Ballard Power Systems (BLDP.TO)

A very speculative stock in the fuel-cell business. Earlier in the year, a lot of companies in this space had a huge run up in share prices. He tries to avoid these speculative stocks. For the average investor, it is extremely difficult unless you have a strong belief in theme or have done a lot of work in the area. It is difficult to value these companies.

This used to be on his watch list. It’s a question of having revenues which they now have. This is not on his Watch List any more because it has moved up quite handily.

Extremely volatile. From a valuation aspect, he can’t really comment on it because they don’t really trade on valuation. At the end of the day they are going to benefit from the ability to use and integrate these fuel cells. The problem is trying to tell what the market is really going to look like 5 years from now. Wouldn’t chase it. Would let it normalize and see what the real business plans show and what cash flows are going to look like.

This company has participated in this unbelievable “hockey stick” run that we’ve seen in a lot of the alternative power plays. Has languished for years and years and has finally started to show some life. There is a little bit of expectational hope that has been built into the battery-powered business, kind of stemming off what Tesla (TSLA-Q) has done. He is a little bit dubious. It has taken and years and years to get their core products to somewhere where customers will actually buy.

Long long base, then huge break out. The type of stock he looks at. Some profit taking happend today. (From $9 to $5, up from below $5 earlier in the week).