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Technology Stocks : Ballard Power -world leader zero-emission PEM fuel cells -- Ignore unavailable to you. Want to Upgrade?

To: Hawkeye who wrote (4880)	1/22/2000 9:13:00 AM
From: HarveyO	Read Replies (1) \| Respond to of 5827

Ballard benefits from Gates's fuel-cell play Microsoft chairman's private investment in U.S. firm sparks round of buying in 'very new industry' PETER KENNEDY British Columbia Bureau Saturday, January 22, 2000 Vancouver -- Signs that software billionaire Bill Gates is getting in on the fuel-cell craze helped spark another round of buying that sent North American fuel-cell stocks, including Ballard Power Systems Inc., soaring to record territory. Analysts say the buying frenzy, which drove shares of Burnaby, B.C.-based Ballard Power up $8.90 to $112.50 on the Toronto Stock Exchange, is being driven by a recent series of good-news announcements from companies in the sector. For example, in the past two weeks alone, Ballard has unveiled a new high-powered version of pollution-free, fuel-cell technology that it hopes will eventually replace the internal combustion engine in cars and buses. It also plans to build a $400-million (U.S.) plant to produce up to 300,000 units a year of the new fuel-cell stacks, which it hopes to adapt for use in power generators that will be sold in the Japanese housing market. Analysts say these announcements are getting so much media attention that retail investors are suddenly waking up to the fact that fuel cells may become part of their daily lives within the next 10 years. And, judging by a recent investment, Microsoft Corp. chairman Bill Gates is proving to be no exception. Fuel-cell stocks rose again yesterday after it was revealed that Mr. Gates's private investment vehicle, Cascade Investment LLC, has taken a 5-per-cent stake in Avista Corp., the Spokane, Wash., utility that is developing fuel-cell power plants for the residential market. "The speculation is that he is a shrewd investor, and he is buying this because Avista has this hidden asset," said Ronald Tanner, a utilities analyst with Legg Mason Wood Walker in Baltimore, Md. Reaction to Mr. Gates's investment sent Avista shares up $14.25 (U.S.) to $46.37 on the New York Stock Exchange yesterday. Signs that Mr. Gates has developed a yen for fuel cells is thought to be behind yesterday's rise in other fuel-cell stocks, including Plug Power Inc. of Latham, N.Y., which jumped $23.87 to $108.87 on the Nasdaq Stock Market. Global Thermoelectric Inc., a Calgary-based developer of power generating equipment for remote locations, also rose $5.45 (Canadian) to $26.50 on the TSE. However, analysts warn these stocks have risen so quickly that some may be in for a fall once investors begin to focus in on which companies stand the best chance of bringing their technology to market. "This is still a very, very new industry," said Christine Farkas, a special situations analyst with Merrill Lynch in New York. She said these companies are targeting different sections of the fuel-cell market. Some are developing power cells purely for the auto industry, while others are going after the stationary-power and portable-generator markets. Ballard is developing its technology for all three. "It doesn't make any sense to me that these stocks are doing this well," said Mr. Tanner. He said fuel-cell stocks have come so far so quickly that many are beginning to take on valuations that resemble Internet stocks. "This is starting to get up into that kind of frenzy," he said. Others said investors may be taking their cue from William Ford, chairman of Ford Motor Co., which is developing fuel cells in a joint venture with Ballard and DaimlerChrysler AG. Mr. Ford recently told an auto industry trade conference that vehicles powered by traditional combustion engines will eventually be replaced by clean-burning fuel-cell engines. "It's going to be a winning situation all the way around -- consumers will get an efficient power source, communities will get zero emissions and auto makers will get another major business opportunity -- a growth opportunity," he said.