Good afternoon everyone,
Bloom Energy stock continues to ride a roller coaster.
The Sunnyvale, CA fuel cell company, which has a production site in Newark, saw its shares rocket to $38 last year after an initial public offering priced at $15. Then came the slide to $10 in a volatile stock market.
The run-up had been puzzling to some, given prospects of continuing losses by the company that has been dependent on sales from states with incentives for fuel cells.
Bloom sees growth coming from plugging holes in the grid in crowded cities, one example being an installation in New York City that avoided expensive upgrades by Consolidated Edison.
The fourth quarter report did little to convince an underwhelmed Wall Street. Bloom has also seen its share of negative publicity here and elsewhere.
The long-term power supply deal authorized by the Delaware General Assembly remains a bone of contention, with a plan to update aging fuel cells at the two Delaware sites also drawing fire from a story-opinion piece by the Axios website.
Bloom officials say the upgrades are built into the power supply deal and did not require full disclosure to shareholders.
On the plus side, numbers in the earnings report showed positive trends, thanks in part to improved efficiencies at the Newark site and stronger sales.
Bloom pointed to stronger sales in Korea, a mountainous country that does not have a lot of room for solar panels and wind generators.
The trends caught the attention of investment house Raymond James. Its recommendation appeared to move Bloom stock to a high as $16.
The Motley Fool investment site took note of the run-up and points to the Raymond James recommendation as the reason.
While taking into account the positive signs coming out of the factory floor and sales book, the commentary says enthusiasm for Bloom is excessive and teased its own stock picks that come with signing up for its stream of Emails.
As of Thursday morning, Bloom shares were down more than 3 percent after a poor opening for the overall market.
If this newsletter was passed along and you like what you have read, sign up here to get your own copy. If you have any comments pro or con, or news tips, hit return, attach the item, or type away. – Doug Rainey, chief content officer.