Bloom Energy stock is among today’s top performers. Why are BE shares rallying?
Bloom Energy Rejects Hunterbrook ReportBloom pushed back on the report’s claims about its financial results and accounting, calling them "false and misleading." The company said it stands behind the accuracy and integrity of its audited financial statements and financial reporting, and directed investors to its most recent Forms 10-K and 10-Q filed with the SEC.Bloom also disputed Hunterbrook’s conclusions about scandium oxide, a material used in Bloom’s fuel cells. The company said it has enough scandium oxide supply to meet current fuel cell demand and backlog, and said its supply is not dependent on China.Bloom added that it is not dependent on China to scale scandium oxide supply for future demand growth. The company said it has clear visibility into its supply chain to support production of 25GW of fuel cells per year and plans to continue expanding capacity.Hunterbrook Questions Bloom Energy’s Scandium Supply ChainHunterbrook Media’s report questioned CEO KR Sridhar’s prior statements that Bloom is not dependent on China for scandium. Hunterbrook Capital also disclosed that it holds a short position in Bloom Energy stock.A central part of the report is a supply-demand model that flags a potential deficit in fuel-cell-grade scandium oxide. Hunterbrook estimated Bloom alone would need roughly 220 tons to support 5 gigawatts of production expectations modeled by Wall Street, compared with about 240 tons of projected global supply.Bloom Energy Says It Will Correct The RecordBefore Thursday’s formal response, Bloom Energy told Benzinga on Wednesday that it was aware of the report "published by a media outlet affiliated with an investment firm that has disclosed it may hold positions designed to profit from a decline in Bloom’s stock," and said it planned to issue a response."We are reviewing the report and will correct the record. Bloom’s fuel cell platform is supported by a diversified, multi-country supply chain built over two decades, long-standing commercial relationships, and proprietary materials-recovery technology, as described in our public filings and our July 7 blog post on scandium oxide," a Bloom Energy spokesperson said.Critical Price Levels To Watch For BEFrom a trend perspective, the stock is still extended on the longer view after a 785.72% run over the past 12 months, and it’s trading 20.3% above the 100-day SMA ($222.79) and 59.7% above the 200-day SMA ($167.78). At the same time, it’s sitting 5.7% below the 20-day SMA ($284.22) and 4.9% below the 50-day SMA ($281.73), which frames the current bounce as a test of whether the pullback is ending or just pausing.
