FuelCell Energy (FCEL) Stock: Should You Buy The Dip?

FuelCell Energy FCEL Stock News

FuelCell Energy Inc (NASDAQ: FCEL) is having a rough day in the market today, down nearly 5%. The declines come after the company issued a relatively mixed press release. On the positive side of the coin, the company has regained compliance with the NASDAQ. On the negative side, financial results have been delayed. Nonetheless, there’s good reason to consider buying the dip. Here’s how I see it:

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FCEL Stock Dips On Mixed Press

As mentioned above, FuelCell Energy issued a bit of a mixed press release this morning. First and foremost, the company said in the release that it received a letter from the NASDAQ Stock Market, notifying it that the company has regained compliance.

Previously, FCEL struggled to maintain a minimum bid price of over $1 per share. However, recent gains have led to a price well over $2 per share, remedying the issue. As such, the company is no longer in danger of being delisted from the NASDAQ.

This is great news. After all, being listed on the NASDAQ provides the company with access to investors that OTC listed companies just don’t have.

Unfortunately, in the same release, the company informed investors that a key event would be pushed back. Previously, investors expected that the company would issue its financial results tomorrow, January 14, 2020. However, the company announced that it will be pushing the earnings release to January 22, 2019.

While the delay is annoying, in my view, it’s not a very big deal. The truth of the matter is that FCEL doesn’t necessarily have to issue its financial results until January 23, 2020. While it may be upsetting that the release will come 9 days later than expected, it will still be released well within the required time, avoiding any real consequences of a late filing.

Why Buying The Dip May Be A Good Idea

With the delayed results in mind, investors are concerned and the stock is down. Of course, if all goes well ahead, buying FuelCell Energy now would provide a discount. Moreover, there’s reason to be excited ahead.

Along with the release, the company said that it will be providing a presentation of its go-forward strategy. This is important as recent news from the company has been overwhelmingly positive.

Should the financial results prove to be positive, and the go-forward strategy be one that investors can get behind, this thing could scream for the top!

It’s also worth mentioning that I wrote an article last week about FCEL. While I’m not going to rewrite the article, there are a few key points to keep in mind. With increasing demand for clean energy, the company’s recent announcement surrounding 7-year stacks, and geopolitical concerns that could push demand higher, FCEL is a good place to be right now in my opinion.

All in all, the stock is well worth being on your watch list.

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