Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: northam who wrote (205)	8/30/2023 1:52:11 PM
From: robert b furman	1 Recommendation Recommended By northam Respond to of 211

Hi northam, I almost NEVER buy a non dividend paying stock. My only deal breaker was their joint venture with XOM. XOM could buy them cash or stock (I'd prefer the stock and it dividend). A year or two XOM created their total businesses into three divisions. The change resulted in a consolidation of upstream and downstream while creating a new division aimed at making their existing operations functioning in a lower level of CO2 creation. They have been on a subdued buying spree. The Denbury acquisition was a big acquisition for 4.9 billion, made primarily for the pipeline to a shale field deposit that needs advanced recovery techniques using CO2 injected into the ground. Denbury has that experience AND the pipeline. With multibillion dollar projects with Linde and of course their own vast assets, if Fuelcell's modular at location equipment is proven to in the lead, which many suggest, They will soon become profitable, with expansion/growth being their big problem, Recent quarters have progressed. As their revenue has doubled, their EPS loss has approached the EPS loss to <.38>. With a EV capitalization of 480 million per TDA (my current market cap is 650 million) XOM could snap them up with stock and not even notice the new fast growing division. XOM likes to build equipment in a modular design. That allows it to be transported and installed anywhere in the World. It has been an acquired expertise after chasing oil all over the world. The FPSO approach (FPSO's are made in South Korea) to deep water drilling in Guyana is a classic example of how they do world wide business projects. It is interesting that they have loaned Fuel Cell a team of 20 scientists in an effort to develop the progress quicker. Terms of the development makes XOM a joint company owning the patents they develop. The joint venture has been extended to March of 2024 (6 to 7 months). That puts the pressure on FCEL to ramp and prove their equipment on a commercialized basis - which is also now ongoing in the US and Europe. If I was a big owner of FCEL stock, and wanted a nice low taxation bump in pay - I'd pray for XOM to acquire FCEL and start getting some of those $3.61 per share dividends. They'd issue 585,000 shares and roll in the income - just as they did with the Denbury acquisition. They are currently buying back 17.5 billion worth of shares this calendar year. A pimple! With revenue only in the 77 million but having doubled in the last year, XOM could buy them and use them for their Gulf Coast on their refineries and their on location facilities for both chemicals and plastics. That would keep them busy for more than several years. I suspect a huge ramp of production with IRA support would put put them in them in the immediate profit column. Not to mention their other world locations and local businesses along the Gulf Coast - which is home for most of the US refineries.. IF PROVEN effective in producing CO2, the CO2 could be piped to their Denbury wells (with advanced enhancement processes), Eagle Ford (which peaked production last year), and The Permian shales (which are expected to reach peak production in 2024, (all the while getting $60 a ton for a ton captured CO2 - Thanks to the "INFLATION REDUCTION ACT). Nothing like getting paid for something you can use in another division that pays for it. The net result would be a big fat margin! This is a long term play and I intend to throw it in a drawer and fuggettabout it - as I add to it. LOL XOM has claimed the future revenue potential for Carbon Capture is : HOUSTON, April 19 (Reuters) - Exxon Mobil Corp. (XOM.N) estimates there will be a $4 trillion market by 2050 for capturing carbon dioxide and storing it underground, the company said in a presentation on Tuesday. That is about 60% of the $6.5 trillion market the U.S. largest crude producer estimates for oil and gas by then. Carbon capture is an important emissions reduction technology, according to the International Energy Agency (IEA). It involves the capture of CO2 from fuel combustion or industrial processes, transporting it via ship or pipeline, to be stored underground in geological formations or used as a resource to create products. XOM is a company that looks forward to the future more than any other company I have ever owned. They just keep it close to their vest. Thanks for your NASTY charts. <smile> Bob