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Technology Stocks : FUEL CELLS 1999's Hottest Sector

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To: Dr. Harvey who started this subject12/20/2000 1:22:22 AM
From: James F. Hopkins  Read Replies (1) of 171
 
The Hype and The Problem with Fuel Cell Technology
Most of the Hype is because Oil prices have gone so high, and that this offers a cheaper alternative.
Some of it has to do with Fuel Cells reduce pollution,
but it would not have got the press it did if oil
prices hadn't stayed high.
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Problem 1 is most Fuel Cells use natural gas or propane
and the price of that is going up faster than crude oil.
Problem 2 is the oil companies are the same ones who
produce natural gas so they can adjust just fine.
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Longer term one needs to ask just how popular would
Fuel Cells be if Oil went down to $10 a barrel.
If Fuel Cells did start to catch on OIL would drop
to offset it.
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The Technology will work and has been around for years
and years a form of Fuel Cells were in use back before
the turn of the century so this is not something brand
new , in special cases such as making small disposable
batteries it has merit.
However the more conventional diesel power plants
such as used on small boats now are
subject to stay cheaper to build run and maintain
for years to come, and with limited modifications to
to the engine they can also be converted to run on
natural gas.
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Bottom line is will they still have real demand if oil is
$10 or is this just a sequel to the dot.com hype
that handed investors their heads on a platter.
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I think there will still be time to buy this sector
after & IF they show some profit.
Jim
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