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Ballard Power Systems Inc. (USA) (NASDAQ:BLDP) Is A Big 2017 Winner

Written by

Jarrod Wesson

Published on

September 15, 2017

"There’s plenty of upside on positive update related volatility, and for the next twelve months, Ballard is probably going to be a fun one to trade. As a long term allocation, if the cash starts to flow in (and the latest announcements suggest it’s only a matter of time before it does) then there’s potential there as well." Source

We were not wrong in saying so. The article was published in October 2016 when the shares were valued at approximately $2 and as of today, September 14, 2017, shares are being sold for $4.6. That is 130% share return. Have a look at the recent share price action: 1 year chart for BLDPWhat happened?On September 13, 2017, BLDP stock price jumped after the company noted that the company engineered a fuel cell with little amount of platinum. The development was celebrated by the market, which pushed up the share price by approximately 20%.Recent DevelopmentsFor those who get to know the company here, BLDP designs, develops, manufactures and sells PEM fuel cell technology solutions. It was founded in 1979, owns more than 2,000 patents, and the most significant contract signed to date is $80 million contract with VW/Audi. What's new?On September 13, 2017, the company released a press release noting that it achieved an order backlog of $263.5 million as of June 30, 2017. The company added that it had met expectations, as it represents the aggregate value of orders, for which customers have made contractual commitments. Furthermore, the company held an "Investor & Analyst Day" event in New York City the following day. Readers can subscribe to the webcast on the company's website.The same day, more news was noted. The market got to know about a new Letter of Intent to provide FCveloCity®-HD 100-kilowatt fuel cell engines to power 8 ExquiCity tram-buses to the SMTU-PPP (Syndicat Mixte de Transports urbains – Pau Portes des Pyrénées) and the STAP (Société de Transport de l’Agglomération Paloise). The delivery will be made during the second half of 2019.However, without any doubt, the most astonishing news was delivered one day earlier. On September 13, 2017, the share price spiked; from almost $3.75, the price went to touch the $4.60 level. Additionally, more than 15 million shares changed hands. Have a look: 1 month chart for BLDPOn September 12, 2017, the company announced that thanks to a collaboration with Nisshinbo Holdings, an Environmental and Energy company based in Japan, Ballard successfully incorporated a Non Precious Metal Catalyst for the development of a new 30-watt FCgen®-1040 fuel cell stack product. The new model is expected to be commercialized in late-2017. Non-Precious-Metal-Stack (Source: Company Website)The most interesting information is that the amount of platinum is reduced by more than 80%. It was said to be a step-change in PEM fuel cell technology with high performance at a reduced cost. The platinum contributes 10 to 15% of the total cost of the fuel cell stack as of today. Thus, the potential increase in the earnings per share is expected to be very significant.We believe that the most interesting words were said by Dr. Kevin Colbow, Ballard’s Vice President, as he announced that the company may increase its partnerships in Japan.

“Based on the success of this program and the step-change in PEM fuel cell technology represented by the new Non Precious Metal Catalyst, we are interested in exploring its use for various commercial applications. The work done to date represents an important part of our Japan strategy where we are focused on breakthrough technology development with select Japanese partners as well as penetration into the Japanese hydrogen economy with strategic channel partners in key applications.” Source

Market ParticipantsWe continue to see market participants who noted big stakes in the company. We appreciate this fact:HolderSharesDate Reported% OutValueInvesco Ltd.979,059Jun 29, 20170.56%2,809,899Ubs Asset Management Americas Inc476,349Jun 29, 20170.27%1,367,121Renaissance Technologies, LLC389,500Jun 29, 20170.22%1,117,864Zurcher Kantonalbank (zurich Cantonalbank)348,752Jun 29, 20170.20%1,000,918SourceConclusionAs we noted in our previous pieces on this name, Ballard Power Systems Inc. keeps delivering good news to the market, which reacted by pushing up the share price. We continue to appreciate the share price moves and congratulate those who got in early on the back of our recommendation.Be sure to check out our coverage on BLDP!We will be updating our subscribers as soon as we know more. For the latest updates on BLDP, sign up below!Image courtesy of Humboldt State University via FlickrDisclosure: We have no position in BLDP and have not been compensated for this article.