The following is an excerpt from Canaccord Genuity’s Morning Coffee newsletter.
Since 2000, fuel cell stocks have been high on the list of sectors that experienced significant unrealistic investor expectations, leading to a substantial boom, inevitable bust and a long grind for the survivors, to what now is seemingly a second leg up.
Shares of Ballard Power Systems Inc.
, Stock Forum
) had another fantastic week, up 40%. Year-to-date, shares are up nearly 250%. Since the end of February, Ballard insiders (inclusive of CEO, CFO and other directors) have been fairly active, exercising rights and disposing of shares in the public market.
On Monday, the stock jumped 37% to $8.01, leaving a market cap of $871.6 million, based on 109.4 million shares outstanding. The 52-week range is $4.18 and 72 cents.
Anthony Guglielmin, Ballard’s CFO is scheduled to discuss the company’s strategic direction today (Monday) at the 26th
Annual Roth Capital Conference in California.
According to public filings, Ballard’s CEO John Sheridan has exercised 590,788 options/rights at prices ranging from $1.34 to $2.10 per option/right and sold 745,833 common shares of Ballard at prices ranging from $3.94 to $6.12 per common share.
Guglielmin exercised 142,988 options/rights at prices ranging from $1.76 to $180 per option/right and sold 125,000 common shares of Ballard at prices ranging from $5.75 to $6.25 per common share.
Both Sheridan and Guglielmin continue to hold significant interests in Ballard. At the end of February, the maker of clean energy fuel cell products, reported strong operating results in Q4, on both the top line and bottom line.
Revenue was up 5% to $17.3 million, grows was up 12 points to 34% and adjusted EBITDA improved significantsly from $3.2 million to $0.2 million.
Management highlighted that these results continued the strong positive trend in Ballard’s operating performance posted through the earlier quarters of 2013.
Commenting on the quarter, Sheridan stated, “When viewing this 2013 performance in the context of the past two years, it is clear the company is executing strongly, on the right strategy.
Executing on our three-level business model over the past two years, with product sales, engineering services and IP licensing, Ballard has posted 62% revenue growth, a doubling of gross margin and 70% improvement in Adjusted EBITDA.”
The company expects the positive growth trend to continue in 2014 with similar trajectory, as Ballard continues to pursue its growth strategy for fuel cell product sales, engineering services and IP licensing.