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Technology Stocks : Fuel Cell Investments -- Ignore unavailable to you. Want to Upgrade?

To: Jack Hartmann who wrote (113)	11/17/2000 8:33:43 AM
From: Jack Hartmann	Read Replies (1) \| Respond to of 280

Infrastructure and Partnerships Ignite Fuel Cell Success, Says Top Sector Analyst StockHouse.com Columnist Brian D. Robinson, Nov. 17, 2000 In an exclusive interview, Allied Business Intelligence (www.alliedworld.com) senior energy analyst, Atakan Ozbek, told StockHouse a solid infrastructure is essential for any of the major fuel cell developers to emerge as the leader. "Infrastructure is going to be the mother of all problems, but at the same time it's going to be the decisive factor for the (fuel cells) technology especially in the automotive fuel cell sector," says Ozbek. Ozbek recently returned from the Power Generation 2000 conference in Orlando, Florida, has been following the energy sector with a special interest in fuel cell stocks for ABI for some time. But Ozbek says nearly three quarters of the fuel cell developers have very little cash in the bank, and little or no revenue to date. Partnerships in establishing supportive infrastructure technologies are essential to long-term survival for these fledgling developers. As evidence of the importance of infrastructure partnerships in supporting fuel cell technology, industry leader, Burnaby, BC-based Ballard Power (NASDAQ: BLDP) has made two such equity partnerships in as many months. On September 27, Ballard announced an equity partnership with Millennium Cell (NASDAQ: MCEL) of Eatontown, NJ., locking up Millennium's hydrogen storage technology for use with its portable power fuel cell products. On October 30, Ballard signed another equity deal with QuestAir, a privately held company in Burnaby, BC, for the exclusive right to QuestAir's hydrogen purification and oxygen enrichment technology for use in its PEM fuel cell applications. "Of all the fuel cell developers, Ozbek sees Ballard as possessing the most advanced technology, with more promising partnerships than any of the other developers competing in the sector." Of all the fuel cell developers, Ozbek sees Ballard as possessing the most advanced technology, with more promising partnerships than any of the other developers competing in the sector. Ozbek sees more opportunities for developers like Ballard to reach out and incorporate new technology with its own. "Acquisitions become essential. That's why Cisco (NASDAQ: CSCO) buys 20 companies a year and you're going to see the same thing from Ballard." Other emerging developers are positioning for expansion either through alliance or acquisition. Ozbek thinks players like Manhattan Scientific (OTC BB: MHTX) have promising technology. But without a major alliance of some sort, its market support could wane, "They have to come up with a partnership in the laptop or wireless market, otherwise their stock is going to get hammered." Ozbek cites Calgary's Global Thermoelectric (TSE: GLE) and FuelCell Energy (NASDAQ: FCEL) of Danbury, CT as examples of developers who have managed to sign alliances to help push market recognition and inject much needed capital into development. Global Thermoelectric's deal with Enbridge -- Canada's largest natural gas distributor, and FuelCell's distribution alliance with Enron (NYSE: ENE) --the top wholesale natural gas marketer in the U.S. -- are both examples of more deals in the pipeline. Two newcomers to the sector are H-Power (NASDAQ: HPOW) of Clifton, NJ and Proton Energy (NASDAQ: PRTN) of Rocky Hill, CT, both of which had their IPOs this summer. "If H-Power or Proton Energy -- developers with fundamental technology -- keep up their technology advances, by this time next year they will be announcing the same deals like Ballard and FuelCell Energy have announced," says Ozbek. With the bulk of alliances, and the inevitability of pending mergers on the horizon, Ozbek predicts 2001 as a pivotal year for many of the developers as they emerge as possible contenders in an increasingly competitive space, which will see many left behind. investorlinks.com Jack