TraderXx:
Your question to Mr. Pink caught my eye. Actually I followed them closly last year and just refreshed myself. Follows is a news release announcing the resignation of BLDPF's CFO this past June. I made a few bucks on this announcment as IMHO Mr. Umeadly was saying (in corporate speak) that he and BLDPF had done a wonderful job marketing the technology and now it was time for someone to deliver the goods (meaning profits) so he was taking his leave. My take on this was that Umeadly didn't feel it was possible and he resigned allowing him to sell his 10 mil in stock without having to file those 144's and explain to BLDPF's partners why he was selling out. This is pure conjecture on my part. None the less his departure seemed to mark BLDPF's decline to 15 bucks a share. I should tell you that the dream of fuel cell powered auto's is just that, a dream. The cost and engineering challenges are immense. The busses they have opperating in Chicago run on Hydrogen which is impracticle for auto's. On top of that are the cost challenges. The auto companies that have invested in BLDPF have done so because it's cheaper than them reinventing the wheel and pursuing this technology on their own. Additionally they get good PR out of it. Besides if it did go commercial in automobiles, the auto companies would expect to get it at manufactured cost. Auto companies control what their suppliers make based on return on capital. BLDPF is a big research venture supported by pie in the sky engineers and investors who like to dream about perpetual motion machines. Anyway enough of the technical BS, this company has no hope of making real profits IMO.
With a current market cap of 2.7 bil (US I think) and the current climate of low oil prices (this type of stock will jump if oil is viewed as scarce) and no profits comming out of BLDPF (3rd qtr 98 was a loss comapred to 97) I think you have found a good short, however given this stocks following it won't move fast.
Having said all this you need be aware that BLDPF belivers are quite emotional about it, however Aura Systems, Orbital engine, Turbodyne and others that offer the promise solving polution and or improving transportation have all proven to pipe dreams, yet because of the technical complexity they scare away many shorters and attract a lot of ignorant investors.
They do have a lot of cash (350mil, Canadian I think at the end of the 3rd qtr) however they obtained $348mil from financing and burned $140 in 1998.
Good timing, I think I'm going to get back into this one tommrow.
DISTRIBUTION: Business Editors
LENGTH: 601 words
HEADLINE: Ballard Announces Change in Senior Management
DATELINE: VANCOUVER, British Columbia
BODY:
June 12, 1998-- BALLARD POWER (TSE:BLD.)(NASDAQ:BLDPF) Ballard Power Systems announced today that Mr. Mossadiq S. Umedaly has tendered his resignation as the Company's Vice President and Chief Financial Officer.
Mr. Umedaly joined Ballard at the beginning of 1990. Since that time, Ballard has evolved from a small development company into the world leader in PEM fuel cells. For nine successful years, Mr. Umedaly was a key part of the team that developed, and executed, Ballard's commercialization strategy. As Ballard is making the transition to a manufacturing company and management roles evolve, he has chosen this time to resign. During the transition period resulting from his departure, Mr. Umedaly will assist in the transition and will continue to make available his expertise to Ballard. Pending the selection of a permanent replacement, Paul Lancaster, Ballard's Treasurer, has been appointed acting Chief Financial Officer.
"Mossadiq is a colleague and friend whom I have worked closely with for many years. Together with the management team, we have faced and overcome many challenges as we developed and executed Ballard's commercialization plan," said Firoz Rasul, Ballard's President and Chief Executive Officer. "I respect Mossadiq's desire to take this opportunity to step back and pursue other challenges as Ballard evolves into a manufacturing company. Ballard has the necessary management depth, and as we continue to add resources to build broad capabilities throughout the Company, we will complete the transition with a minimum of disruption."
"Working to make Ballard a success has been very challenging and the most enjoyable period of my career. The Company has the depth of people and clarity of strategy to meet the challenges ahead and the time is right for me to spend time with my family and consider other opportunities. I have confidence in the team that I have worked hard to help develop at Ballard and their ability to succeed in the years ahead. Building companies and creating value is, and will continue to be, a key part of my life," said Mossadiq Umedaly.
Ballard Power Systems is the world leader in the development of proton exchange membrane fuel cell power systems. At the heart of its products is the Ballard Fuel Cell, a proprietary zero-emission engine that converts natural gas, methanol, gasoline, or hydrogen fuel into electricity without combustion. Ballard Fuel Cells are currently being used by leading international companies including Daimler-Benz, Ford, General Motors, Chrysler, Nissan, Hitachi, Honda, Mazda, Volkswagen, Volvo, Matsushita Electric Works, GPU International, GEC ALSTHOM, EBARA, and Cinergy to develop zero- emission engines for vehicles and clean stationary power plants.
CONTACT: Ballard Power Systems Inc.
Paul Lancaster, 604/ 412-3195
604/412-4700 (FAX)
investors@ballard.com
or
Ballard Power Systems Inc.
Debby Roman, 604/412-4740
604/412-3131 (FAX)
debrom@ballard.com
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LOAD-DATE: June 13, 1998
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