Shares of fuel cell maker Ballard roar back after response to short seller report
by The Canadian Press
A Spruce Point Capital report slapped a "strong sell" rating on the Canadian company, which offered a quick rebuttal
The company has partnered with a number of Chinese auto manufacturers in recent years. PHOTO: Ballard
VANCOUVER—Shares of Ballard Power Systems Inc. shot up in trading Jan. 29 after the company fought back against a short seller’s report that questions the company’s prospects.
Ballard shares closed at $4.96 Monday, up more than a dollar from their $3.71 finish on Friday, or nearly 34 per cent.
The fuel cell company says it expects to report record annual revenue of approximately $120 million, based on preliminary unaudited financial statements for its 2017 financial year.
Last week, Spruce Point Capital released a report on the fuel cell manufacturer with a “strong sell” recommendation.
That was followed by two days of declines for Ballard shares, which dropped 13.4 per cent on Thursday and 8.6 per cent on Friday.
The Vancouver-based company says the short-seller’s report “contained a number of unsubstantiated forward-looking statements, assumptions and opinions, as well as other statements and assertions that are simply false.”
A conference call to review its fourth quarter and full-year results is set for March 1.
