x min read

Ballard Power Systems Inc. (USA) (NASDAQ:BLDP) Keeps Making New Highs

Ballard Power Systems Inc. (USA) (NASDAQ:BLDP) Keeps Making New Highs
Written by
Jarrod Wesson
Published on
November 6, 2017
Copy URL
Share on LinkedIn
Share on Reddit
Share on Twitter/X
Share on Facebook

Ballard Power Systems Inc. (USA) (NASDAQ:BLDP), the provider of PEM fuel cell technology solutions, keeps surprising the market.From the five-months highs that were seen in September, the share price has gone even higher. Company LogoAt the moment, the stock is worth $5.60, which represents approximately 180% stock returns in 2017.Those readers who were able to see our first article published in 2016 and acted should be quite happy right now.Have a look at the recent share price action before we explain what's new: 1 year chart for BLDPLet's provide some background for those who are getting to know the company right now. Ballard Power Systems Inc. was founded in 1979 and is headquartered in Burnaby, Canada. The company focuses on "the design, development, manufacture, sale, and service of fuel cell products for a variety of applications, focusing on motive power (material handling and buses), and stationary power (back-up power and residential cogeneration)."The key is the technology being developed.BLDP has developed a disruptive technology. It is based on fuel cells and is an environmentally clean electrochemical device that combines hydrogen fuel with oxygen (from the air) to produce electricity.

We commenced covering the stock after its competitor Plug Power Inc. (NASDAQ:PLUG) signed a supply agreement with Amazon. It made PLUG's share price spike. Since PLUG's technology is similar to that of BLDP, we knew BLDP was going to follow PLUG.After Amazon showed interest in this technology, the market became extremely interested and the share price took off every time new developments were released.Recent DevelopmentsOn September 24, 2017, the company announced that the company’s wholly owned subsidiary, Protonex Technology Corporation, had received approval for its Mobile Soldier Power Program of Record to full rate production status, commonly known as “Milestone C”. According to the company, new devices produced by BLDP's subsidiary will improve power and energy management on and around the soldier. The flagship product seems to be Protonex’ Squad Power Manager Kit (SPM-622), which consists of wearable batteries, and man-worn power and data distribution devices. Paul Osenar, President of Protonex, explained the announcement in following words:“Our Squad Power Manager is one of the solutions that fill this gap. Lightening the load of troops by eliminating many of the batteries, adapters and chargers they carry was a requirement that we identified years ago. We are excited to work with the Army to provide innovative and practical power solutions like our Squad Power Manager." SourceWe believe that the market appreciated the announcement. The share price was pushed up from the level of $4.80 to hit the share price level of $5.0.The key is that the revenue potential increased. It is not only that the company will be able to provide technology to the army, but we believe that the key is that companies working for the army or other armies around the world will be interested in BLDP's technology.On October 4, 2017, it was noted by the company that Randy MacEwen, President & Chief Executive Officer, would be presenting the company in the TSX Industrial & Clean Technology Investor Day in Toronto. We believe that nothing remarkable was said in the presentation, as the share price did not really move. However, we need to drew the attention of our readers to this type of events. Usually, directors give industry insight or release significant information that make the share price move. BLDP has released the date of these presentations, so we will need to be alert on the next one.On November 1, 2017, the company announced financial results for the third quarter ended September 30, 2017. They were extraordinary. The revenue improved by 54% year-on-year amounting to to $31.9 million, while the gross margin was 32%. That's not all. In 2017, revenue increased by 48% amounting to $81.0 million, while the gross margin also increased by 36%.What about the new orders?The company reported an order backlog of $236.8 million, including $82.4 million that is expected to be delivered in the next 12 months. Thus, it was noted that the company seems well positioned to deliver "strong full-year 2017 results and to maintain its positive trajectory into 2018."Without any doubt, the share price reaction that we could see in November was created by the release of the new financial figures. More than 6 million shares changed hands in only one session. Have a look at it:

1 month chart for BLDPConclusion

Currently trading with a market cap of $996 million, BLDP is an exciting story among small caps. With $60 million in cash and only $55 million in total liabilities, the financial situation seems strong. We believe that both the growth in revenues and the new agreements signed with other organizations are driving the share price up. To sum up, BLDP keeps delivering outstanding announcements to the market and there is a lot to like in the technology being developed. Every dip has proven to be a buying opportunity. Expect this trend to continue.Be sure to check out our coverage on BLDP!We will be updating our subscribers as soon as we know more. For the latest updates on BLDP, sign up below!Image courtesy of vivafox via FlickrDisclosure: We have no position in BLDP and have not been compensated for this article.

Discover Hidden Gems

Don't miss the next big opportunity. Subscribe for timely alerts on potential market movers.