Bloom Energy – on the right track

In the first quarter, Bloom was able to generate a good US$ 200 million in sales. The bottom line was a minus of US$ 8.8 million or minus US$ 0.22 per share. Nevertheless, a noticeable improvement compared with the same quarter of the previous year, in which a minus of US$ 22.5 million was reported. This represents growth of around 18.5 percent. The cash position is very healthy, amounting to US$ 327.9 million plus US$ 42 million from Power Purchase Agreements (PPAs).

According to its own statement, the company is working on increasing the internationalisation of its network-independent FC power plants, which are used by companies such as Apple Computer. The proportion of institutional investors with over 40 percent is very healthy. This is why Bloom is also a key FC investment, as large investors primarily focus on companies with higher stock market valuations (liquidity in trading shares). The share should break out of the fluctuation range of US$ 12 to 15 this year. I’m expecting prices of US$ 20 or more.

Risk warning

Every investor must always be aware of his own risk assessment when investing in shares and also consider a sensible risk diversification. The FC companies and shares mentioned here are small and mid caps, i.e. they are not standard stocks and their volatility is also much higher. This report is not a buy recommendation – without obligation. All information is based on publicly available sources and, as far as assessment is concerned, represents exclusively the personal opinion of the author, who focuses on a medium- and long-term valuation and not on a short-term profit. The author may be in possession of the shares presented here.

Author: written by Sven Jösting, May 24, 2019

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