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Technology Stocks : FCL - FuelCell Energy -- Ignore unavailable to you. Want to Upgrade?

To: billkirn who wrote (351)	2/15/2000 6:18:00 PM
From: Sid Turtlman	Read Replies (2) \| Respond to of 407

Bill: I'm still quite long FCL. Even though the stock has been a ten bagger from its lows of two years ago, its market cap is still pretty small relative to its sales potential, and it is especially cheap on a relative basis, compared both to PLUG and BLDP of the real fc companies, and even more so compared to the market caps awarded certain bogus OTC BB stock promotions (you know which ones I mean.) That being said, in the long run the company has to perform. It has to get orders, and that will depend on its ability to get its costs down to the point where many customers will want to buy its products. That is sort of a chicken and egg kind of thing, but I believe that it can be solved with an injection of capital that will allow it to produce in the quantities necessary to achieve the cost targets. There has been a lot of interest in the company from Wall St. of late, and I think that the odds are good that that will manifest itself in some attractive corporate finance opportunities before very long. Fortunately, FCL has in its favor the fact that its technology is now quite proven. Its products work, and there is nothing left to design or change to create the initial commercial product. (Both BLDP and PLUG are somewhat behind FCL in this respect - they are still testing units with the intent of using what they learn to design their initial commercial products.) And the fundamental advantages of FCL's carbonate technology over everyone else's PEM remain - carbonate's much higher efficiency and the value of its high quality heat. This is still a risky stock - there are no guarantees when you are dealing with a development stage company. But BLDP and especially PLUG are every bit as risky, at 20 times FCL's market cap.