http://www.bluechip-stocks.

com/blue-chip-stocks/penny-stock-expects-2012-revenue-toclimb-45

Penny Stock Expects 2012 Revenue to Climb 45%

Every investor knows its important to diversify. But, with close to 225 industries to choose from its difficult to know just how diversified you want to be. One industry that performed well in 2011, and is expected to experience solid growth over the next five years, is the industrial electric equipment industry. Globally, the electrical equipment sector is worth close to $202 billion, and primarily serves the mature markets of North America and Europe. With low-cost labor, production, and land, emerging countries such as India and China have provided an impetus for additional growth. In 2011, the industry grew almost 4.5%; during the preceding four years, it experienced annual growth of just one percent. Between 2011 and 2016, the industry is expected to climb almost five percent annually. (Source: Electrical Equipment Industry: Market Research Reports, Statistics and Analysis, ReportLinker, last accessed November 29, 2012.) Which companies will be best prepared to take advantage of this accelerated growth? Look for companies investing with strong fundamentals, a history of innovation, and a strong research and development program to stay ahead of competitors. Hydrogenics Corporation (NASDAQ/HYGS) is a penny stock that develops and manufactures hydrogen generation and fuel cell products, primarily in Europe, Africa, North America, South America, Oceania, Asia, and the Middle East. The penny stock is developing fuel cells that can deliver reliable, uninterrupted power in harsh weather conditions. Hydrogenics has plans for transportation and portable power applications through its development alliance with General Motors Company (which owns a stake in the penny stock). On November 9, 2012, Hydrogenics announced that third-quarter revenue increased 60.0% yearover-year to $7.9 million; net loss for the period increased to $3.07 million, or $0.40 per share. Year-to-date revenue was up 35.0% at $21.8 million; net loss came in at $9.4 million, or $1.40 per share. (Source: Hydrogenics Corporation press release, Hydrogenics Reports Third Quarter 2012 Results, November 9, 2012.) During the quarter, Hydrogenics secured its largest awarda multi-year order worth up to $90.0 million for hydrogen-based propulsion systems and related services. (Source: Hydrogenics Corporation press release, Hydrogenics Awarded Contract Valued at Over US$90 Million for Integrated Power Propulsion Systems for OEM, October 3, 2012.) Subsequent to the end of the third quarter, Hydrogenics announced it was awarded a contract to develop a 100kW HyPM-OH outdoor containerized hydrogen power system. (Source: Hydrogenics Corporation press release, Hydrogenics Awarded Contract to Deliver a 100kW HyPM-OH, November 1, 2012.)

Chart courtesy of www.StockCharts.com

Over the last 19 months, the penny stock has consistently traded in a well-established range, with support near $4.75 and resistance near $7.00. In early October, Hydrogenics share price spiked on news of a new $90.0-million contract. More significantly, on the heels of strong third-quarter results, and an improved outlook, the companys share price broke above its long-tested $7.00 resistance level on strong volume. Yesterday, penny stocks share price retraced below its $7.00 resistance level; perhaps on profit taking. Going forward, investors should watch for a sustained price below $7.00, or, if like before, it breaks above on heavy volume. During the third quarter, Hydrogenics booked $42.3 million of new orders. During the same period, the penny stocks order backlog rose nearly 150% year-over-year to $61.4 million. On the strength of this backlog, Hydrogenics projects 2012 year-over-year revenue growth of 45-55%. With strong fundamentals and a solid outlook, Hydrogenics has great momentum and both shortand long-term growth potential. Given current demand trends, the penny stock is well-positioned for improved financial performance heading into 2013.
Article Source:

http://www.pennystockdetectives.com/