Confidence Swells in Fuel-Cell Companies
A little bit of bottom-line earnings can go a long way in a stock mania.
FuelCell Energy Inc. (FCL) said it eked out net income of less than a penny a share in its latest quarter, but the news was enough to boost the stock 10% on optimism it can develop alternative power plants without losing money.
FuelCell said net income was $5,000, or break-even on a per-share basis, in the quarter ended Jan. 31, contrasted with a loss of $348,000, or 6 cents a share, a year earlier. Its shares rose $6.81 to $74.75 on the American Stock Exchange, bringing their year-to-date gain to 198%.
The Danbury, Conn.-based company’s pollution-free cells convert natural gas or other fuels to electricity through a chemical process similar to that of batteries. In December, FuelCell agreed to build a $2.5-million power plant for the Los Angeles Department of Water and Power, its first U.S. sale.
Other fuel-cell developers continued their ascent, including Plug Power Inc. (PLUG), which plans to sell small power plants to individual homes and businesses starting next year, and Ballard Power Systems Inc. (BLDP), which plans to install them in cars.
Plug--which recently warned that it doesn’t expect to post a profit for several years--rose $10.69 to $117.44; Ballard, which lost 18 cents a share in its latest quarter, surged $11.38 to $114.81. Both stocks have quadrupled this year on Nasdaq.
