favorable earnings release. That doesn't mean all investors are happy. If you look under "portfolio widowmaker" in the dictionary, there is a picture of Quantum's company logo.

As recently as 2008, shares were changing hands for over $250 a share, and over $800 in 2004. Quantum's run makes LDK Solar (LDK) appear to be a safe and stable alternative energy sleeper for your IRA. On a positive note, if you bought Quantum six months ago when it was under $2 a share you're sitting on a five-banger that has potential to continue higher.

Friday was a fantastic day in the fuel cell space, but Monday was even better for three companies. Fuelcell Energy (FCEL) reached levels not seen almost five years ago. It's been over seven years since Ballard Power Systems (BLDP) traded above $7.38, and Plug Power (PLUG), the one facilitating the renewed interest, also reached multi-year highs. Plug Power became supercharged after Wal-Mart (WMT) expanded its usage of Plug Power's fuel cells after successful testing.

Ballard Power Systems followed suit because it supplies the actual fuel cells to Plug Power. Wal-Mart was clearly positive news for Plug power and Ballard Power but Fuelcell Energy appeared to be a sympathy play. In after-hours trading, Monday, Fuelcell dispelled notions that it wasn't capable of appreciating on its own when the company's earnings release electrified shares another 10% above the already impressive close.

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