Hydrogen Fuel-Cell Companies Up Ahead Of 1 PM Bush Speech
DOW JONES NEWSWIRES
By Andrew Gelfand Of DOW JONES NEWSWIRES
NEW YORK -- Hydrogen fuel-cell companies stocks jumped Thursday in anticipation of a speech on alternative power sources by President George W. Bush and a speech Friday further outlining the government's freedom fuel initiative by Energy Secretary Spencer Abraham.
Shares of FuelCell Energy Inc. (FCEL), Plug Power Inc. (PLUG) and Quantum Fuel Systems Technologies (QTWW) all received a boost.
President Bush is scheduled to speak at 1 p.m. EST at the National Building Museum in Washington. He will focus on the government's fuel cell initiative he outlined during his Jan. 28 State of the Union address, in which he announced $1.2 billion in funding to reduce America's dependence on foreign oil and reduce pollution.
The initiative includes $720 million over the next five years to develop new technology.
The speech "should lend more support to the notion that the long-term energy future includes hydrogen as a major component," David Smith, an analyst at Salomon Smith Barney, said.
Adding to the momentum from Bush's speech is Abraham's remarks at the Economic Club of Detroit on Friday, he said.
Shares of Plug Power jumped 18.3% to $5.68, while FuelCell Energy rose 10.4% to $6.18 and Quantum Fuel Systems gained 8.4% to $3.10.
Hydrogenics Corp. (HYGS) stock was up 7% to $4.60, and Ballard Power Systems Inc. (BLDP) also got a 7% boost to $10.56.
Shares of H Power Corp. (HPOW), which Plug Power agreed to buy in November, increased 16.8% to $4.32. Energy Conversion Devices Inc. (ENER) shares rose 5.7% to $10.68.
"It's the biggest vote of confidence (for the hydrogen fuel-cell companies) when he's actually standing on stage saying he sees this happening in the next five to 15 years," Salomon's Smith said, referring to Bush.
The president was expected to tour the National Building Museum's exhibits, including one by Plug Power showing the company's current and next-generation fuel cell technology, a Plug Power spokeswoman said. Plug Power Chief Executive Roger Saillant would also be at the event, she said.
Energy Secretary Abraham's speech was expected to have chief executives on hand as well, Eric Prouty, an analyst at Adams Harkness & Hill Inc., said.
While research analysts said the two speeches should provide momentum for alternative energy stocks, the gains may be short-lived.
"Generally these stocks do move up on more macro news," or news affecting the whole industry, Prouty said.
However, with actual results for these companies far in the future, the stocks tend to drop off after the initial gains, he said.
"Certainly with a lot of news flow out there with the government, these things are going to remain highly volatile," the analyst said.
Analysts Smith and Prouty don't own shares of the companies mentioned in this story.
Adams Harkness & Hill has provided investment banking services to Quantum Fuel Systems in the past year. Salomon Smith Barney is a market maker in the securities of Ballard Power, Hydrogenics and Plug Power. |
