Capstone Green Energy Corp (fka CGRNQ)

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What To Expect Next From Fuel Cell Stocks? – Plug Power Inc (PLUG), FuelCell Energy Inc (FCEL), Ballard Power Systems Inc. (USA) (BLDP), Capstone Turbine Corporation (CPST)

by Chad Roskin / April 14, 2014

Wall Street dropped in a volatile session on Friday, with the NASDAQ closing below the 4,000 mark for the first time since early February. Selling heightened late in the afternoon, with the biotech and other momentum stocks again leading the NASDAQ sharply lower. JPMorgan’s disappointing earnings also gave market participants a reason to sell some bank stocks.

For the week, the S&P 500 fell 2.6 percent and the Nasdaq lost 3.1 percent, the biggest weekly decline for both indexes since June 2012.

Friday’s “decline is what we’ve been seeing all week. The weakness in the biotech and momentum names is getting investors worried about where the market is headed in the near-term, eventually triggering a selloff in everything,” said Robert Pavlik, chief market strategist at Banyan Partners in New York.

High-growth companies, mostly in the tech and biotech sectors, led 2013's rally, leaving them with some of the market’s highest valuations.

“Valuations are going to start becoming relevant again, at least for a while,” said Uri Landesman, president of Platinum Partners in New York.

“When momentum turns, it turns hard and it’s unclear when people will step in and support them,” said George Pearkes, an analyst at Bespoke Investment Group.

Investors have turned to defensive areas of the US market such as utilities and consumer staples while high-growth stocks suffered their heaviest bout of selling since late March, when investors first questioned excessive valuations and sought to limit their exposure.

Stocks of companies that develop and sell fuel cells were gone crazy in earlier this year and have been getting ditched following broader market selloff.

In recent market activity, Plug Power Inc (NASDAQ:PLUG) avoided U.S. selloff and ended Friday’s trade 3.55% higher. According to a Seeking Alpha post on Sunday, the stock “have risen nearly 40-fold and the company has a market cap of $1.2 billion despite 12 years of losses. It is unclear why PLUG’s future will be brighter than its past.”

FuelCell Energy Inc (NASDAQ:FCEL) dropped 0.43%, trimming all gains made last week after a report disclosed the U.S. Department of Energy has awarded FuelCell $3M to accelerate the development of fuel cells being used for heat and power.

Ballard Power Systems Inc. (USA) (NASDAQ:BLDP) and Capstone Turbine Corporation (NASDAQ:CPST) were dragged down by extended selloff in momentum stocks.

http://www.marketsemerging.com/what-to-expect-next-from-fuel-cell-stocks-plug-power-inc-plug-fuelcell-energy-inc-fcel-ballard-power-systems-inc-usa-bldp-capstone-turbine-corporation-cpst/177094/