Recent

% | $
Quotes you view appear here for quick access.

Hydrogenics Corporation Message Board

SortNewest  |  Oldest  |  Highest Rated Expand all messages
  • Nothing done all investors will loose their holding when toxic business behavior comes back

    Sentiment: Strong Sell

  • EnergyWendy fell in love with Powerwall

  • Reply to

    JWolf: Re Hydrogenics Hydrogen Hawaii,,,

    by theinternetranger May 22, 2015 11:42 AM

    T.I.Ranger,

    I keep telling myself it's just a matter of time before most of these proven and successful Hydrogenics Fuel Cell projects for the entire World will transition to full commercialization very soon . Let's just hope 2015 will be the year .

    Sentiment: Buy

  • Elon Musk, CEO of Tesla, with a Powerpack unit the background unveils suit of batteries for homes, businesses, and utilities at Tesla Design Studio April
    Elon Musk, CEO of Tesla, with a Powerpack unit the background unveils suit of batteries for homes, businesses, and utilities at Tesla Design Studio April 30, 2015 in Hawthorne, California. Musk unveiled the home battery named Powerwall with a selling price of $3500 for 10kWh and $3000 for 7kWh and very large utility pack called Powerpack.

  • I remembered the HYGS dock-side 'shore-power' application but not the 'containerized ship' one, so I did a little reviwing. It seems like there are really 3 maritime applications/uses:
    1. Stationary dockside
    2. Island container ship
    3. Barging

    It'd be great to sea a humongous cruise ship pull up to a dock for H2 'shore power', or even a Navy warship!

    Enjoy the Rid...ah..err the Cruise

  • Reply to

    someone explain

    by drmcsr May 22, 2015 9:53 AM

    I do agree with you though...seems they are in much better position then they ever have been and same thing for non passenger car h2o applications. This isn't a stock bought for earnings, it has no dividend, this is about owning a component of the future of energy on this planet!

    Sentiment: Strong Buy

  • Reply to

    someone explain

    by drmcsr May 22, 2015 9:53 AM

    According to Zacks you shouldn't be surprised...it's due to downward earning revisions.

    Sentiment: Buy

  • Reply to

    someone explain

    by drmcsr May 22, 2015 9:53 AM

    Illegal naked shorting is the only thing that could be driving the price down like this.

  • Everything about this company is better than it was a year ago, except for the share price. Only some supply delays. Is there naked shorting going on here?

  • This is it!

    Sentiment: Strong Sell

  • No idea?

    Sentiment: Strong Sell

  • HYGS 1 week decline 50%

    Sentiment: Strong Sell

  • HYGS reveunes of 2015 will be below 28 million each upcoming quarter around 7 million.
    Hydrogenics will be quick ripped on the ground

    Sentiment: Strong Sell

  • The Street Sweeper, TheStreetSweeper (594 clicks)
    Short only
    Profile| Send Message| Follow (840 followers)
    | Performance
    Hydrogenics: Margin Drop, Cash-Poor, Insider Sell-Out And Enough Malfunctions To Make You Swoon
    Must Read | Mar. 18, 2015 8:46 PM ET | 17 comments | About: Hydrogenics Corporation (HYGS)

    Disclosure: The author is short HYGS. (More...)
    Summary

    Burning cash. The company's shelf prospectus allows up to $100 million worth of banknotes, common stock, etc. We expect an equity raise.
    A big customer-shareholder sells off Hydrogenics stock.
    Gross margins drop heavily.
    Amid 30-50 percent growth expectations, a decline noted in backlog - sometimes considered a measure of future revenues, though subject to customer cancellation.
    Hydrogenics execs back off from 30 percent growth projection - a figure that may or may not materialize, given backlog numbers.

    By Sonya Colberg, TheStreetSweeper Senior Investigative Reporter

    Hydrogenics Corp. (NASDAQ:HYGS) suffers an unfortunate link to Janet Jackson - sort of a "wardrobe malfunction."

    The fuel cell company is now dealing with a "parts malfunction" in which it revealed that two multi-million dollar shipments were delayed because Hydrogenics' supplier had built defective equipment. This mistake by the fuel cell technology company electrified listeners almost as much as the singer's caper.

    Oddly, much as that other malfunction ignited fleeting promotion for a fading star, Hydrogenics' malfunction may have sparked an unexpected boost for the company, too. We'll explain that below.

    We'll also look more closely at various big issues threatening the company's business:

    The reputation-damaging parts malfunction.
    A big shareholder sells off stock.
    Gross margin drops heavily.
    Backlog drops - indicating shrinkage of future potential sales - even as some analysts expect 50 percent year-over-year growth.
    Hydrogenics execs back off from 30 percent growth projection - a figure also unlikely to materialize, given backlog numbers.
    Burning cash. The company's shelf prospectus allows up to $100 million worth of banknotes, common stock, etc. We expect an equity raise.

