Amazingly, a contract worth roughly $3 million boosted the company’s market cap by about $47 million when trading opened this morning. At last night’s close FuelCell’s market cap was around $614 million, and that has jumped to $661 million. That is a ratio of more than 14-to-1.
On Monday, FuelCell shares opened the trading day at $1.93, and shares closed at $2.99 Thursday night. That gain was almost entirely due to a recent contract announcement from Plug Power Inc. (NASDAQ: PLUG) that it has won a substantial new order from Wal-Mart Stores Inc. (NYSE: WMT) for fuel cell-powered forklifts at six of Walmart’s U.S. distribution centers. Analysts see a welter of opportunities for additional business from large warehouse operators and for companies like Plug Power and FuelCell Energy.
Since Monday, Plug Power has added about 45% to its share price, and FuelCell Energy has added almost 61%. Friday’s contract announcement is the first real benefit that FuelCell has seen, so investors are piling in.
FuelCell shares traded up about 5.7% in the first half-hour of trading, after opening up more than 7%. The current price is $3.14, in a 52-week range of $0.84 to $3.40.
Plug Power is also getting a nice coat-tail effect from FuelCell’s rise. Plug Power’s stock is up about 4.9%, at $6.67 in a 52-week range of $0.15 to $7.09. Payback time.
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