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FuelCell Energy Inc. Message Board

  • wsswearingen wsswearingen Feb 6, 2001 3:39 PM Flag

    CNBC Article Bullish on FCEL

    What do the shorts have to say about this?

    "Heat's on for Fuel Cells"

    This may be the winter of discontent for Californians, who have experienced rolling blackouts as their state's deregulated energy regime collapses. But things could get even worse when summer comes and energy demand rises along with the mercury.

    That, say some analysts, will put more pressure on West Coast businesses to look for long-term alternatives to the local utitilities--ways to get cheaper and more reliable source of power. The short-term alternatives are few. But, longer term, new energy technology will play a role.

    And, in that scenario, the stock most likely to succeed could be FuelCell Energy Inc. {FCEL, News, Boards}. Despite a recent attack by shortsellers questioning its technology--is thought to be the closest to bringing a working industrial-sized fuel cell generator to market.

    (Article continues...)

    Sam Brothwell, an analyst at Merrill Lynch, in a research note published on Monday cited FuelCell Energy and Ballard Power Systems as two firms that are particularly well positioned to deliver alternate energy technologies. We would focus on getting in sooner rather than later," he wrote.

    FuelCell Energy Inc. is the acknowledged leader in developing a technology called "carbonate fuel cells" that appears to have several critical performance advantages over competing approaches. The most important is the greater amount of heat generated by the process, which can be used to drive electricity-producing turbines and for other complimentary purposes, such as heating and air-conditioning.

    FuelCell Energy's stock, however, was attacked with a short-sell recommendation last month published by Off Wall Street Consulting, a small Boston-based analytical group that provides advice to institutional buyers.

    Representatives of Off Wall Street Consulting declined to be interviewed by but several other analysts who have seen their report contend that it relied on old information, in particular, an early test of a carbonate fuel cell stack that did not contain more recent refinements to the technology.

    "Those are outdated issues," says Maurice May, an analyst with Friedman, Billings, Ramsey & Company, based in Arlington, Virginia.

    May currently has his firm's second-highest recommendation, along with a $75 12-month price target. "FuelCell Energy has done a better job than most of holding on to its [market capitalization] because of the progress it is making.

    Brooke Glenn, fuel cell analyst at Jefferies & Company, based in New York, says her own independent investigation of FuelCell Energy Inc.'s technology, which included recent interviews with U.S. Department of Energy scientists, also leaves her feeling confident about the validity of the current product in the company's pipeline.

    "I'm not getting that from the company," she says. "I'm relying on data from the DOE."

    Glenn recently reiterated her "buy" rating on the stock, which is her firm's highest recommendation. She has a $185 12-month price target.

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