Peter, DCHT, (now DCHTE until their Form 10 is approved),
went public via reverse merger in 1997, and was the victim of a pump and dump by the shell owners in May 1998. As engineers and aerospace guys, they had no idea what they were getting into, and they have paid the price ever since, but I believe that is past history and is no longer a factor in an investment consideration.
Beyond that, they never took the time to court NY, and without audited financials, it would have been a waste of time anyway. I did accompany DCH to NYC for the first time last month, and we were succesful in attracting our first fund manager who has become active in the stock. We return to NYC Nov 10 to appear at the Equities Magazine conference to speak in front of over 300 investors, fund managaers and analysts.
That said, they believe they will corner the hydrogen sensor market with their state of the art hydrogen leak detection systems, (developed at Sandia and patented in conjunction with Lockheed), and they are totally focussed on the below 10kW fuel cell market in which there is no real viable competition.
Ballard has long been a customer of DCH sensors, and probably will be a much larger customer as they get closer to auto commercialization.
Their form 10sb is located on the SEC website here,
sec.gov
This is a review I try to keep updated, and is a good place to start on your DD. I am available to speak to you or anyone else privately for additional info.
DCH TECHNOLOGY, INC. OTC-BB: DCHTE (Oct 22, 1999)
27811 Avenue Hopkins #6 Valencia CA 91355
IR Phone 805-775-8120 ext.11 Shares Outstanding: 14 million
Float: Approx. 5 million
Web dcht.com
DCHT has no outside debt
HYDROGEN SENSORS - FUEL CELLS - GAS DETECTORS & MONITORS
DCH Technology, Inc. is a manufacturer of hydrogen sensors, gas detectors and process monitors; the technology licensed from the Sandia National Laboratory, and PEM Fuel Cells; also licensed from the US Department of Energy's Lab at Los Alamos.
The current market for gas sensors is estimated at US$2 billion today, and growing.
Hydrogen gas detection is estimated at $ 440 Million annually.
DCH has projected $105 million in revenue and $26 million in net profit, spread over the next 5 years from sales of the Robust Hydrogen Sensor. This forecast does not factor in revenue from their fuel cell division, which may dwarf the sensor business.
Current customers for the Robust Hydrogen Sensor include NASA, General Dynamics, General Electric, Ford, Westinghouse, Allied Signal, General Motors, Lockheed Martin, The US Naval Medical Research Institute, Phoenix Gas Systems, and many others.
DCH has been quietly preparing to provide the safety systems for the emerging hydrogen energy industry. US hydrogen sales have grown at an average annual rate of more than 25% per year during 1993-1997, including 7 new plants to serve gasoline refineries.
Hydrogen becomes explosive when it reaches just 4% concentration in air; therefore monitoring and measuring the fluctuating levels, in order to activate safety controls to avoid explosions and loss of life.
Only the DCH sensor is equipped to monitor variations in levels of hydrogen in extreme industrial environments, to signal the increasing danger and the need for maintenance.
Westinghouse is using DCH sensors in nuclear safety projects. Their first project was the retrofitting of the Leningrad nuclear reactor, with DCH Robust Hydrogen sensors.
dcht.com
DCH anticipates significant revenue from the power transformer and semiconductor industries, and has taken the first steps towards penetrating those highly lucrative markets.
DCH also anticipates significant revenue from the $ 5 Billion annual highway infrastructure and bridge repair industry, and has taken the first steps towards penetrating those markets.
Daimler Chrysler has said that their electric powered fuel cell cars will be ready for testing in California by 2001. Every one of those cars will need several reliable sensors.
DCH believes that their sensor technology will play a vital role in the development of these fuel cell powered cars. In a May 19, 1998 press release, David Haberman, DCH Chairman and VP of technology and planning stated,
" Based on our discussions with Ford and General Motors, we believe that
the use of DCH equipment in the production of these vehicles, on-board
these vehicles and in the refueling infrastructure will be specified by both
OEMs and the evolving regulations."
