FuelCell Energy, Inc. (NASDAQ : FCEL)
FuelCell Energy, Inc. (FCEL), a fuel cell power plant company on Friday gapped up over 18% in pre market trading on news of the Beacon Falls Energy Park draft decision being approved by the CSC, according to analyst Jeffrey Osborne. Cowen has FCEL as an Outperform rating with a price target of $23. When completed this will be the world’s largest fuel cell power plant at 63.3 megawatts, surpassing the 59 megawatt fuel cell plant in South Korea.
Analyst Comments on Beacon Falls Project
“If final approval is granted we estimate the total value of this project to be ~$500mn, split between $200mn in equipment revenue and $300mn in service revenue. The project will likely be in phases with construction beginning by 2Q16 and providing a steady order flow through mid-2018.” Street Insider
FCEL Technical Analysis
FCEL gapped up in price on Friday to $6.30, up from the prior day’s close of $5.32, which is a 18% increase on favorable news. Taking a look at the daily chart, we can see the last time FCEL traded above this price level was on December 14th when it traded at $6.38. Taking a closer look at the daily chart we can see that FCEL tanked the whole month of December. On December 1st it was trading at $10.44 and tanked all the way to its 52 week low of $4.90 on December 31st, equivalent to a 53% drop in price. Since then FCEL has been slowly creeping off of the lows. The next interesting price point would be $7.06 reached on December 9th which was the high of the last mini spike up. FCEL has a float of 21.96 million shares and is trading over 3 times the normal daily trading volume. FCEL hit pre market highs of $6.38, but gave back $0.08 at the open. For trading purposes, my entry point would have been $6.40 looking for a run to $7. My stop loss would have been $6.25, fearing anything below that and the stock would start to fill in the gap up.
FuelCell Energy Profile
FuelCell Energy, Inc., together its subsidiaries, designs, manufactures, sells, installs, operates, and services stationary fuel cell power plants for distributed power generation. The company is also involved in the development, design, production, and sale of fuel cell products under the Direct FuelCell name. Its power plants electrochemically produce electricity and heat using various fuels, including natural gas, methanol, diesel, biogas, coal gas, coal mine methane, and propane. The company serves electric utilities, independent power producers, and governments; and education and healthcare, gas transmission, industrial and data centers, commercial and hospitality, oil production and refining, wastewater treatment, food and beverage, agriculture, and landfill gas sectors. It has an installed base and backlog of approximately 300 megawatts. The company operates in the United States, South Korea, England, Indonesia, Germany, Canada, and Spain. It has strategic alliances with POSCO Energy; The Fraunhofer Institute for Ceramic Technologies and Systems; and NRG Energy. The company was founded in 1969 and is headquartered in Danbury, Connecticut. Yahoo Finance