This post was just published on ZYX Buy Change Alert.
Ballard Power Systems
Conservative investors should stay away from these trades. BLDP is a fuel cell company. This is a short-term trade suitable only for very aggressive investors.
As of this writing the stock is trading at $4.50. On fundamentals, this stock should be much lower however it is running up in sympathy with PLUG. PLUG is the most overhyped fuel cell stock. The rational for buying this stock is because it is in the early stages of going through a short squeeze. Consider limiting to 20% of the full core position size in the zone of $4.20 to $4.60. Keep stops tight right under $4.00 in the zone of $3.80 to $3.93.
A short squeeze can carry this stock easily to $7 to $8.
Those who are more aggressive can also consider a small position on PLUG in the zone of $6.20 to $6.50 with a tight stop right under $6. A short squeeze on PLUG can easily run over $10.
Full disclosure: In ZYX Short Sell Change Alert we were short these stocks and have taken profits this afternoon. If these stocks run up near the targets mentioned in this post, we may recommend taking profits on the longs and short selling them again.
