Fuel Cell Stocks: Waiting For a Government Plug - HOKU, HYGS, PLUG, BLDP, ENA, FCEL

Yesterday, I noted how the fuel cell industry reminds me of the solar industry given how companies like Ballard Power Systems (NASDAQ: BLDP), Enova Systems (AMEX: ENA) and FuelCell Energy, Inc. (NASDAQ: FCEL) for the most part, need government subsidies like H.R. 1659 Fuel Cell Industrial Jobs Act of 2011 to stay afloat. Moreover, no amount of government subsidies will keep big players like General Electric (NYSE: GE) and United Technologies (NYSE: UTX), who are entering the fuel cell market, at bay.

A quick review of three more fuel cell stocks (HOKU, HYGS and PLUG) also does not reveal a particularly exciting picture for renewable energy investors:

• Hoku Corporation (NASDAQ: HOKU) is a Hawaii based diversified clean energy technologies company that has three business units: Hoku Materials, Hoku Solar and Hoku Fuel Cells. Specifically, Hoku operates its fuel cell business as Hoku Fuel Cells where it designs and manufactures membranes and membrane electrode assemblies (MEAs) for proton exchange membrane (PEM) and fuel cells. Hoku has a profit margin of -236.50% and an operating margin of -245.28%. In other words, its not a particularly profitable company. HOKU recently closed at $1.97 a share and has a 52 week trading range of $1.75 to $3.78 a share.
• Hydrogenics Corporation (NASDAQ: HYGS) is a Canadian designer, developer and manufacturer of hydrogen generation products that include fuel cell products. For 4Q2010, Hydrogenics Corporation had revenue rise 38% to $5.8 million but still posted a net loss of $1.9 million, or 34 cents a share. The year before, Hydrogenics Corporation posted a profit of of $6.1 million, or $1.64 per share – thanks in large part to a gain of $10.4 million related to a transaction with the Algonquin Power Income Fund. Hydrogenics Corporation recently closed at $5.47 and has a 52 week trading range of $3 to $8.25 a share.
• Plug Power (NASDAQ: PLUG) is a Latham New York based alternative energy company that designs, develops and manufactures fuel cell systems for both the industrial off-road markets and the stationary power markets. For 1Q2011, total revenue was $6 million while the company had a net lost of $7.2 million compared to a net loss of $10.6 million a year earlier. Hence, Plug Power is working with Congressman Paul Tonko and Congressman Chris Gibson to get H.R. 1659 Fuel Cell Industrial Jobs Act of 2011 through Congress. Plug Power recently closed at $0.45 a share and has a 52 week trading range of $0.36 to $1.07 a share. Plug Power has also recently announced a 1-for-10 reverse stock split.

The bottom line: For fuel cell stocks HOKU, HYGS and PLUG (just like BLDP, ENA and FCEL), it will probably take more than a government plug to wet the appetites of renewable energy investors.