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Are We in a Fuel Cell Bubble?

By Joel South and Taylor Muckerman – Mar 12, 2014 at 2:19PM

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Fuel cell manufactures are soaring, but are we in a serious bubble?

Today, we look at three extraordinary stocks that have investors bewildered by incredible surges in share prices as well as off-the-charts volatility. Shares of Plug Power (PLUG -4.54%), a manufacturer of fuel-cell systems, have appreciated 3,200% over the past year. With such a rapid rise and heavy media coverage, investors are wondering if the business fundamentals warrant such price appreciation, or are we in a fuel cell bubble? The exuberance and volatility are not exclusive to Plug Power; FuelCell Energy (FCEL -4.30%) and Ballard Power Stations (BLDP -1.52%) are also along for the ride. Today, we answer a question from a Foolish reader wondering, "How do you identify a bubble"? 

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This segment is from Tuesday's edition of "Digging for Value," in which sector analysts Joel South and Taylor Muckerman discuss energy and materials news with host Alison Southwick. The twice-weekly show can be viewed on Tuesdays and Thursdays. It can also be found on Twitter, along with our extended coverage of the energy and materials sectors: @TMFEnergy..

Joel South has no position in any stocks mentioned. Taylor Muckerman has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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