Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of FuelCell Energy Inc (NASDAQ:FCEL), who makes fuel cells for large scale commercial applications, fell as much as 15% in early trading after reporting earnings.
So what: Fiscal second quarter revenue fell 9.7% to $38.3 million and net loss more than doubled to $16.6 million, or $0.07 per share. Even after pulling out a derivative loss associated with convertible debt the company lost $10.7 million, which was an increase of $2.5 million from a year ago.
Now what: This is supposed to be a year when fuel cells finally gain some respect in the market but with companies losing money quarter after quarter it's hard to be bullish on their long-term prospects. FuelCell Energy in particular has been talking about improvements for years but can never seem to make the turn to a profit. Until I see some sort of long-term financial viability and the end to dilutive share offerings I'll stay away from the stock and nothing from today's announcement changed that view.