F/POST ARTICLE in full: Thursday, March 26, 1998
AFS soars as investors seek out 'baby Ballards'
By CAROL HOWES
Calgary Bureau The Financial Post
Growing interest in "Baby Ballards," which develop environmentally friendly fuel sources, have boosted the shares of Alternative Fuel
Systems Inc.
AFS stock (ATF/VSE) closed yesterday up 19› at a new 52-week high of $1.39, after rebounding in recent weeks from a low of 32›.
The Calgary based technology firm, with market capitalization of $23 million, has developed systems that allow gasoline-powered vehicles to
convert to compressed natural gas.
Shares of Ballard Power Systems Inc. (BLD/TSE), a developer of zero-emission fuel cells, have rocketed as the auto industry seeks new
technology to reduce carbon dioxide emissions.
Little has been heard from AFS, formerly known as Noram Environmental Solutions, for years. Its shares traded as high as $5 in the early
1990s.
On Jan. 19, AFS landed its first large commercial contract. It signed a letter of intent with Convertidores Cataliticos Mexicanos for the
conversion of at least 10,000 of Mexico City's microbuses over the next 10 years, for about $180 million.
The AFS system meets stringent emission requirements and natural gas engines generally offer fuel savings and require less maintenance.
On March 16, AFS said it had signed an agreement with Clean Exhaust Emissions Ltd., of Britain, to market its dual-fuel system in Europe. The
firm also recently introduced a new patented reverse-flow catalytic converter, which has captured the attention of some major U.S. players.
Laurel de Yturralde, and independent analyst and publisher of Bidding on Bay Street, said the company is poised to see some substantial
revenue for the first time in years.
"Most of the pain for the shareholders in this company is probably over," she said.
"It's an industry where things take a long time. These are big commitments in terms of money."
AFS president Gerry Klopp said the firm is "very, very close" to landing additional contracts. The Mexico deal "takes us out of the
development stage and puts us many years ahead of the mob," he said. |
