Ballard Power's stock rockets after upbeat outlook, dispute of short-seller's report
Shares of Ballard Power Systems Inc. shot up 19% in morning trade Monday, after the fuel cell company provided an upbeat outlook for 2017 results as it disputed a report by a short seller that led to a sharp selloff last week. Ballard said it expects to report "record annual revenue" for 2017. "We believe these results fully validate our long-held belief that Ballard is uniquely positioned to capitalize on the worldwide trend toward zero-emission transportation," Chief Executive Randy MacEwen said. The stock had tumbled 21% the past two sessions to close Friday at a five-month low, after short-seller Spruce Point Capital Management said the company's growth ambitions in China were expected to fail from weak partnerships, and reminded investors that a previous China deal resulted in a contract breach and lowered guidance in 2015. Spruce Point said the stock should trade in a range of $1.15 to $2.50 over the long term. Ballard said Monday that some of the statements that the short-seller based its arguments on are "demonstrably false," while others amounted to "unduly negative speculation" about "well-disclosed" risks. The stock has run up 87% over the past 12 months, while the S&P 500 has gained 25%.
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