HYDROGEN-POWERED FUEL CELLS
DCH is teamed with the US Dept. of Energy's Los Alamos National Lab developing the PEM Fuel Cell.
DCH Chief Scientist Mark Daugherty, joined DCH directly Los Alamos in June 1998.
LANL is leading the charge in the United States for the commercialization of alternative and renewable energies, and specifically for DCHT, fuel cells. The Dept. of Energy has a an educational website on fuel cells at education.lanl.gov
DCH is developing fuel cells from 50W to 10kW, to provide electricity for such projects as scooters and motorbikes, various different marine craft, rechargeable batteries, small residences and businesses.
LATEST SIGNIFICANT DEVELOPMENTS
Sept. 1999 Stephanie Hoffman joined DCH in Sept. as Vice President and General Manager of the Fuel Cell Business. Ms. Hoffman comes to DCH from Eaton Corporation where she was Director of Strategic Planning and Business Technology Manager.
Aug 6,1999 DCH Files FORM 10 with SEC for full reporting status.
Aug 6, 1999 DCH selected by UNLV for hydrogen bus project.
July 19, 1999 Northwest Power Systems, a division of IdaCorp, (NYSE: IDA) announced the purchase of a 3 kilowatt fuel cell system from DCH, with additional sales pending.
dcht.com
May 12, 1999 DCHT was chosen by the Department of Energy's Hydrogen Program to manage a team of 22 organizations which includes Allied Signal, Pacific Marine, Hydrogen Burner, CryoFuel Systems and the American Bureau of Shipping.
the-signal.com
April 8, 1999 DCH successfully demonstrated their PEM Hydrogen Fuel Cell.
dch-technology.com
Mar. 4, 1999 DCH and Allied Signal announced a multi year strategic alliance to integrate DCH sensors into AlliedSignal products for hydrogen energy and other systems. dch-technology.com
Nov. 18, 1998, DCH Chairman Dave Haberman is appointed to the Hydrogen Technical Advisory Panel (HTAP) to the U.S. Congress, by Dept. of Energy Secretary Bill Richardson. eren.doe.gov
DCH Chairman Dave Haberman is the 1999 President of the California Hydrogen Business Council. http:www.ch2bc.org
The DCH Technology story has not yet come to the attention of the investment and analyst community, and is still virtually unknown.
DCH has an experienced management team, with careers stemming from RCA Aerospace, Rockwell, Los Alamos National Laboratory, Aeronautics Corp. of America, General Instruments and Motorola, etc.
DCH is projecting $ 105 Million in Revenue and $ 26 Million in Net Profit from sales of only one of their products, the Robust Hydrogen Sensor, over the next 5 years.
This forecast does not include fuel cell sales, which others have claimed to be a $4 Billion annual industry today, and forecast to be over $1 trillion over the next decade.
ramcapitalmanagement.com
copower.com
Dicslaimer: RAM Capital Management is not a Registered Investment Advisor or a Broker/Dealer. RAM has prepared this report independently of DCH and from sources believed to be factual, but does not guarantee its accuracy or completeness. This is not an offer to sell or the solicitation of an offer to buy. These forward-looking statements are based on current expectations and differences can be expected. Any opinions expressed are subject to change without further notice, and may not necessarily be reprinted in future publications or elsewhere. The reader assumes responsibility for any loss arising from any use of this report or its contents. Pursuant to Section 17(b)
of the 1933 Act, RAM advises the readers of this electronic document that it has received fees of 100,000 common shares and $5,000 on Feb 7, 1999, and Dec. 1998 for advisory services and that RAM or it's officers may in the future offer services to DCH, and that bias should be considered when reading this information. As of July 30, 1999, RAM has no contractual relationship to DCH other than as a shareholder, but as a result of compensation received in the past, this disclosure is offered.
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