RAM Capital Announces Investment Opinion
PALM BEACH, Fla.--(BUSINESS WIRE)--Dec. 17, 1999--Palm Beach Florida based RAM Capital Management has selected a "micro" and "portable" fuel cell manufacturer DCH Technology, Inc, (OTC BB:DCHT) as its top technology pick for the year 2000. This is based primarily on market valuation comparisons of the other companies in the fuel cell sector.
As of the close of trading, Thursday Dec. 16, 1999, DCHT's market capitalization was only $21,000,000.
That is less than 1/20th of Manhattan Scientifics' $ 525,000,000, (OTC BB:MHTX), and 1/100th of the $2 Billion Ballard Power Systems. (Nasdaq:BLDP), (TSE:BLD). Others are Fuel Cell Energy, (AMEX:FCL) at $170 million, and Plug Power (Nasdaq:PLUG) at $1.2 Billion.
What separates DCHT from the other small and micro fuel cell developers is that they are delivering working prototypes for testing by major industrial partners now; including a scheduled January 2000 delivery of a fully integrated 3kW fuel cell system to the Bonneville Power Administration. This initial unit is part of a $3.5 million pilot program with NW Power Systems, (NYSE:IDA) who makes the natural gas reformer for the system. DCH is also designing the safety system with their hydrogen sensors for this unit.
Additional orders are anticipated upon the completion of testing.
We believe DCHT will be discovered by Wall Street in the upcoming year as investment professionals seeking to hedge their investments in the rest of the fuel cell sector look more closely at them.
DCHT common shares would have to rise to $10.00 to equal FCL; $26.00 to equal MHTX; $50.00 to equal PLUG, and $100.00 to equal BLDP. We note that BLDP is partnered with Ford, (NYSE:F) and Daimler-Chrysler, (NYSE:DCX), and PLUG is partnered with General Electric, (NYSE:GE), and Detroit Edison, (NYSE:DTE), and both have large cash arsenals which is funding their research and market development. DCHT signed a multi year strategic marketing alliance with AlliedSignal Honeywell in March 1999 (NYSE:HON), (NYSE:ALD).
DCHT Trading at only $1 3/8 per share is, in our opinion, a direct result of the lack of Wall Street analyst coverage of micro-cap stocks as a group and OTC bulletin board companies as a whole. This tremendous disparity in market cap has created a substantial opportunity for long term technology stock investors.
DCHT is expected to generate $100 million in revenue from their sensor division over the next 5 years. This revenue stream will fund their fuel cell capacity without incurring debt or substantial dilution. We see this as the preferred business model and reminiscent of the way Hewlett Packard was built.
A $21 million valuation for a fuel cell company, when the rest of the industry is trading between $170 million to over $2 Billion is far too low and is totally ignoring the growing sensor business. Their sensors are in long term testing now with four automobile company's, and several multinational corporations, including a division of Westinghouse, (NYSE:BPA) for the Leningrad Nuclear reactor.
DCHT is commercializing US Department of Energy fuel cell technology, developed at the Los Alamos National Laboratory and has demonstrated a working micro fuel cell throughout 1999 to several major corporations and the various branches of the US Government. The patented and proprietary robust hydrogen sensor was developed at the Sandia National Laboratory.
RAM's most recent Investment Opinion on DCHT can be found at businesswire.com
Other Analyst coverage of DCHT can be found at afund.com
DCHT Financial Data is available from the SEC archives at sec.gov
For further information regarding this report contact:
Steven Oshinsky, GM at 561/338-3390
RAM Capital Management web site: ramcapitalmanagement.com
Email: info@ramcapitalmanagement.com
Disclaimer: RAM Capital Management is not a Registered Investment Advisor or a Broker/Dealer. RAM has prepared this report independently of DCH, and is not under contract to DCHT. The material is from publicly available 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. RAM received 100,000 free-trading common shares on Feb 7, 1999, from DCH Technology, Inc. for services ended April 1, 1999. RAM Capital Management has invested in private placements in DCHT restricted securities in 1999.
CONTACT: RAM Capital Management, Palm Beach
Steven Oshinsky, 561/338-3390
ramcapitalmanagement.com
Email: info@ramcapitalmanagement.com |
