FuelCell Energy (FCEL) Stock Recovers From Short Seller Report

FuelCell Energy FCEL Stock News

FuelCell Energy Inc (NASDAQ: FCEL) is running for the top early on in the market today, recovering from the declines the stock saw yesterday. The declines were the result of a report from a short seller, but the stock is gaining as the claims prove to be less than factual. Here’s what’s going on:

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FCEL Stock Heads Up Following Misleading Report

Early this morning, FuelCell Energy issued a press release outlining why a short report that was released yesterday is “misleading” and “facturally incorrect.” In the release, the company said that it “emppatically denies these claimes related to its disclosures with respect to the LIPA 2 and LIPA 3 power project awardes.

The short seller suggested that the awards have been part of the FCEL backlog and will add no value for the company or its investors. In the release, the company said that the awards are not, nor have ever been, part of its backlog, and have no impact on the company’s 2022 financial goals surrounding revenue growth and adjusted EBITDA.

In the release, the company said that its LIPA Yaphank project is currently under construction and is the center of a signed power purchase agreement. Moreover, this project is included in the backlog and 2022 revenue projections.

Moreover, FCEL said that it does not expect for the New York Climate Leadership and Community Protection Act to negate the LIPA 2 and LIPA 3 awards and is disputing the contention by LIPA.

Moreover, the company said that these projects should move forward and has continued to pursue them in good faith. In fact, the company has already begun advancing the interconnect application process. While there is no assurance that any awards will result in executed power purchase agreements, the company remains positive on the potential impact of these projects.

The Bottom Line

The bottom line here is that it’s not uncommon for short sellers to dissiminate misleading data in an attempt to skew overall investor opinion. That seems to be what’s happening around FuelCell Energy.

Nonetheless, the company’s dispute to the short report is clear, and seems to be accurate. As a result, investors should be excited about the potential future of the company.

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