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Jul 25, 2018
Bloom Energy IPO: Time to Buy?

Bloom Energy IPO: Time to Buy?

Interested in the clean energy revolution? Bloom Energy is a company making waves on Wall Street, as it emerged as a rare clean-energy “unicorn.” Bloom's technology involves using solid oxide fuel cells that are used in stationary power-generation servers. The servers convert natural gas or biogas into electricity through an electrochemical reaction, which results in lower emissions.

On their website, Bloom Energy says that each on-site server, with a footprint of half the size of a shipping container, can provide around 250 kilowatts of power to its customers, or enough to power 160 average U.S. homes. That is more space-efficient than other forms of alternative energy, and unlike solar and wind power, the servers provide a constant source of electricity.

So, is the Bloom Energy stock a buy? The company appears on a solid growth trajectory, as it listed total revenue of $169 million, compared with $72 million in the year-ago period. First-quarter net losses attributable to shareholders reached $18 million, or $1.14 a share, compared with losses of $60 million, or $3.91 a share, in the first quarter of 2017.

Related Ticker: ALTEX

Contributor

Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.


Notable companies

The most notable companies in this group are Corning (NYSE:GLW), Bloom Energy Corp (NYSE:BE), ON Semiconductor Corp (NASDAQ:ON), Enphase Energy (NASDAQ:ENPH).

Industry description

The investment seeks long-term growth of capital. The fund normally invests at least 80% of its assets in alternative energy and alternative energy technology companies, both U.S. and international. It may purchase stocks of any capitalization, including, but not limited to, large-cap, mid-cap or small-cap stocks. The fund's international stock investments may include stocks of companies based in or doing substantial business in both developed markets and emerging markets. It may also from time to time, as part of its principal investment strategies, invest a substantial portion of its assets in cash or cash equivalents. The fund is non-diversified.

Market Cap

The average market capitalization across the Firsthand Alternative Energy MF is 156.66B. The market cap for tickers in the group ranges from 3.25B to 189.42B. ABBNY holds the highest valuation in this group at 189.42B. The lowest valued company is ACLS at 3.25B.

Volume

The average weekly volume growth across all stocks in the Firsthand Alternative Energy MF was -11%. For the same stocks of the MF, the average monthly volume growth was 17% and the average quarterly volume growth was -20%

Fundamental Analysis Ratings

The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows

Valuation Rating: 73
P/E Growth Rating: 55
Price Growth Rating: 57
SMR Rating: 63
Profit Risk Rating: 59
Seasonality Score: -21 (-100 ... +100)
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Bloom Energy IPO: Time to Buy?