Don’t put your finger in a socket with this energy stock

Something seems to be charging up at FuelCell Energy ($FCEL), and might even be reminiscent of a Doc Brown proclaiming 1.21 Gigawatts. Recent SEC filings show that $FCEL insider and chairman John Rolls bought $199k worth of stock on the open market, his largest purchase since 2005. Let’s break this down:

  • Largest purchase since 2005
  • 152,000 shares at a price of $1.31 each
  • Total holdings now come in at 317,270 shares (from SEC filings)

Why this matters

Okay, awesome. He had some money to burn. But why buy the equivalent of a used Lamborghini in stock? Insider transactions have to be reported, and share sales by company insiders are usually done on publicly available schedules, to avoid views of impropriety, and combat insider trading. Reasons for selling also vary. Daughter’s wedding? Sell some shares. Massive 6-month world tour vacation? Sell some shares. Financing research on the effect of peanut butter as it reacts to uncoated iron? Sell some shares. But buying? Something could be afoot that we aren’t sure of yet.

$FCEL shares have plunged 89% in the 5 years between his purchases (previous purchase was for $101,000 in stock), so this could be either a great move towards dollar cost averaging, or it could be the fact that analysts have been giving FuelCell decent price targets. A blended average right now sits north of $3 per share, well over a 100% upside to the purchase price, with some analysts giving the stock a $15 per share price target.

It’s <$2, you seriously expect it to hit $15?

If someone would have told me that McDonald’s ($MCD) would start having a 100% uptime on their ice cream machines, then we would be talking about fantasy land. But a $9-$15 price target for #FCEL doesn’t seem to far fetched. Here’s why.

Increased infrastructure spending, along with the companies focus on industrial and utility grade distributed power grid systems (read, not your average 9V battery) means that it will benefit from guaranteed money from municipalities, and its multi-country approach means it doesn’t rely on just the US, it works with countries around the world with ageing power grids. South Korea, England, Germany, Canada, and Spain all make the client list, and last time I checked, they were all developed economies with major needs.

How you make money

Buying and holding this stock would be an easy way to go here, with its low price, coupled with significant upside. It’s 14% above its 52-week low, but still 46% down from its 52-week high, giving it some major upside potential.

Want to play options? Assuming you’re incredibly bullish on the stock and think that the magic $15 a share price point is achievable, controlling 10 contracts at a $.05 per option price point, you risk $50 to control 1,000 shares of $FCEL. Getting in and buying 18 JAN 19 $10 CALL and it getting close to that price point has you enter in at $50, and assuming it hits $11 by 18 JAN 19, you stand to have these options worth $1 each, or $1,000 total, for a total profit of $950 (a 1,900% return on your money) (minus trading platform fees).

Even if the stock only reaches $4 by October 6th, exiting the option position would bring you a healthy 520% return with a net gain of $260 on your $50 entry point.

*** SPECIAL ALERT — June 27, 2020 — THREE of this Year’s Motley Fool Stock Picks Have Already Doubled! ****

We have been tracking ALL of the Motley Fool stock picks since January 2016. That’s 4+ years, 54 months and 108 stock picks. As of Friday, June 26th 3 of their 12 2020 stocks picks have already doubled (TSLA, ZM, SHOP). In addition, 4 of their 2019, 8 of their 2018, 7 of their 2016 and 10 of their 2016 picks have also doubled. Best of all, over these 54 months, the average stock pick is up 111%. That beats the SP500 by an average of 87%. And that’s even accounting for all of this COVID mess that has wreaked havoc on some stocks but presented opportunity for other stocks. THAT is how the Fool does so well!

  • Shopify (SHOP) – April 2, 2020 pick and it is already up 163%
  • Zoom Video (ZM) – March 19, 2020 pick and it is already up 107%
  • DexCom (DXCM) picked Feb 20, 2020 right before the market crashed and it is still up 26%
  • Tesla (TSLA) picked January 2, 2020 before the crash and it is up 123% compared to the SP500 -7% so it is ahead of the market by 130%
  • HubSpot (HUBS) picked December 5, 2019 and it is up 46%
  • Netflix (NFLX) picked November 21, 2019 and it is up 42%
  • Trade Desk (TTD) picked November 11, 2019 and up 111%
  • Zoom Video originally picked Oct 3 and it is up 234%
  • SolarEdge (SEDG) picked September 19, 2019 and it is up 44%

Now, no one can guarantee that their next picks will be as strong, but our 4.5 years of experience has been super-profitable. They also claim that since inception, their average pick is up 424% and now we believe them. You sure don’t want to risk missing out. Many analysts are saying that we have passed the bottom of this COVID crisis and stocks will recover quickly. So make sure you have the best stocks in your portfolio.

Normally the Fool service is priced at $199 per year but they are currently offering it for just $99/year if you click this link

CLICK HERE to get The Motley Fool’s Stock Picks for just $99 per Year! 



Robinhood was the first brokerage site to NOT charge commissions when they opened in 2013. They just past 10,000,000 accounts and to celebrate they are offering up to $1,000 in free stock when you open a new account.

Here’s the details: You must click on a special promo link to open your new Robinhood account. Then when you fund your account with at least $10, you will receive one stock valued between $5 and $500. Then, you will get a link to share with your friends. Every time one of your friends opens an account, you will receive another free stock valued between $5 and $500. Click here to learn more about this Special Robinhood offer.

Claim your free stock NOW

(before it’s too late)

Leave a Reply

Your email address will not be published. Required fields are marked *