How hard has Hydrogenics Corporation (NASDAQ: HYGS) stock fell?

Hydrogenics Corporation (NASDAQ: HYGS) , a manufacturer of hydrogen generation and fuel cell products, announced on July 7, 2008, that the company had signed a contract with Concurrent Technologies Corporation for the supply of 20 Fuel Cell Power Packs. The technology will be used as a replacement for ordinary acid batteries in lift trucks operated by Concurrent. Hdrogenics estimates they will be able to fulfill this order by the end of 2008.

Hydrogenics solution for the replacement of ordinary batteries fits perfectly into the standard battery compartment. The unit will be equipped with the company's HyPM HD Fuel Cell Power Module technology, which provides for the possibility of handling energy peaks and capturing energy through regenerative braking.

The President and CEO of Hydorgenics, Daryl Wilson , commented on the new order: "Hydrogenics has focused on material handling equipment, including lift trucks, as an important commercial mobility market for fuel cells. We have developed our HyPX Fuel Cell Power Pack as a leading-edge replacement product for lead-acid battery powered equipment, with particular focus on Class 1 forklifts. We are very pleased to work with CTC as an integrator with Crown Equipment Corporation to put these products into service at the DoD as they demonstrate once again their leadership in embracing new technologies."

The stock however fell on July 8, 2008, as a reaction to the announcement. Such a reaction was to be expected, as it is doubtful that one not very significant order will have a major impact on the company's financial condtion. And the current financials look nasty; it's a good thing the company still has enough cash to carry out operations for at least another year.

There is also a problem with the share price. The company had already lost and only recently regained compliance with Nasdaq for their stock price being less than $1. Although the stock rallied back then, it seems to have already topped out, meaning the company's little problem might reoccur, or even lead to a stock split.

For conclusion - the stock should only be tried to be traded short. Even with the promising technology, fundamentals are currently dragging the company down, and it will take time to change.