FuelCell Energy Inc (NASDAQ: FCEL) is climbing in the market this morning, trading on early gains of more than 10%. A search of the SEC and Yahoo! Finance will show that the run isn’t being caused by any company specific, catalystic news. So, what’s the deal?
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My Opinion On Why FCEL Stock Is Running Today
With no news out, anything shared would be nothing more than my opinion. However, here’s what I’ve come up with.
First and foremost, FuelCell stock is likely seeing some support as part of a sympathy bounce due to an order received by a competing supplier of fuel cell technology.
News broke this morning that PowerCell Sweden AB received a new order for 52 fuel cell stacks from a Chinese supplier to the automotive industry. The deal is valued at around $140,000.
So, what does this have to do with FCEL? Well, nothing on a direct basis. However, on an indirect basis, the news is huge. The news shows that big players in China are interested in fuel cell technology to provide clean energy.
Moreover, it also shows that the auto industry continues to work toward the use of fuel cell technology in environmentally-friendly automobiles. At the end of the day, any insinuation of increasing demand for this technology is great news for FCEL.
Other Factors Likely Driving Gains
For some time, the world has been looking for clean energy alternatives to crude oil. Due to declines in the price of crude after the supply glut led to a crash in the value of the liquid black gold, demand for oil shifted up, likely slowing growth in demand for clean energy.
However, this is quickly starting to change. Over the past few weeks, we’ve seen costs at the pump climbing as larger than expected oil stockpile declines hit the United States. Moreover, OPEC is expected to flex its muscles in next week’s meeting, which could put more upward pressure on oil.
As oil moves up, demand for clean energy alternatives will likely climb as well. After all, even for those that don’t care about clean energy, when clean energy provides savings over traditional fossil-fuel derived energy, they will likely want to dive in.
All in all, things are looking good for the clean energy industry ahead, and for FCEL, that only means that more opportunities are coming.
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