Among the most popular names on Wall Street in the hydrogen fuel cell market is Fuel cell energy (NASDAQ:FCEL). Over the years, many traders tolerant of large price movements have tried their luck with FCEL stocks.
Yet FuelCell’s bright future as a business doesn’t just depend on luck. Ultimately, it is the national and global shift towards sustainable practices and carbon neutrality.
As governments adopt pro-clean energy policies, holders of FCEL shares could benefit from significant returns. This is a long-term perspective, however, and there will likely be some volatility along the way.
Still, it’s much easier to envision the potential benefits, as the United States has recently taken a big step forward in implementing an Earth-friendly policy. In addition, FuelCell’s link with an energy market giant has just grown stronger and will last longer.
FCEL share overview
Without a doubt, FCEL stock traders would like to step back so that they can review the stock’s movement in early 2021 from $ 10 to almost $ 30.
It was a good time, but now they’re in the rearview mirror. Savvy investors face today’s price movement, however difficult it may be.
There appears to be support at the $ 6 level as buyers have maintained this level on several occasions. However, you don’t have to wait for FCEL’s stock to drop to $ 6 as it might not happen anytime soon, if at all.
In reality, it’s all about choosing your purchase price and sticking to it. If your time horizon is long enough, then $ 8 or $ 9 might actually be a reasonable purchase price. And if you’re not used to daily price movements of 5% or more, you’d better find a seat belt and strap that is tight.
Whatever you choose to do, please maintain a very moderate position size. The open secret to surviving high volatility investments is to own only a few stocks. During this time, you can keep plenty of dry powder ready for future opportunities.
A historic occasion
2021 could be the most important year in recent memory in terms of progress in putting in place sustainable development legislation in the United States. In Connecticut, for example, FuelCell applauded when Governor Ned Lamont signed Connecticut House Bill 6524.
The full title of this bill is “An Act respecting the solicitation of new projects for the production of electricity by fuel cell”. Now, this is clearly a victory for FuelCell Energy and more broadly environmental, social and governance (ESG) actions.
Similarly, Governor Gavin Newsom recently signed California Senate Bill 155. This bill includes a two-year extension of the fuel cell net energy measurement program, also known as Fuel Cell NEM.
Yet these events are pale in comparison to the long-awaited $ 1 trillion infrastructure bill that US President Joseph Biden has just passed.
In addition to many other elements, the bill includes:
$ 73 billion for the power grid to include upgrades to U.S. power systems, which will help the grid carry renewables, among others
$ 47 billion for climate resilience – not necessarily directly related to fuel cells, but still relevant to the clean energy movement
$ 21 billion for environmental projects, mainly related to pollution / waste disposal
$ 7.5 billion for electric vehicles – this is where the rubber meets the road. This allocation includes increasing the availability of charging stations across the United States, as an extension of Biden’s commitment to build 500,000 stations nationwide.
Capture the moment
In case all this clean energy legislation isn’t enough to convince you, there is also some positive news directly related to FuelCell Energy. In particular, the company is extending its co-development agreement with Exxon Mobil (NYSE:XOM) for carbon capture technology.
With this six-month extension, FuelCell and ExxonMobil continue to work closely together to promote carbonate fuel cell innovation. The stated objective of this technology will be to capture carbon dioxide from industrial facilities and power generation. Thus, the agreement between the two companies should continue until April 30, 2022.
FuelCell Energy President and CEO Jason Few hailed the opportunity to develop technology “that aims to address one of today’s greatest environmental challenges.”
This challenge relates to carbon dioxide emissions from power generation and industrial exhaust streams. With Exxon Mobil as a partner, FuelCell Energy is ready to innovate a unique carbon capture solution and make the world a cleaner place.
Take-out meals for FCEL Stock
FCEL shares are far from their record price. This, however, is not necessarily a bad thing.
Recently passed U.S. clean energy legislation could support FuelCell’s stock price in the months and years to come. In addition, an extended partnership with Exxon Mobil sets FuelCell apart from its competitors.
So, do not hesitate to set your purchase price for the FCEL share. Then wait patiently. If your outlook is positive for the company and its innovative technology, then a long-term position could be of great benefit to you with FuelCell Energy.
As of the publication date, neither Louis Navellier nor the InvestorPlace research staff member primarily responsible for this article held (directly or indirectly) positions in the securities mentioned in this article.
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