Hall of Shame

Industrials

Ballard Power Systems Inc. (BLDP US)

Year: 2018

Ballard Power Systems Inc is a Canadian clean energy growth company. The company is engaged in proton exchange membrane fuel cell development and commercialization. The company's main business is the design, development, manufacture, sale, and service of fuel cell products for a variety of applications, focusing on motive power (material handling and buses) and stationary power (back-up power, supplemental power, and distributed generation). A fuel cell is an environmentally clean electrochemical device that combines hydrogen fuel with oxygen (from the air) to produce electricity. Geographically, it has a presence in China, Europe, North America and other of which Europe generates maximum revenue.

Ballard has been public since 1995 with countless failures to deliver profits. Investors should no longer be paying for potential, but rather tangible earnings and a sustainable business model.  The company has a history of chosing weak partners in China.

In 2014, Ballard teminates its license agreements with China's Azure Hydrogenm which was to be it's introduction to the Chinese market. 

In Jan 2018, a report entitled "Fuel Sell Opportunity" highlights the findings of Spruce Point's on the ground due diligence on the nascent state of the China hydrogen fuel cell industry, and the significant challenges faced by Ballard's China partners, Broad Ocean and Synergy.   The report discusses the potentially significant risk to Ballard's backlog and suggests that the stock has 35%-70% downside.


Alt Energy: Ballard Power Ends Pact with Azure,  6 Jan 2015
Financial Post: Ballard Power Systems Inc shares dive after two contracts terminated in China, 2 Jan 2015
Spruce Point Capital Management: Investment Research Report,  25 Jan 2018
Ballard Power: Fiancial Report YE 2015
Ballard Power: Fiancial Report YE 2016
Ballard Power: Fiancial Report YE 2017

 


Back