Not sure if this was posted but it is definitely a good spin
Money News
Global Thermo stock soars on Delphi deal
CALGARY, April 16 (Reuters) - Global Thermoelectric Inc. (GLE-T) shares almost tripled on Friday after it said it will develop an advanced fuel cell system for Delphi Automotive Systems Corp. (DPH-N), the world's largest auto parts supplier.
The stock soared even though Calgary-based Global Thermoelectric didn't disclose the value of the contract it received from Delphi, which is to be spun off as an independent company by parent General Motors Corp. (GM-N) next month.
The shares zoomed up C$7.21, or nearly 207 percent, to close at C$10.70 with 7.2 million shares changing hands, double the volume it traded when it hit its previous high on Monday of this week.
Analysts said investors bid up the stock because they were comparing it with Vancouver-based fuel cell developer Ballard Power Systems Inc. (BLD-T). Ballard shares have risen more than 400 percent since the start of 1997 on excitement over its relationships with DaimlerChrysler (DCX-N) and Ford Motor Co. (F-N).
Interest in using fuel cells to power cars, buses and even railroad locomotives has grown sharply in recent years as emission standards have tightened over environmental concerns, especially in the United States.
"The street is saying Global's technology is even better than Ballard's," said one Calgary-based analyst who asked not to be identified.
Fuel cell technology turns hydrogen gas into electricity and leaves only water vapor in its exhaust. Its developers say it will challenge the century-old dominance of the gasoline-powered internal combustion engine.
"This commitment is a major endorsement of our fuel cell work," said Jim Perry, president and chief executive of Global. "We have been searching for a strategic partner to facilitate rapid progress on our fuel cells development programs, and we are delighted that a company with the resources and reputation of Delphi has selected us as their partner."
A spokesperson for Flint, Michigan-based Delphi said the contract awarded to Global Thermoelectric was for a nominal amount.
"This order involves advanced alternate fuel technology, but we can't give out more information at this time because of confidentiality agreements," said Delphi's Linda Beckmeyer.
($1=$1.49 Canadian)
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KEITH |
