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Hydrogenics Corporation HYGS

Hydrogenics Corp and its subsidiaries designs, develops and manufactures hydrogen generation products using water electrolysis technology, and fuel cell products which convert hydrogen into electricity using proton exchange membrane technology. The company has manufacturing plants in Canada and Belgium, satellite facilities in Germany and the United States. Its products are sold throughout the world.


NDAQ:HYGS - Post by User

Bullboard Posts
Post by clk_vestedon Jan 21, 2010 10:16am
547 Views
Post# 16703385

Word of Caution

Word of CautionThe day you see positive operating margin is the first day you should consider sinking any money into this stock, unless you like to trade on guesses about 10 cent price fluctuations.

Their technology is decent, but historically, this has been a badly (and expensively) managed company. Historically, big orders (with very few exceptions) have been executed at operating losses. So they lose more money when they have an order than they lose when they don't!

That said, this last order is an interesting one because it is essentially an engineering project, and not an attempt at volume sales. HYG is fairly good at engineering and one-off projects, and very bad at bringing products to market.

So if you want to gamble that they are going to win on this one, go ahead, but I think if you wait to see whether they turn a profit or not, the share price won't have moved much -- 10 years of consistent losses tends to make the market wary, IMO.

I have no position in this stock. I'm not typically a basher. This is probably the last I will post on this subject.
Bullboard Posts
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