FuelCell Energy should actually have generated a quarterly turnover of over 30 million USD in the second quarter, ending April 30th (fiscal year), but it was by then only about 16 million USD with a stated loss in the amount of about 31 million USD, or minus 0.08 USD per share. The management board nevertheless believes that they are on track to achieve a turnover of 300 million USD by 2025, and 1 billion USD by 2030. The order backlog was almost unchanged at about 1.3 billion USD. In the bank lies a formidable 490 million USD, for which a multitude of share placements (64 million new shares) is responsible – in proportion to the stock exchange value of 1.4 billion USD, a healthy basis, even if the question arises as to how these share placements were justified.
Regarding the projects, there are many questions surrounding the schedules for plants reaching the customers. The cooperation with ExxonMobil with regard to carbon capture technology is indeed continuing, however there is no prospectus filed stating how they’ll earn money with it (margin? potential?).
Summary: For me, companies like Bloom Energy (comparable with regard to FC power plant application, albeit a different technology) are more clearly established in terms of their business model. FuelCell Energy will remain, as expressed in the share, a trading value, since neobrokers and trading platforms are strongly active in driving up prices here, as evidenced by the high daily turnover. Whoever approaches trading here highly speculatively will know to use the at times very high daily fluctuations to their advantage, as there is a high volatility directly driven by news developments. Otherwise, rated sufficiently good.
Each investor must always be aware of their own risk when investing in shares and should consider a sensible risk diversification. The FC companies and shares mentioned here are small and mid cap, i.e. they are not standard stocks and their volatility is also much higher. This report is not meant to be viewed as purchase recommendations, and the author holds no liability for your actions. 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 medium- and long-term valuation and not on short-term profit. The author may be in possession of the shares presented here.
Author: Sven Jösting, written June 11th, 2022