Fuel Cell Companies

Post Reply
dan_s
Posts: 34471
Joined: Fri Apr 23, 2010 8:22 am

Fuel Cell Companies

Post by dan_s »

I certainly no expert on fuel cell technology but it definitely has a future. I hope other E-P Group members will share some ideas with us in this space.
Dan S

One Wicked Cheap Fuel Cell Stock
By Christian A. DeHaemer | Friday, April 23rd, 2010
Ballard Power is an energy fuel cell company. They make zero-emission proton exchange membrane (PEM) fuel cells.

About ten years ago, this was the darling of Wall Street... rocketing up to $120 a share, before starting its long, slow slide to a bottom of just under a buck. But over the past fews months we've seen a turnaround.

Higher Highs, and Higher Lows equals Bull Market in Ballard

The benefits of a fuel cell is that it has "zero" emissions at the point of use. It is quiet, stable and can use hydrogen, one of the most abundant elements in the universe, as a power source. You may remember the host of news stories where the reporter would drink the pure water that came out of the tailpipe.

Ballards products are used in backup systems in telecommunications towers, transit buses, and forklifts among other niche products.

Ballard has been a leader in this technology for more than ten years and has over 2,000 patents and licenses. The company has a state-of-the-art factory and is teamed with Daimler AG and Ford in a private venture to develop hydrogen fueled cars.

I've never been an investor in Ballard before, nor have I recommended it. But it's starting to look interesting.

The company now has a market capitalization (number of shares times share price) of only $208.4 million. They also have $82.2 million in cash and only $2 million in debt. If you net out the cash and debt, they have a market capitalization of $128 million.

You have to think a value of just $128 million puts them in a buyout range of a number of companies. Their patents have to be worth that.

Exxon Mobil (XOM:NYSE) has $10 billion in cash. They could buy Ballard for the PR value. Ford (F:NYSE) has $32 billion in cash. That makes Ballard a rounding error.
Dan Steffens
Energy Prospectus Group
wilboro
Posts: 7
Joined: Mon Apr 26, 2010 2:44 pm

Re: Fuel Cell Companies

Post by wilboro »

It is hard to tell which alternate technology will go big time and which will not. Over the last 12 years I have invested in many and profited from few. If a company is cheap it is likely cheap for a reason.
Post Reply