Replies to post #27560 on FuelCell Energy Inc (FCEL)

[AgeOfReason]

Ah, I see what you saying. Those are very good points. There have been times when I thought some of FCEL's published statements of their intentions were possibly dishonest or misleading, but I didn't dwell on that idea. Thank you very much for clarifying.

I am reminded of the transcript of the Q2 FY2020 conference call in which FCEL executives/directors seemed to be saying (or implying) that the maintenance costs which resulted in the generation gross margin being a loss would not happen again (to the extent of generation costs exceeding generation revenues), yet it happened in Q3 FY2020 anyway.

Maybe FCEL allowed the various underwriting companies to do short selling, even naked short selling, so they would be more inclined to underwrite FCEL's offering - even though the short selling would hurt many FCEL investors.

I guess I should start reading some of FCEL published statements with much skepticism and even suspicion from a critical (in the negative sense) point of view.

[AgeOfReason]

It puzzles me that FCEL so frequently raises money by offering shares. I thought they had plenty of funds already and that it would be sensible for them to wait till the stock got over (or at least very close to) $3/share before having another share offering.

Perhaps in order to get started on the new projects in CT they needed to have the recent share offering. Still, I think they could have waited a few days before announcing the offering, unless they thought the stock price would have dropped quickly anyway within a few days of the announcement of the new projects even if FCEL didn't announce the offering the same day that the new projects were announced.

If FCEL does manage to grow their generation portfolio's installed Megawatt capacity at a large annual percentage growth rate (such as doubling by the end of 2021 the capacity over what they had in 2019), they will need to raise lots of cash to achieve such - even if their generation gross margin becomes consistently profitable. Companies that grow very rapidly even when they are profitable (unless perhaps their profit margin percentage is higher than than their growth rate) have to raise lots cash (and at rapidly increasing amounts) to maintain the growth rate.