PALM BEACH, Fla.--(BUSINESS WIRE)--Nov. 23, 1999--
RAM Capital Upgrades Investment Opinion on DCHT
With a 12-Month Price Target of $8.00 Per Share.
Cites Strong Expected Revenue Growth
RAM Capital Management of Palm Beach Florida, has upgraded it's
investment opinion on DCH Technology, Inc., (OTC BB:DCHT), seeing a
return to the highs of $8.00 set in May 1998.
Strong revenue growth is now anticipated over the next 6 to 24 months, as
an
influx of large orders for their patented hydrogen gas sensors and leak
detection
systems take off.
Recent breakthroughs in their chip manufacturing process combined with
strong indications from customers make it likely that the company has entered
into what may be their greatest period of accelerating revenue and earnings
growth.
At a recent investment conference in NYC attended by this analyst, DCH
announced that they had been selected by a major fuel cell manufacturer to
provide hydrogen sensors as part of their fuel cell power systems. This
purchase, together with options, is valued at over $2.4 million. Utilities,
car
companies and government agencies are all investing hundreds of millions right
now in improving fuel cell technology in order to meet the demands for
efficient,
clean power around the world.
In our opinion, the selection of DCH hydrogen sensors by this one
manufacturer is just the beginning. We see this as the creation of a de-facto
standard in the fuel cell industry to use the DCH hydrogen sensor as the
premier
embedded safety device for all hydrogen related fuel cell systems; the "DCH
Inside" the system. We see DCH rapidly increasing their market share of the
current $440 million hydrogen detection industry, and becoming the dominant
player in fuel cell safety, with revenue estimates in the tens of millions as
hydrogen and fuel cells are implemented into the economy.
In transportation, DCH has four automobile manufacturers testing their
sensors for a variety of use in hydrogen fuel cell and hybrid vehicles. The
selection by only one of these companies could mean tens of millions in
revenue, not eliminating the possibility that ALL, automobile companies will
be
using them.
For aerospace and defense applications, DCH has also formed a multi year
strategic alliance with AlliedSignal, (NYSE:ALD)(NYSE:HON), to develop
aerospace systems integrating DCH technology for missions ranging from active
corrosion control and nuclear safety to the development of hydrogen powered
vessels. With strategic partners such as AlliedSignal Honeywell, and the
possibility of partnering with one or more of the major automakers, we see DCH
as a tremendously under-priced emerging growth company, warranting serious
attention from the investment community; particularly the socially responsible
equity and aggressive growth mutual funds that seek long term capital
appreciation.
With industry leader Ballard Power, (Nasdaq:BLDP), trading with a market
cap of $2 billion, and the recent IPO of Plug Power, (Nasdaq:PLUG), already
trading at $800 million, we feel the time is right for the investment
community to
embrace DCHT, and assign it a sharply higher market cap than today's $17
million; bringing it more in line with the rest of the fuel cell energy
sector. Even
at $10.00 per share, DCHT will still only have a $170 million market cap,
representing a small fraction of their industry peers.
On Nov 15, 1999, DCHT was awarded a contract to incorporate its Robust
Hydrogen Sensor into ClorTec's system for installation at the Palmdale Water
District facility. This contract will allow DCHT to develop a major presence
in
water treatment plants, a market that has been independently sized at over
19,000 facilities. This is a new market for DCH sensors and is expected to
provide an unexpected revenue stream and further demonstrates the versatility
and cross cutting capabilities of DCH technology.
On Oct 18, 1999, Stephanie Hoffman joined DCHT as Vice President and
General Manager of Fuel Cell Operations from Eaton Corporation, (NYSE:
ETN), where she was the Director of Strategic Technology Planning and the
Business Technology Manager of the Cutler-Hammer Products and Services
division. Ms. Hoffman is a proven leader of technical innovation teams and
experienced in fuel cell business planning, and is expected to oversee the
rapid
expansion of DCHT's fuel cell division in Madison Wisconsin, which is
currently underway.
