Boston, MA 03/26/2014 (wallstreetpr) – The excitement in the fuel-cell sector is supposed to take up with it stocks like Ballard Power Systems Inc. (USA) (NASDAQ:BLDP), Plug Power Inc (NASDAQ:PLUG) and many others like them. Of course this has been the case in the past months.
The past months and even quarters have seen shares of fuel-cells stock jump considerably and earnings assume positive pattern. All these have been happening as the companies continue to prove their case that fuel-cells energy are the next big thing, if they are not big already.
Fuel-cells companies are touting their technology as source of ultra-clean, efficient and cheaper energy. Such claims or facts if you like, resonate well with a world that is trying to reduce environmental degradation through cutting on fuel emissions.
As if the world is listening and giving a nod to the technology that delivers alternative energy as Ballard Power Systems Inc. (USA) (NASDAQ:BLDP) and its peers tout it, there have been orders coming for that technology. This is mostly coming from commercial customers seeking to attain energy compliance requirements as well as cutting on operating costs.
Of late, demand for fuel-cells electricity has been seen coming from stores operators like Wal-Mart Stores Inc (NYSE:WMT) which runs many forklifts and which can save a great deals of money using the less expensive fuel-cells power. Players in the auto manufacturing industry are also seeking use of fuel-cells to power their products.
But this is the problem
Ballard Power Systems Inc. (USA) (NASDAQ:BLDP) looks like it has exhausted its energy to rally upwards. The slow adoption of fuel-cells technology and lack of significant business coming to it do not come across as positive news to keep investors eager to buy. Thus, the stock can be seen facing south today.
Poor fundamentals
Shares of Ballard Power Systems Inc. (USA) (NASDAQ:BLDP) are looking deflated because the stock lacks solid growth catalysts. In fact, all along it has benefited from the glory of peers, which have always been interpreted by analysts and investors to mean validation of fuel-cells energy, thus potential cash-cow.
Yet, the stock looks weak in cash flow position, return on equity and net profit margins, all of which trail the industry average as well as the S&P 500 performance.
What next?
Perhaps calling Ballard Power Systems Inc. (USA) (NASDAQ:BLDP) a falling knife can be a bit cruel, but investors should do due diligence before putting their money in the stock.
