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Why Traders Are Keeping a Close Eye on Ballard Power Systems Inc. (USA) (BLDP)

Ballard Power Systems Inc. (USA) (NASDAQ:BLDP) shares have rallied 9% after one of the company’s peers, Plug Power Inc (NASDAQ:PLUG), reached an agreement with, Inc. (NASDAQ:AMZN). Specifically, Amazon will use Plug Power fuel cells and hydrogen technology in its fulfillment network. The agreement for Plug could be worth $70 million in 2017.

Although Ballard Power Systems Inc. (USA) (NASDAQ:BLDP) didn’t win any contracts today, some traders feel the Amazon deal further validates fuel cells and certainly improves sentiment in the sector. Like Plug Power, Ballard Power also manufactures, designs, and services fuel cell products. Shares of the stock have rallied 42% year-to-date and 72% over the last 12 months before today’s news.

What Does The Smart Money Sentiment Say?

At Insider Monkey, we’ve developed an investment strategy that has delivered market-beating returns over the past 12 months. Our strategy identifies the 100 best-performing funds of the previous quarter from among the collection of 700+ successful funds that we track in our database, which we accomplish using our returns methodology. We then study the portfolios of those 100 funds using the latest 13F data to uncover the 30 most popular mid-cap stocks (market caps of between $1 billion and $10 billion) among them to hold until the next filing period. This strategy delivered 39.7% gains over the past 12 months and outperformed the 24.1% gain enjoyed by the S&P 500 ETFs. Our enhanced small-cap hedge fund strategy returned more than 45% over the last 12 months and outperformed SPY by more than 30 percentage points over the last 4.5 years (see details here).

Given the small size of the company, not many elite fund holders held Ballard Power Systems Inc. (USA) (NASDAQ:BLDP) at the end of the fourth quarter. One of the brand names, Jim Simons‘ Renaissance Technologies, reported a stake of 28,400 shares, but the fund decreased its share by 97% quarter-over-quarter.

The Bottom Line

Ballard Power Systems Inc. (USA) (NASDAQ:BLDP) shares have rallied almost 9% on the back of today’s Plug news. Although the good news occurred to a peer, the price action suggests that some traders believe Amazon’s deal with Plug improves sentiment for the name. For more reading, check out ‘11 Best Countries in Renewable Energy‘.


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