Ballard Power Systems is Down Nearly 20% Today, and Here’s Why

There are a lot of factors that play into a company’s success, or lack of, and today, we have firsthand witnessed the influence of external factors play into Ballard Power Systems (NASDAQ:BLDP) (TSE:BLDP) trading day.

Ballard Power Systems

Despite reporting a disappointing Q4 report on January 12, which included a narrower-than-expected loss, Ballard Power Systems has had a relatively positive month when it comes to announcements. For instance, on January 18, the company announced that Randy MacEwen, the company’s CEO, presented at a well-known seminar held in Beijing China on January 15th.

For those who don’t know, Ballard Power Systems is a clean energy growth company that focuses primarily on the development, design, and sale of fuel cell products.

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This week, however, things took a turn for the worst. To top it off, the reason the company is seeing red today doesn’t actually have anything to do with the company directly. If I were to take a wild guess, I would say Ballard Power Systems is probably pretty annoyed by that outside factor.

What Happened Today?

On Thursday, Spruce Point Capital Management released its extensive research report on the company. Essentially, the report was a business and financial review of Ballard Power Systems, and it wasn’t all positive. In fact, it was far from positive.

There was a lot mentioned in the report. It was both extensive and critical. However, I will say that it was needed, as investors need to be aware of what others on the market are saying. As I mentioned, outside factors play into how well a company is doing, and this is a prime example of that concept.

In the report, Spruce Point Capital stated that they believe that Ballard Power Systems is going to fail to meet the expectations of the market due to choosing the wrong Chinese partners. Additionally, Spruce Point believes the infrastructure and market for Ballard’s products have not developed like they were supposed too. The full report is 60-pages in length.

As a result, to which I am not surprised, Ballard Power Systems is trading down nearly 20%. Currently, the company is trading at $4.01, putting the BLDP stock down $0.68, or 14.50%.

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