What a farce it was that shortsellers took advantage of toxic financing (i.e. preference shares convertible into ordinary shares) to depress FuelCell Energy’s share price and at the same time get more and more of the company’s shares onto the market – at least, this is what I think happened not too long ago. In addition, some project financing was subject to conditions that could be considered questionable (e.g. minimum return, guarantees). In addition, bank loans were used as leverage against the company, as reference was made to safety margins and termination clauses, while FuelCell did not approach restricted cash. A vicious circle.

In my opinion, the business consultancy Huron did a good job in this respect, reappointed the Executive Board, had debts paid off on the stock exchange via a share issue and completely repositioned the company. Jason Few has been the new President and CEO since August. Since the end of October Huron is again no longer there.

“FuelCell Energy is well positioned to participate in the global future of clean energy. […] We want to revitalise our customer relationships and the FuelCell Energy brand at the highest level and promote the fuel cell as a forward-looking solution in the global clean energy sector.”

Jason Few, FuelCell Energy

…

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

February 12th, 2020: First sentence exchanged.