Danbury, Connecticut based global fuel cell company FuelCell Energy Inc (FCEL Stock Report) had been in trouble earlier this month. It happened after its stock tumbled by as much as 70% following uncertainty over the leadership of the company.
However, the company has managed to turn the tide by announcing a coup of sorts. Fuel Cell announced that it had inked a licensing deal with oil and natural gas behemoth Exxon Mobil (XOM Stock Report). After the news was announced, FCEL stock started soaring on Wednesday.
Penny Stock FCEL Stock Recovers 28%
At one point, shares of the penny stock rose by as much as 100% to hit an intraday high of $0.844. FCEL stock finally ended at $0.51, up by 27.50%. Penny stock news like this is certainly a big positive for a company like Fuel Cell. But it needs to be pointed out that this is not the first time that the two companies are collaborating. The two had partnered back in 2016 to improve the efficiency and affordability of large power plants.
How Should You Approach The Stock Now?
Despite the positive news, it’s necessary to keep in mind that Fuel Cell Energy had been in a bit of turmoil over the past few weeks. As mentioned earlier, the stock had dived by as much as 50% at one point this week. Thursday it appears that the stock has continued downward even after this positive news.
The turmoil at the company is related to the abrupt departure of its Chief Executive Officer Arthur Bottone. But at the same time, it can’t be overlooked that Fuel Cell is trying to engineer a major restructuring of the company. Investors aren’t particularly happy with a company in chaos and on Thursday, the sell-off commenced.
Bottone had been the company’s CEO for the past eight years but the company had largely struggled during more recent years. It has also emerged that Fuel Cell has hired the services of consultancy firm Huron Consultancy Services to help with the restricting process.