First and most important, Happy Veteran’s Day and thank you to all of the Men and Women who have served this Country!
A quick update this Tuesday morning on stocks that we have our eye on. Without further ado…
Analysts are predicting a loss of .03 on revenue of $24.37M tomorrow. Since the company said they were well on track to meet their annual revenue number I’m guessing they will be very close if they don’t have a beat. People should keep in mind that the consensus revenue number is 5X last year’s actual number so it will hardly be a terrible disappointment if they do have a narrow miss! I think they will be in line with the (.03) EPS number at the very least but again we’ll know soon enough. The guidance from the company is obviously what is most important so we look forward to that more than anything. Regardless however, PLUG is a gem that will double and then triple in the next 6-18 months. Look at the previous articles I have written here and on Seeking Alpha that point to what I have been saying all along. Most of the current PLUG prognosticators are beginning to say the same thing. For the short term traders I think PLUG closes today over key resistance around $5.50. How much more is anyone’s guess. I think the news overall tomorrow will be favorable enough to create an upswing in the PPS but new contracts and new markets gained will be what sustains it. I look for major announcements from current customers regarding new orders and distribution center conversions before year end. This will be what blows away the analyst’s revenue projections for several years to come.
Fuel Cell Energy-FCEL:
Fuel Cell often gets lost in the clamor over Plug Power yet it is worth watching because analysts have them cutting their year ago EPS loss to (.02) from (.05) on a revenue number of $56.56M (next report due in mid-December). Growth has been steady at FCEL and 2015 guidance is for revenue growth of about 30% on $235M in sales. In my view this one is a sleeper which usually trades in line with PLUG but which deserves its own moment in the sun and I think will have it before the end of the year. Would not be surprised to see this up 60% by year end.
I remain nothing short of awestruck by how this company’s device, called the Hemopurifier, projects to benefit the medical community and patients the world over battling the world’s worst diseases. Granted, the company has some way to go in terms of receiving regulatory approvals (at least in the United States) but they have been given clearances to use the device experimentally and in compassionate use circumstances. We think the use of the Hemopurifier to treat the Ugandan Doctor Michael Mawanda in Frankfurt, who is now Ebola free after entering University Hospital with reported multiple organ failure, has created a lot of attention for the company which is long overdue. The next thing on tap for Aethlon is to present the data from their use of the Hemopurifier on Dr. Mawanda (what specifically was removed from his blood stream) at the American Society of Nephrology annual meeting taking place Friday at the Philadelphia Convention Center. That event is generally attended by 13,000 medical professionals according to the press release. This leads to our last point on this company today. On some level one would think that a game changing device like this, which may be used as a treatment regimen on dozens of the world’s toughest diseases, would propel the company and its stock like so many of these flash in the pan Ebola stocks, right? This is why we like this company on so many levels. They don’t promote just to promote yet they do seem to be doing a better job of letting people know about who they are and what they have. As more investors become aware of them we think it will be very hard to buy this name at anywhere near these levels.
As always, do your own due diligence and/or consult with a trusted financial advisor.