The Jeffries aggreement permited FCEL to issue up to $500 million dollars in shares. As of last report ( as at March 31st) $128 million in shares have yet to be sold.
The cash burn of the company suggests they have sold close to the remaining shares into the market thereby diluting shareholder value.
The abyssmal quarterly report demonstates what analysts have been saying for over a year. The losses exceeded estimates by 60% rising to $-.08/sh from $-.05 estimates.
The Bulls virtually guaranteed they would beat estimates.
I oftern stated it would be worse.
Now , FCEL will extend the agreement with Jefferies and fwith another up to $500,000,000 share issuance .
So while BULLS promoted the stock as a BUY, the company was selling shares to them. More of that is on the way.
Expenses, settlements and a lack of offsetting sales served to contribute to the ongoing losses. According to analysts, FCEL will continuing to lose money through 2025. Operating Expenses increased from $7+ mil to $20.+ mil. from the prior quarter. Hirings!!!!!!
The excuses and the promotions are beginning. However theresno escapefrom the results.
I would not be surprised if analysts drop their Hold ratings now that its clear FCEL HAS NO NEAR OR INTERMEDIATE TERM CATALYSTS TO MOVE THE STOCK HIGHER as B. Riley has said.
Watch for lower sh prices coming and avoid the promotions.
Checlk the record and the results
