Still a bright future but FCEL just backed themselves into a corner in the short term
I am also giving FCEL all of 2013 as they have a lot of solid long term contracts and several new (and big) contracts. However, they totally backed themselves into a corner with this EPS where as next cc will be all or nothing for a lot of investors. A lot of you have to understand that when any company starts treading in new territory there are unexpected things that happen. FCEL is making more than it ever has. That means that there will be unforeseen miscalculations. Just imagine the 50 employees they just hired. It only takes one idiot in that bunch to mess up a shipment. FCEL has had a really great track record in regards to product quality (which they deserve kudos for) so this will be forgiven by their customers. Notice they explicitly brought up that Dominions plants are still on time. However, investors are a different story and if they don't improve #'s dramatically next quarter than there will be a lot of confidence lost. With that said, I wouldn't sell because leave it to these guys to have a EPS like this then announce a huge contract next week which will come at some point.
I really don't see this to drop. Things look fine especially for the cost of ramping up for the next qtr., 2+ mil in warranty work (big mistake but not end all) everything else is up. I'm wondering about the addl selling cost pad pad. I'm going to go out on a limb and add to my position big if it drops below .95.
I like this company, and have been investing in it for many years... I am still in the hole! For the short term, I changing investment strategies from LT to ST cash flow. There is money to be made on this company, but straight LT strategies just don't work yet...