This is the latest in the series, edited and now including very brief financial summary comparisons to BLDPF, MKTY, MHTX and PWRE. If there are other companies in the related fields that should be included in the comparison please offer them.
This is by no means complete yet; call it work in progress.
DCH TECHNOLOGY, INC. OTC-BB: DCHT Feb. 24, 1999
27811 Avenue Hopkins #6
Valencia CA 91355
IR Phone 805-775-8120 ext.11
IR Email DCHTinvest@aol.com
Website dcht.com
Shares Outstanding: 11 million
Float: Approx. 3.4 million
Last Price 27/32 Feb.25, 1999
52 wk. high 8 1/4 low .40
THE COMPANY
DCH Technology, Inc. is a manufacturer of hydrogen sensors, gas detectors and process monitors, licensed from such major United States National Laboratories as Sandia, Oak Ridge, Simon Fraser University and the National Renewable Energy Laboratory. The current market for gas sensors is estimated at US$2 billion today, and growing. dch-technology.com
The 5-year sales projection for the Robust Hydrogen Sensor, DCH's first commercial product, is $105 million in revenue and $26 million in net profit. This forecast does not include any of the other products currently in development, making the total 5-year forecast very conservative in our opinion. dch-technology.com
Current DCH customers for the Robust Hydrogen Sensor include NASA, General Dynamics, General Electric, Ford, Westinghouse, Allied Signal, Dow Corning, General Motors, Lockheed Martin Defense Systems, The US Naval Medical Research Institute, and many other international aerospace and defense companies.
BACKGROUND
The hydrogen economy is upon us. There is renewed attention on global warming and air pollution in Washington. Words like fuel cells and alternative energy are becoming belt-way buzzwords. On Jan. 26, 1999, the Clinton Administration requested $4.05 Billion for alternative and renewable energy technology development and a $3.6 Billion tax incentive package for businesses and families to use renewable energy products, expanding government's role in renewable energy.
DCH has been quietly preparing to provide the safety systems necessary for this new industry. The recent explosions in the Ford plant and in the chemical plant in Pennsylvania seem to becoming all too common.
Hydrogen which is widely used, is explosive when it reaches just 4% concentration in air, therefore monitoring and measuring the gas in order to activate safety control equipment or to sound an alarm is vital to avoid hazardous situations. Only the DCH sensor is equipped to monitor building levels of hydrogen in extreme industrial environments to signal an increasing level of danger and the need for maintenance. dch-technology.com
For nuclear safety, DCH is teamed with Westinghouse to retrofit the Leningrad nuclear reactor with hydrogen sensors. DCH began delivery on November 2, 1998. DCH is still in discussions with Westinghouse to team on safety upgrades to nuclear facilities throughout the world. dch-technology.com
DCH also seeks to capture the vast untapped revenue potential of the power transformer and semiconductor industries, and has taken the first steps towards penetrating those markets. DCH expects this market to generate over $18 Million annually in the semiconductor industry alone. dch-technology.com
HYDROGEN-POWERED FUEL CELLS
DCH is teamed with the US Dept. of Energy and the Los Alamos National Lab to commercialize the PEM Fuel Cell. DCH will be unveiling their Fuel Cell April 7th - 9th
at the 10th Annual National Hydrogen Association convention in Tyson's Corner VA.
DCH believes their fuel cell will be ready for worldwide distribution in mid 1999. Companies in Japan, Europe, and the US are readying production lines to satisfy fuel cell markets worth several billion dollars annually, in then next ten years. The total market for fuel cells in 1998 was $355 million.
Today, when investors think of fuel cells, they tend to think of Ballard Power Systems, and their R&D work in developing fuel cells to power electric vehicles.
While there are a number of interesting comparisons that can be made between DCH and Ballard, Ballard is primarily developing fuel cell power technology for large stationary power systems, and secondarily for transportation while DCH is focussing on the smaller consumer sized design for "portable" or remote electric power.
From the spring of 1995 to 1998, shares of Ballard Power soared from $ 4.00 to $ 44.00 (adj. 3-for-1 stock split) on the Nasdaq and Toronto Stock Exchanges. Ballard's $2.1 Billion market cap and share price levels are attributable to investor excitement following the announcement of a strategic alliance and large investment in Ballard by Daimler-Benz and Ford to make fuel cells for cars, buses and trucks.
We believe the same thing can happen for DCH as they too are in discussions with Ford and General Motors to supply sensors and gas detectors to the emerging, alternative fuel vehicle and transportation industry. Excerpted from a DCH May 19, 1998 press release; David Haberman, VP of technology and planning stated,
"DCH's proprietary hydrogen and natural gas sensors provide fast,
accurate gas measurement that is necessary for both integrated safety
and feedback control in refueling systems. The transportation
applications demand chemical selectivity to prevent false signals and the Robust Hydrogen Sensor and Universal Gas Sensor are both designed
to provide high signal confidence.
Based on our discussions with Ford and General Motors, we believe that the use of DCH equipment in the production of these vehicles, on-board these vehicles and in the refueling infrastructure will be specified by both OEMs and the evolving regulations." dch-technology.com
DCH will be showcasing its prototype PEM fuel cell at the convention along with its full family of sensors. DCH believes that their smaller portable fuel cells are more economically viable and will be brought into commercial development far sooner than the larger units being developed to power electric vehicles and homes, thus giving DCH a major competitive edge over Ballard and other fuel cell developers.
DCH's advances in fuel cell technology and remote hydrogen sensor applications are propelling this company to the forefront of a rapidly growing industry at a time when the industry is getting hot!
