Fuel Cell companies shares rally

FuelCell technology used at a Dominion Resources plant in Bridgeport, Conn. Source: Dominion Resources.

FuelCell Energy (NASDAQ: FCEL  ) ,   

FuelCell Energy jumped 20%, yet in some ways, that was actually disappointing to some shareholders in light of the action elsewhere in the space.

After having whipsawed in both directions lately, the CEO of Plug Power (NASDAQ: PLUG  ) said that the fuel-cell maker had gotten an order from a global automaker. Despite CEO Andy Marsh's failure to elaborate on the potential deal, traders chose to take the news as a sign of huge optimism, sending Plug shares up almost 50% on the day.

That optimism spread throughout the sector, as Ballard Power Systems (NASDAQ: BLDP  ) also posted a sharp gain of 32% on Plug's news.

At this point, speculative fervor has taken over the fuel-cell industry, making it difficult for long-term investors to get a solid read on the sector.

 When even hints of positive news can send stocks  soaring, the risk level in a particular stock is almost always higher than ordinary investors should take without being fully prepared to suffer potentially catastrophic losses.  







Link: http://www.fool.com/investing/general/2014/03/25/why-fuelcell-energy-atlantic-power-and-sonic-jumpe.aspx