FuelCell Energy FCEL Stock News

FuelCell Energy Inc (NASDAQ: FCEL) took a bit of a dip last week. When I saw it, I saw an opportunity. In fact, I told everyone reading this site to buy the dip. Well, if you followed my direction, you’re happy today. The stock is up more than 15% early on with more room to run. Here’s how I see the investment playing out.

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FCEL In The Short Term

In the short term, FuelCell seems to have more room to run. However, keep in mind, the stock is a penny stock, which makes it highly unpredictable. With that said, the stock does have the potential to generate serious gains ahead.

At the moment, FCEL is coming off of lows that were fueled by upsetting financial results. In the most recent quarter, revenue took a dive, leading to serious concerns among investors. Nonetheless, the declines in revenue happened for a good reason.

At the moment, the company is in the process of changing its focus from a fuel-cell technology sales company to a company that is focused on the development of utility-scale, clean energy production facilities.

This shift in focus led to serious declines in sales, as expected, which caused the revenue declines that were concerning. Nonetheless, it also led to some serious opportunity.

In the short term, I expect that we will see numerous updates surrounding utility-scale developments that the company is working on. Each and every update has the potential to be the catalyst for a short squeeze.

While we will see some profit taking from time to time, in my view, the declines caused by profit taking in FCEL will only expand the long term opportunity.

FCEL In The Long Run

In the long run, the potential surrounding FuelCell Energy is even more exciting. The company’s most recent news opens the door to serious potential growth ahead.

First and foremost, about a month or so ago, FCEL announced the development and launch of new extended-life, utility-scale, fuel cell stacks. Previously, fuel cell stacks were expected to have a lifespan of around 5 years. The new stacks have a span of around 7 years.

The extended life of the stacks means that utility scale clients will be able to greatly reduce the maintenance costs associated with generating energy with fuel cell technology.

Moreover, the company’s new stacks generate about 40% more power over their life. This is a big deal too! After all, a 40% larger return on investment with a minimal expense increase in purchasing the fuel cell stacks, offers a greater opportunity for utility companies to turn a profit with this technology.

With the competitive advantage in mind, FCEL is making the right move when it comes to restructuring to focus on utility scale projects. Not to mention, increasing demand for this technology is only expanding the opportunity for investors.

All in all, FCEL is in the right place, with the right technology, at the right time. While, like any other stock, we will see ups and downs, the long term picture is becoming a pretty bright one!

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