To: Les H who wrote (37854 ) 1/24/2000 12:40:00 PM From: Haim R. Branisteanu Read Replies (1) | Respond to of 99985
Well and they thing this is investing <GG>dailynews.yahoo.com Why not call for what it is??? Sunday January 23 10:01 AM ET Fuel Cell Fever Sends Utilities Soaring By Nigel Hunt LOS ANGELES (Reuters) - Fuel cell fever has spread to some normally staid utilities, sending their stocks soaring as investors snap up shares in what many see as the power source of the future. Fuel cells, which proponents say will eventually provide power for everything from cellular phones to automobiles and homes, generate power electrochemically from hydrogen or methane without combustion. News that Microsoft Corp. (NasdaqNM:MSFT - news) Chairman Bill Gates had taken a 5 percent stake in Spokane, Wash.-based utility holding company Avista Corp. (NYSE:AVA - news) helped to spark even more investor interest in an already hot sector. Many saw his investment as linked to Avistas fuel cell unit, Avista Labs. ''An endorsement from Bill Gates certainly doesn't hurt,'' said analyst Eric Prouty of FAC/Equities, a division of First Albany Corp. ''This (fuel cells) could be the next big potential sector along with the Internet and biotech. These companies are addressing a huge market,'' he said, noting the global power market was one of the world's largest. Avista shares jumped 14-1/4 to 46-3/8 on Friday on the New York Stock Exchange, while Idacorp (NYSE:IDA - news), another Northwest utility with a fuel cell unit, rose 3-3/4 to 38-1/4. A 19th century invention, fuel cells were first used to produce useful energy by the U.S. space program in the 1960s. The majority use hydrogen as a fuel, some use methane while a few use liquid fuels such as methanol. As long as fuel and oxygen is supplied to the cell it will keep producing electricity. Earlier this week Motorola Inc. (NYSE:MOT - news) announced its researchers had developed a miniature fuel cell that may one day replace traditional batteries in laptop computers, cellular phones and other devices. Leading automaker Ford Motor Co. (NYSE:F - news) predicted this week that vehicles powered by traditional internal combustion engines will eventually be replaced by clean-burning fuel cell engines. Investor interest in the sector's huge potential was raised in part by an initial public offering for fuel cell company Plug Power (NasdaqNM:PLUG - news) in October of last year, Merrill Lynch analyst Sam Brothwell said. Plug Power shares were trading up 23-7/8 at 108-7/8 on Nasdaq on Friday, more than seven times the IPO price of 15. ''It is definitely right now a very hot topic,'' Brothwell said. Commercial applications of fuel cell technology are still two to four years away but investors are banking on future potential in the same way that they poured funds into money-losing Internet stocks, analysts said. With stocks of ''pure plays'' such as Plug Power and Canada's Ballard Power Systems (Toronto:BLD.TO - news) now highly priced, analysts said some investors were looking to invest in other companies which are developing products in the sector. Avista is planning to cash in on investor interest by spinning off its fuel cell unit next year. Others are looking at their options. ''Recent activity in the market linked to fuel cell technology has prompted a lot of discussion within the company,'' Idacorp spokesman Jeff Beaman said. Others companies that may benefit if the sector takes off include IMPCO Technologies (NasdaqNM:IMCO - news), Energy Conversion Devices Inc. (NasdaqNM:ENER - news) and SatCon Technology (NasdaqNM:SATC - news), Prouty said. IMPCO shares were up 3-13/16 at 22-11/16 on Friday, Energy Conversion shares were 4-3/8 higher at 16-7/8 and SatCon shares were up 3-31/32 at 23-15/32. Haim