Energy & Mining

Will Deal Reverse Fortunes for FuelCell Energy Inc (NASDAQ:FCEL)?

FuelCell Energy Inc (NASDAQ:FCEL)

FuelCell Energy Inc (NASDAQ:FCEL)

FuelCell Energy Inc (NASDAQ:FCEL) shares gained almost 7.5% on news of an award by PSEG Long Island for a 39.8 megawatts fuel cell project under the Fuel Cell Resources Feed-in Tariff. The Long Island Power Authority (LIPA) will, under the PSEG program, purchase power from the fuel cell projects under 20-year power purchase agreements. FuelCell Energy Inc (NASDAQ:FCEL) will install, operate and maintain the fuel cell power plants.

NASDAQ:FCEL
Six Month Daily Candle Bar Graph for $FCEL

FuelCell Energy Inc (NASDAQ:FCEL), headquartered in Danbury, CN, aims to develop clean, efficient, and affordable fuel cell solutions. FuelCell provides comprehensive turn-key solutions for their customers and includes everything from the design and installation of a project to the long-term operation and maintenance of the fuel cell system.

The local municipality of Brookhaven will benefit from incremental revenue as three vacant commercial parcels of land are converted to revenue producing sites. Next steps in project development include working with the utility on the interconnection agreements, power purchase agreements, and finalizing site engineering. The SureSource 4000 is the largest power plant in FuelCell Energy Inc (NASDAQ:FCEL)’s product portfolio, generating 3.7 megawatts of clean power with leading electrical efficiency of approximately 60 percent. This enhanced-efficiency fuel cell system is designed for applications focused on clean and affordable power driven by the economics of high system electrical efficiency rather than thermal efficiency.

FCEL shares have done well for the past month, generating gains of over 22% but for the year are down over 70%. FCEL shares have been heavily diluted since 2012 when 13.79 million shares were outstanding. Each year the number of outstanding shares increased and by 2016 the number stood at 29.77 million. In the meantime, sales have been decreasing. In 2013 the company posted $187.7 million in sales but only $108.3 million in 2016.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

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About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.

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