Forget the quarterly figures for Ballard Power this year. They are only important to analysts. The CEO already said at the beginning of the year and recently underlined in a Bloomberg interview that this calendar year will be used to build capacity in China (production of the LCS stacks together with Weichai), among other things, to position themselves, to strengthen the central production and R&D location in Vancouver, to expand the workforce and to tackle pilot projects as a basis for orders.
After all, the company wants to be the world market leader not only in the next ten months, but also in the next ten years.
Thus, 2019 will not bring more than $100 million in revenue and will, at the end of the day, bring “logical” losses due to investment in corporate growth (R&D). Meanwhile, Ballard can finance all this from its petty cash, which at the end of the third quarter is still in excess of US$ 150 million. The stock exchange is already anticipating all this and anticipating the future in successively rising prices.
Ballard is the clear key investment of the industry. As was apparent from the statements made by CEO Randy MacEwen at the International Hydrogen Symposium in October 2019 in Hamburg, Ballard will achieve very high growth with the LCS stacks from 2020 onwards and advance some projects in the field of rail vehicles with Siemens and CRRC, among others (see interview p. 54). Side events such as the bankruptcy of the Northern Irish bus manufacturer Wrightbus have now been resolved positively (see p. 5). Ballard’s stacks for the 15 FC buses in Aberdeen should now be integrated and delivered as planned.
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read more in H2-international February 2020
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 commitment. 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: Sven Jösting, written beginning of December 2019