Well, the markets seem to be speaking. The markets clearly like fuel cell technology much more than our favorite Xonon for clean energy production.
cbs.marketwatch.com
From Yahoo!, nine-month revenue $6.7 million/ net loss $25 million. Sounds like the internet version of distributed power. Xonon, which works and is just about on par with fuel cells, gets no significant valuation, while PLUG has a market cap of nearly $3.4 billion, with losses into the foreseeable future. Interesting that PLUG's market cap is now higher than that of BLDP!, and nearly 5X Catalytica.
The markets have spoken in other ways this week as well. During the sharp sell-off early in the week, CTAL was down. During the sharp snap-back today, CTAL was down; all week on low volume. This was despite increases in both the utility and pharmaceutical sectors.
I believe in Catalytica the company, and the management. They have built a solid company from nothing. I applaud them for that. Unfortunately, at least for now, the market participants just do not care. The pharmaceutical side is strong and, I suspect, will grow earnings predictably. Xonon is the potential powerhouse, with an actual realizable potential at least as big as fuel cells. But until the market decides to assign it importance, our stock's price will languish at these low levels; essentially unchanged in three years. Xonon has been on the horizon for too long now. We need to see evidence of orders VERY soon, or I bet we trade quite a bit lower from here, which hampers the ability to make strategic acquisitions and turns people off to the investment over the long haul.
Something radically different needs to be done to get Xonon recognized. If over the long run Xonon cannot compete with the fuel cell on the combination of performance, price and durability, then let's move on to other ventures. If it can, then there has to be a way to demonstrate this to the community. GET THE WORD OUT or CTAL will languish forever. Some folks on the Yahoo! thread say, "Buy the pharm and get Xonon for free." The way the Xonon roll-out has been until now, that may be all it's worth.
Disappointed, but still holding my loooonnnggg position.
Best wishes to all,
Erik |
