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To: Archie Meeties who wrote (82887)	12/28/2000 8:53:58 AM
From: Zeuspaul	Respond to of 95453

Another unsolicited plug for fcel and it will be tempting to short this company whose market cap is north of 1bill and revenue was 20mill for the fy ending in oct. When is your guess for coming round of dilution? I see they've taken the # of authorized shares from 20 to 150million The stock is very volatile and there are good times to short it. Existing revenues mean very little as they are derived primarily from research contracts with the government. The management is conservative and has been reluctant to dilute in the past. The recent dilution was to move from development stage to production. My guess is if orders overwhelm the soon to be completed production facility then plans will be made for a second larger production plant. The authorization to go from 20 to 150 million is to prepare for this eventuality and/or stock splits. The company will not have to dilute to finish the production facility now under construction. NG fuel cells the answer to California's energy problem? Certainly not..I don't think I said that. Indeed FCEL's problem is they are not positioned to provide product just in time. Plans are now in the works for energy production facilities...major decisions for fuel cells will not be made as they are considered untested in the conservative field of power production. However distributed power will likely play a roll in the long term solution. The distribution system is also in need of upgrade..so bringing power closer to the demand has an advantage as it does not require upgrading the transmission lines. The whole sector should underperform in 01 as clean air regulations are rolled back (as has already happened in California) and Bush supports nuclear and coal. I agree. That is why I indicated surprise at the performance of FCEL since the election. I don't know why the stock has been moving up in the short term. However long term IMO market forces will drive it up as FCEL has a competitive advantage because it can produce power from NG more efficiently and cleaner than most power plants. Zeuspaul