LATEST DEVELOPMENTS
Feb. 17, 1999 DCH Sensors have been selected by Antaeus Corporation for use in its "smart'' bridge monitoring system, to be used for corrosion detection associated with aging bridge structures. The U.S. Government spent $5 Billion in 1998 maintaining and rehabilitating bridges. biz.yahoo.com
Feb. 11, 1999 DCH and Freewing Aerial Robotics Corp., have begun a development program to integrate Hydrogen PEM Fuel Cells into the Freewing Tilt-Body Unmanned Aeronautical Vehicle (UAV). UAV's are in demand in both military and the emerging commercial marketplaces with total market demand estimated at between $2 to $4 Billion. sdcd.gsfc.nasa.gov
Feb. 9, 1999, DCHT shipped its first new Deuterium Sensor and Process Monitor System. Deuterium is a heavier variety of hydrogen and is used in both industrial and nuclear operations. This is a major breakthrough in environmental safety and gas monitoring for the telecommunications and semiconductor industries, to name a few. AlliedSignal was selected by DCH to fabricate these devices.
dch-technology.com
Feb. 5, 1999, DCH completed a comprehensive review of all of its safety and process monitoring systems, at the request of a major US Aerospace and Defense Company, to verify that all DCH products are Y2K compliant. They are.
dch-technology.com
Feb. 5, 1999, Congressman John Peterson (PA-05) has accepted an invitation to give the keynote address at the National Hydrogen Association Annual Meeting. With participants from 15 nations, the upcoming meeting is expected to be the largest American meeting to address Hydrogen Energy as a viable alternative for America's future energy needs. house.gov
Jan 22, 1999, DCH announced the election of 20 year Pennsylvania Congressman Bob Walker, the author of the $ 100 Million Hydrogen Future Act of 1996 to their Board of Directors. Bob Walker is now the president of the Wexler Group, with partner Anne Wexler who has been called one of the most powerful lobbyists in all of Washington. Source wexlergroup.com
Nov. 18, 1998, DCH Chairman Dave Haberman is appointed to the Hydrogen Technical Advisory Panel (HTAP) to the U.S. Congress, by Dept. of Energy Secretary Bill Richardson. eren.doe.gov
HTAP reports to Congress on the Department of Energy's implementation and appropriations pursuant to the Hydrogen Future Act authored by Bob Walker and signed into law in 1996.
DCH Chairman Dave Haberman is also the 1999 President of the California Hydrogen Business Council, which is active in promoting the growth of hydrogen and also coordinates with and supports the goals of the National Hydrogen Association.
wmrs.edu
The DCH Technology story is only just now coming to the attention of the investment community and is considered by us to be an extremely undervalued gem with unlimited upside potential.
Trading Strategy
For short-term traders we feel an investment in DCHT below the $2.00 level, provides an extraordinary low risk opportunity with a short term upside potential to the $3.50 to
$ 4.50 resistance level.
For long term aggressive investors with a high-risk tolerance we recommend buying up to $5.00 and holding for long term price appreciation into the $12.00 to $15.00 level, or more in Y2000.
As of Feb. 15, 199
Market Cap / 1998 Revenue /Net Inc./Loss
BLDPF $2 Billion plus /$25 Million Cdn. /Gain $800,000 Cdn.
MKTY $140,000,000 /Rev. $21 Million US /Loss $ 4.3 Million
PWRE $ 36,000,000 /No Figures
MHTX $ 40,000,000 /No Figures
DCHT $ 11,000,000 /$ 160,000 /Loss $ 4.2 Million
Note: Price projections are based on the multiples of comparable companies in the fuel cell sector, as there is no basis for comparison in the hydrogen and gas sensor industry.
Note: DCH Technology has targeted April 1, 1999 to become a fully reporting company.
While it can not be guaranteed they will meet that target, the indications are positive.
For more information contact:
Steven Oshinsky, GM
RAM Capital Management
Email: RAMCapMgmt@aol.com
Fax: 561-394-9695
DISCLAIMER: The information and opinions in this report were prepared by RAM Capital Management; an independent private consultant. RAM does not undertake to advise you of changes in its opinion or information. RAM and others associated with it may make markets or specialize in, have positions in and effect transactions in securities of companies mentioned and may also perform or seek to perform investment banking services for those companies. RAM and/or their affiliates or their employees have or may have a long or short position or holding in the securities, options on securities, or other related investments of issuers mentioned herein. As of Feb 8, 1999, RAM has received compensation for advisory services of 100,000 shares of DCH Technology and a monthly advisory fee of $ 5,000. The investments discussed or recommended in this report may be unsuitable for investors depending on their specific investment objectives and financial position. Where an investment is denominated in a currency other than the investor's currency, changes in rates of exchange may have an adverse effect on the value, price of, or income derived from the investment. Past performance is not necessarily a guide to future performance. Income from investments may fluctuate. The price or value of the investments, to which this report relates, either directly or indirectly, may fall or rise against the interest of investors. Private investors should obtain the advice of a qualified professional about their investments. Do not use this report as the basis for an investment in DCHT. Nothing herein shall be construed as investment advice. Statements contained herein are made as opinions and are not endorsed by the company. Nothing to the contrary is implied or intended. In the opinion of RAM, only accredited investors who have the financial capability to withstand the entire loss of their investment should consider trading in or investing in OTC BB securities. RAM assumes no liability from the unauthorized posting or reprinting or downloading of this report to or from any electronic or Internet related forum.
|
