Why FuelCell Energy Inc's Shares Went Dark Today
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of FuelCell Energy Inc , who makes fuel cells for large scale commercial applications, fell as much as 15% in early trading after reporting earnings.
So what: Fiscal second quarter revenue fell 9.7% to $38.3 million and net loss more than doubled to $16.6 million, or $0.07 per share. Even after pulling out a derivative loss associated with convertible debt the company lost $10.7 million, which was an increase of $2.5 million from a year ago.
Now what: This is supposed to be a year when fuel cells finally gain some respect in the market but with companies losing money quarter after quarter it's hard to be bullish on their long-term prospects. FuelCell Energy in particular has been talking about improvements for years but can never seem to make the turn to a profit. Until I see some sort of long-term financial viability and the end to dilutive share offerings I'll stay away from the stock and nothing from today's announcement changed that view.
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The article Why FuelCell Energy Inc's Shares Went Dark Today originally appeared on Fool.com.Travis Hoium has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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