On July 19, 1999, the DCH fuel cell was chosen by NorthWest Power
Systems, (NYSE:IDA), as part of a $3.5 million dollar order from Bonneville
Power Administration for a highly publicized testing project by several of
their
utilities. Upon the delivery and successful demonstration of this working 3 kW
fuel cell, (expected to be delivered in the coming weeks), DCH should receive
follow up orders to complete more of this project.
We have every reason to anticipate a major increase in interest for DCH
fuel
cell systems, complete with sensors to ensure their safety, and we believe
that
DCH will be viewed as the fuel cell systems integrator of choice in
applications
below 10kW.
About the Company:
DCHT manufactures hydrogen specific sensors and safety systems, with the
assistance of AlliedSignal. DCH licenses technology developed by the US Dept.
of Energy's National Laboratories. These leak detection systems are targeted
to
the emerging hydrogen energy infrastructure, which is currently estimated to
be
worth $2 billion annually today, and over $1 Trillion over the next decade.
DCH
is also a manufacturer of PEM fuel cells, which is expected to bring solid
revenue growth to the company in the coming years as a result of the marketing
efforts of the major fuel cell players and automotive manufacturers listed
above.
The growth of the fuel cell industry is anticipated to be as great as the
growth
of the PC.
Current customers for the Robust Hydrogen Sensor include Aerospace
Corporation, Alcoa, Allied Signal, Argonne National Laboratory, Ballard Power
Systems, Duracell, Exxon, Ford, General Motors, Horiba Instruments,
Hydro-Quebec, Johnson Controls, Lockheed Martin, Los Alamos National
Laboratory, Lucent Technologies, Mobil Oil, Morrison-Knudsen, NASA,
Nissan Motor Corporation, Northrop-Grumman, Northwest Power Systems,
NUPEC (the Japanese nuclear regulatory agency), Phoenix Gas Systems, Pratt
& Whitney, Spokane Research Labs, TJH2B, TRW, Twyman Safety, the
University of California at Riverside, the University of Minnesota, the
University
of Nevada at Las Vegas, Westinghouse and many others.
We feel that as DCH continues to forge alliances with industry giants,
such as some of the one's listed in this report, we will be rewarded with a
sharply higher stock price than it's current $1.00 per share. (Nov 22,1999)
For further information regarding this report contact: Steven Oshinsky, GM at
561-338-3390 ramcapitalmanagement.com Email:
info@ramcapitalmanagement.com
DCH products can be viewed at copower.com
Or contact DCH Investor Relations directly at: 661-775-8120, ext. 11.
dcht.com
DCHT Financial Data is available from the SEC archives at
sec.gov
Disclaimer: RAM Capital Management is not a Registered Investment
Advisor or a Broker/Dealer. RAM has prepared this report independently of
DCH, and is not affiliated with or contracted to DCH. The material is from
publicly available sources believed to be factual, but does not guarantee its
accuracy or completeness. This is not an offer to sell or the solicitation of
an
offer to buy. These forward-looking statements are based on current
expectations and differences can be expected. Any opinions expressed are
subject to change without further notice, and may not necessarily be
reprinted in
future publications or elsewhere. The reader assumes responsibility for any
loss
arising from any use of this report or its contents. Pursuant to Section
17(b) of
the 1933 Act, RAM advises the readers of this electronic document that it
received a fee of 100,000 free-trading common shares and $5,000 on Feb 7,
1999, and Dec. 1998 for services ended April 1, 1999. As of the date of this
opinion, neither RAM, it's officers or affiliates, own any free trading common
shares of DCHT.
--30--nmb/mi*
CONTACT: RAM Capital Management, Palm Beach
Steven Oshinsky, GM, 561/338-3390
ramcapitalmanagement.com
Email: info@ramcapitalmanagement.com
or
DCH Investor Relations
661-775-8120, ext. 11.
dcht.com
KEYWORD: FLORIDA
INDUSTRY KEYWORD: INVESTMENT OPINION |