    Hydrogenics did not respond to our requests for an interview for this article.

    With a tip of the hat to some old Janet Jackson tunes, we'll review Hydrogenics' positives, as well as the negatives that we believe make this stock scarier than any future outrageous attempts by Ms. Jackson to remain relevant.
    "Whoops Now," Here's The Bull Case

    Canada-based Hydrogenics provides hydrogen fuel cells for stationary and mobile uses, and hydrogen-generating products for industrial applications as well as for energy storage.

    The bull argument includes a belief that Hydrogenics can sell more products as California, Canada, the European Union and Germany develop policies to encourage alternative energy uses.

    Additionally, backlogged inventory still appears significant, and bulls add that this suggests the pipeline will lead to a positive adjusted EBITDA for 2015.

    The maturing and expanding order pipeline should drive more news flow, which analysts believe would be a strong positive catalyst pointing to growth and stability - assuming hydrogen fuel cells become a more common power source.
    "Can't B Good," Or Why Did Hydrogenics Have To Blow This Delivery?

    The stock has zig-zagged over the past year like a pop musician drunk on fuel cell bubbly. It swooned again in December when the company updated investors with the news that delayed shipments would squash 2014 targets.

    Then came the day for Hydrogenics to sing out those sour notes in the earnings call. In light of the delays, EBITDA remained negative and the targeted $50 million revenue turned out to be just $45.5 million.

    "Let me assure our investors that it was very unusual for these particular parts in question to be defective," CEO Daryl Wilson said early in the call on March 4.

    Those parts were critical. One shipment was destined as a second energy storage system for E.ON SE, an important German energy and gas customer.

    Mr. Wilson said the supplier had simply provided inferior parts for this "OnSite Generation" project and another project that he didn't name.

    E.ON's Falkenhagen project currently uses Hydrogenics' 2 megawatt electrolyzer. The system allows the combination of water with excess energy from wind turbines to create hydrogen that is stored and moved into the natural gas pipeline.

    A big portion of a $5 million sale and Hydrogenics' reputation hinged on delivering a second electrolyzer to E.ON. This was to be installed in the Hamburg project that the E.ON folks enthusiastically referred to as "the first prototype operating in the 1MW range."

    But Hydrogenics executives indicated the company will recover from this blunder and get paid this first quarter.

    We hope so. But we can't overemphasize the significance of messing up these OnSite Generation orders.

    Consider this customer concentration issue: E.ON and the other unnamed important customer are among just four big customers that delivered 39 percent of Hydrogenics' sales last year.
    "You Want This," or Darn Right We Want Good Gross Margins. Ahhh, Those Twisty Low Margins.

    The parts problems went hand-in-hand with another blow-up mentioned gently by analysts in the earnings call. Gross margins fell both sequentially and compared to the same quarter in the prior year. In fact, the margins are by far the lowest since the first quarter of 2013, as shown below.

    (click to enlarge)

    Yet, this disappointment apparently handed Hydrogenics the oddest twist.

    OnSite Generation sales are lower-margin, at under 15 percent (10 percent below the other division, Power Systems).

    An analyst who requested anonymity pointed out that if the shipments had actually occurred, more low-margin product revenues would have diluted the higher-margin revenues.

    "If those sales had been in there," the analyst said, "Hydrogenics might not have been profitable because of those crummy gross margins."

    And though the company reported its first quarterly profit of $612,000 on revenue of $15.7 million, that doesn't dampen our concerns about the low margins that the CFO referred to as "a new normal."
    Even Backlog "Doesn't Really Matter;" Next Rev Hit Unlikely

    Backlog, which is sometimes crafted in the fuel cell business as a measure of future revenues (though it is subject to customer cancellation), decreased by 7 percent to $62.2 million:

    But let's say Hydrogenics converted most backlog to revenue, as executives said most inventory will be delivered in 12 months. And let's add the roughly $5 million revenue from the delayed shipments hoped to be realized in the first quarter.

    Though 23 is the highest percentage converted from backlog in any quarter so far this year, let's go ahead and assume Hydrogenics converts a crazy-optimistic 95 percent of that backlog by year end.

    2015 Revenue Estimate/Bloomberg


    $ 68.5 million

    95% Backlog Converted


    $ 59 million

    Q4 Rev. To Be Recognized in Q1 2015


    + $ 5 million

    Estimate Miss


    - $ 9 million

    Our calculations suggest that unless Hydrogenics can charge substantially more for each system sold, it's impossible to hit those analyst estimates.

    "There's no way Hydrogenics can hit 2015 revenue," an analyst told TheStreetSweeper.

