|Globe says scorching hot Ballard faces dot-com fears|
Ballard Power Systems Inc (C:BLDP)
Shares Issued 234,370,877
Last Close 1/15/2020 $13.84
Thursday January 16 2020 - In the News
The Globe and Mail reports in its Thursday edition that Ballard Power Systems seems to have travelled back in time by two decades, when the limitless potential of hydrogen fuel cells propelled the company to the top of the Canadian stock market. The Globe's Tim Shufelt writes that Ballard survived the 1990s tech boom and 2001's crunch. It has recently found new life as a beneficiary of China's aggressive efforts to reduce air pollution, partly through zero-emission buses and trucks. "People are frothingly optimistic about China," said Craig Irwin, an analyst at Roth Capital. As a result, "The valuation on Ballard has separated from reality." Over the past 12 months, Ballard's share price has more than tripled, making it the single best performer in the S&P/TSX Composite Index and bestowing on the company a $3.2-billion valuation. The persistent absence of profit is proving to be little deterrent for the company's supporters. "Investors are likely anticipating that [Ballard] will hit break-even and start moving into positive earnings within the next two years," said Tim Nash a financial planner at Good Investing. Fuel-cell skeptics, however, worry about a replay of the reckoning that investors faced 20 years ago.
© 2020 Canjex Publishing Ltd.