Ballard Power Systems (BLDP)


"Ballard Power Systems is recognized as the world leader in the design, development and manufacture of zero-emission proton exchange membrane fuel cells. Ballard is also commercializing electric drives for fuel cell and other electric vehicles, power conversion products, and is a Tier 1 automotive supplier of friction materials for power train components. Ballard's proprietary technology is enabling automobile, bus, electrical equipment, portable power and stationary product manufacturers to develop environmentally clean products for sale. Ballard is partnering with strong, world-leading companies, including DaimlerChrysler, Ford and EBARA, to commercialize Ballard® fuel cells. Ballard has supplied fuel cells to Honda, Mitsubishi, Nissan, Volkswagen, Yamaha and Cinergy, among others." (company website)

BLDP 3-month stock chart

Sell short

If you can't beat 'em, join 'em. I lost money on Ballard in December, trying to catch a potential uptrend. Up has become down. So, I'll try again, this time going short.

  • Price momentum (PPO) — slowing for past month
  • Trend (ADX) — weakening
  • Money flow (CMF) — strong outflow
  • Relative strength (RSI) — weakening generally, although ticking up in last week
  • Volume — falling slightly, and recent bigger-volume days are all down days

Based on technical analysis, MarketEdge calls BLDP a "short candidate" in a "strong downward trend."

A psychological risk, of course, is that the contrarians may decide BLDP is cheap and start buying in. Accordingly, I've set my stop-loss activation price somewhat lower than I normally would, at 4%.

Buy to cover

gain Bottom line

I decided to cover Ballard today. It has been bouncing along sideways in narrowing Bollinger bands for about a month, often a precursor to a move one way or another. During that time it has stubbornly resisted going below about $5.50, so I am inclined to think a break might be to the upside. Rather than risk losing all my gains, I'll bank very modest ones.