    In fact, in the earnings call, executives seemed to have their own doubts about lofty revenue guesses.

    They refused to be pinned down on speculating (as they did in Q3 and earlier) that Hydrogenics could even hit 30 percent additional revenue - which would be $59 million - and our example above shows even that much would require 95 percent of backlog to be converted to revenue.
    Major Shareholder Sings Along With Janet, "You Want This?" And Just Keeps Selling Shares. More To Come.

    Customer and major shareholder CommScope (NASDAQ:COMM) sold HYGS shares last week. And the week before... and twice the week before... and so on.

    Just since last May, it has sold nearly 1 million shares, or nearly half its entire stake.

    CommScope bought about 2.2 million shares in 2011, and records show it now holds only 1.3 million shares after kicking off its selling spree last May.

    Mr. Wilson explained during the earnings call that CommScope's CFO has just decided to monetize the investment:

    Daryl Wilson, CEO: "We believe there will be demand in the stock to buy out that relatively slow dribble out that's coming from CommScope. And again, they are limited by regulations on trading those shares in each three month period, no greater than the weekly average trading volume. So it's a pretty severe limitation on their ability to sell."

    CommScope has a unique perspective on Hydrogenics business, because it is not just an investor, but also a customer.

    If you're wondering if you should be worried, you're not alone. After confirming that CommScope owns about 14 percent of the company, Tendercapital analyst Marco Sirugo raised that very question.

    Marco Sirugo: "Okay. So should I not be worried by this data?"

    Bob Motz, CFO: "No, I don't think at all. It's not germane to our business directly, because as Daryl has indicated, it really doesn't affect in my view the value proposition for the company."

    We're still worried. And curious. If CommScope actually believed in Hydrogenics technology, why sell now?

    Judging by the current trend, investors will likely have a few white-knuckle weeks to watch the remaining 1.4 million shares hit the market.

    The last time 1.5 million shares of Hydrogenics hit the market, shareholders probably weren't in the mood for humming along with Ms. Jackson's song, "The Best Things in Life Are Free."

    In fact, Hydrogenics announced a public offering on May 13, 2014 of 1 million shares in the treasury - plus 500,000 shares owned by CommScope.

    In reaction, the stock took a freefall to a new normal that persists today. The price fluttered 30 percent virtually overnight from ~$20 to ~$14.

    Here's that Hydrogenics stock chart:

    (click to enlarge)
    "Hold Back The Tears." That Cash Burn's Hurting

    We, too, could barely hold back the tears when we spotted Hydrogenics' available cash in 2014 and noted it dropped below 2013. Yet, its cash burn grew.

    Cash burn leaped 62 percent to about $3.9 million per quarter. At the same time, the available cash slumped to $6.6 million.

    With little more than one quarter's worth of cash available - even less if the company hopes to sell improved products - it makes sense that it would put its stock on the auction block this year.

    So we're expecting a cash raise in the second quarter - or the third quarter, at the latest.

    After all, the company's shelf prospectus allows up to $100 million worth of banknotes, common stock, etc. So why not an equity raise soon?

    Sentiment: Strong Sell

  • Delisting is a near-term matter get rid of this kind of company like Hydrogenics

    Sentiment: Strong Sell

  • Kick daryl wilson out of his #$%$ office he failed in all ways.
    No announcement means hydrogenics will file destructive news
    Where the #$%$ pumpers I was bearish since the mid 30 bucks and now....
    Here we go single digit and pennies will come too.
    My guess everything was fake at hydrogenics if you have listened to the last year CC it was full of nonsense.
    Keep in mind commscope wasn't a client only a investor and they sold because the hydrogen fuel cell cabinet isn't competitive.
    Commscope took hydrogenics off the list.
    Ask commscope if they are able to sell a hydrogen fuel cell cabinet the answer will be..NO!

    Sentiment: Strong Sell

  • He talked about phantom program with an unknown client because of the spooky competition.
    and Daryl Wilson said he had strong cards but the CEO &President of Hydrogenics was lying.
    Now Daryl wilson will leave the station with million of dollars in his pocket and once again a broken company hydrogenics and all employees are kicked out or laid off.

    Sentiment: Strong Sell

  • Reply to

    Expect a big order anouncement soon per CC

    by milkweedthug May 21, 2015 9:59 AM

    Toyota isn't hydrogenics partner nor Toyota bought fuel cell units from hydrogenics.
    Keep in Mind hydrogenics hasn't sold any fuel cells to any automotive OEM.
    If so hydrogenics would be trading at 3000 bucks a share.

    Sentiment: Strong Sell

  • Convervative means normally bullish outlook but in case of Hydrogenics it means bankrupt!

    Sentiment: Strong Sell

Must Watch
HYGS
9.19-0.07(-0.76%)May 22 3:59 PMEDT