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Ballard Update |
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For you investors with an interst in Ballard Indutries, one of the largest manufacturers of Hydrogen Fuel Cells this article ftom the investor blog Ctows Nest ahould be of ome interest. The figures on China's progress towards a greener environment put many countries in the world to shame when it comes to commercial vehicle fleets using non fossil fuels. Its a short article but interesting none the less.
Ahoy Crow's Nesters, I wanted to give you the skinny on Ballard Power Systems (NASDAQ: BLDP). It's quite well positioned to be a leader in the hydrogen fuel revolution. But these things take time and will go through some turbulence. While we're up 600%, the stock has fluctuated recently, and here's why... Ballard went to investors and said they wanted to raise $350 million from the sale of almost 10 million shares in stock. However, they decided to raise that by more than half. Instead of nearly 10 million shares, Ballard will now go for around 17. Its offering price is the same, at $37. That means that shareholders are diluted, but it will bring Ballard $630 million in cash that they can put to use increasing their presence in China. That is what's important for long-term investors like ourselves. The China growth is expontential. While the U.S. currently has the highest number of fuel cell electric vehicles (FCEVs) on the the road, China has recorded the most new sales in 2019. China is far ahead in the buses and light-duty trucks segments that we've covered here many times before. We aren't in Ballard for consumer vehicles. China has accounted for 97% of all fuel cell buses and 98% of all fuel cell trucks around the globe. They have also supported fuel cell technology to offset their pollution problems, and have projected 1 million FCEVs and 1,000 hydrogen refueling stations by 2030. Ballard controls 45% of China's FCEV market and will be properly positioned to profit from that trend. The company projects $5.2 billion in revenue in 2030. I know that sounds like a long time, which is why Ballard is a long-term play. $5.2 billion would be an compound average growth of 46% every year. In the last five years, Ballard Power has grown its revenue by around 21%. If the company can get anywhere near that, it will continue to soar. I would recommend watching the presentation from CFO Tony Guglielmin in his Fireside Chat with Water Tower Research.
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