RESEARCH REPORT BY OSHINSKY ON DCHT, in case the link no longer works...
DCH TECHNOLOGY, INC. OTC-BB: DCHT April 14, 1999
27811 Avenue Hopkins #6
Valencia CA 91355
IR Phone 805-775-8120 ext.11 Shares Outstanding: 14 million
IR Email DCHTinfo@aol.com Float: Approx. Under 4 million
Website dcht.com DCHT has no outside debt
HYDROGEN SENSORS - FUEL CELLS - GAS DETECTORS & MONITORS
DCH Technology, Inc. is a manufacturer of hydrogen sensors, gas detectors and process monitors, licensed from such major United States National Laboratories as Sandia, Oak Ridge, National Renewable Energy Laboratory, and Canada's Simon Fraser University.
The current market for gas sensors is estimated at US$2 billion today, and growing.
dch-technology.com
DCH has projected $105 million in revenue and $26 million in net profit, spread over the next 5 years from sales of the Robust Hydrogen Sensor. This forecast does not factor in revenue from other products.
dch-technology.com
Current customers for the Robust Hydrogen Sensor include NASA, General Dynamics, General Electric, Ford, Westinghouse, Allied Signal, General Motors, Lockheed Martin, The US Naval Medical Research Institute, Phoenix Gas Systems and many others.
BACKGROUND
The hydrogen economy is upon us. There is renewed attention on global warming and air pollution in Washington. Words like fuel cells and alternative energy are becoming beltway buzzwords.
On March 17,1999, DaimlerChrysler unveiled its first Hydrogen Gas car.
dailynews.yahoo.com
On January 26, 1999, the Clinton Administration requested $7.6 Billion in funding and tax credits for alternative energy technology development. This marks a dramatic expansion of the U S Government's role in funding renewable energy research and development.
DCH has been quietly preparing to provide the safety systems necessary for this emerging energy industry. US hydrogen sales in the last 5 years have grown at an average annual rate of more than 25% during 1993-1997, including the addition of 7 on-site plants to serve gasoline refineries. Hydrogen is also very dangerous, and becomes explosive when it reaches just 4% concentration in air; therefore monitoring and measuring the fluctuating levels, in order to activate safety control equipment or to sound an alarm is vital to avoid hazardous situations, explosions and loss of life.
Only the DCH sensor is equipped to monitor variations in levels of hydrogen in extreme industrial environments, to signal the increasing danger and the need for maintenance.
dch-technology.com
DCH sensors are also being used also in nuclear safety projects with Westinghouse. Their first project was the retrofitting of the Leningrad nuclear reactor with Robust Hydrogen Sensors.
dch-technology.com
DCH anticipates significant revenue from the power transformer and semiconductor industries, and has taken the first steps towards penetrating those highly lucrative markets.
dch-technology.com
DCH also anticipates significant revenue from the $ 5 Billion annual highway infrastructure and bridge repair industry, and has taken the first steps towards penetrating that market as well.
dch-technology.com
HYDROGEN-POWERED FUEL CELLS
DCH is teamed with the US Department of Energy's Los Alamos National Lab developing the PEM Fuel Cell. The total market for fuel cells in 1998 was $355 Million and is projected to reach US $1.3 Billion annually by 2003, a 29.5% annual growth rate.
Companies in Japan, Europe, and the US are readying production lines to satisfy fuel cell markets estimated to be worth several billion dollars annually, over the next ten years.
DCH is focused on the smaller consumer sized design for "portable" or remote power. DCH's fuel cell will be ready for worldwide distribution in mid to late 1999.
Daimler Chrysler has said that their electric powered fuel cell cars will be ready for mass production by 2004.
dailynews.yahoo.com
DCH believes that their sensor technology will play a vital role in the development of these fuel cell powered cars. In a May 19, 1998 press release, David Haberman, DCH Chairman and VP of Technology and Planning stated,
"DCH's proprietary hydrogen and natural gas sensors provide fast,
accurate gas measurement that is necessary for both integrated safety
and feedback control in refueling systems. The transportation
applications demand chemical selectivity to prevent false signals and the
Robust Hydrogen Sensor and Universal Gas Sensor are both designed
to provide high signal confidence. Based on our discussions with Ford
and General Motors, we believe that the use of DCH equipment in the
production of these vehicles, on-board these vehicles and in the
refueling infrastructure will be specified by both OEMs and the evolving
regulations."
dch-technology.com
DCH is emerging as a leader in the $1 Billion fuel cell and $2 Billion gas detection markets at a time when both industry and government are making multibillion dollar commitments of their own towards their successful integration into the US economy.
DCH is developing smaller fuel cells to power scooters, motorbikes, and rechargeable batteries. DCH believes that this market will develop far sooner than the market for electric vehicles and homes.
Even Lee Iaccoca, the famed former Chief Executive of both Ford and Chrysler, has caught the vision and has backed an electric bicycle company, EV Global.
evglobal.com
LATEST SIGNIFICANT DEVELOPMENTS
April 8, 1999
DCH successfully demonstrated their PEM Hydrogen Fuel Cell, for the first time publicly, at the 10th Annual National Hydrogen Association Meeting in Vienna, Va., simultaneously powering a small portable television, a CD player and a fluorescent light.
Mar. 25, 1999
DCH forms Strategic Alliance with Xybernaut Corporation to Co-Market and Sell the Xybernaut Wearable Computer, the Mobile Assistant (MA-IV), integrated with the DCH Robust Hydrogen Sensor. This is a major opportunity for DCH to capitalize on their unique sensor products and gives DCH immediate access to Xybernaut's established sales, marketing and distribution channels. This new integrated product will be unveiled April 7th through April 9th at the National Hydrogen Association meeting.
ramcapitalmanagement.com
Mar. 15, 1999
DCH unveils its first Carbon Monoxide Gas Monitor with Embedded Artificial Intelligence. This revolutionary new sensor, also known as their Universal Gas Detector, will now permit integrators to install CO sensors into safety and process monitors in over 200 industries worldwide. DCH has a backlog of orders for this sensor and will begin full-scale production this year.
biz.yahoo.com
Mar. 4, 1999
DCH and Allied Signal announced a multiyear strategic alliance to integrate DCH sensors into AlliedSignal products for hydrogen energy and other systems.
biz.yahoo.com
Feb 18, 1999
NASA awards FreeWing the UAV contract.
Feb. 17, 1999
DCH Sensors have been selected by Antaeus Corporation for use in its "smart'' bridge monitoring system, to be used for corrosion detection associated with aging bridge structures. The U.S. Government spent $5 Billion in 1998 maintaining and rehabilitating bridges.
biz.yahoo.com
Feb. 11, 1999
DCH and Freewing Aerial Robotics Corp., have begun a development program to integrate Hydrogen PEM Fuel Cells into the Freewing Tilt-Body Unmanned Aeronautical Vehicle (UAV). UAV's are in demand in both military and the emerging commercial marketplaces with total market demand estimated at between $2 to $4 Billion.
sdcd.gsfc.nasa.gov
Nov. 18, 1998
DCH Chairman Dave Haberman is appointed to the Hydrogen Technical Advisory Panel (HTAP) to the U.S. Congress, by Department of Energy Secretary Bill Richardson. HTAP reports to Congress on the Department of Energy's implementation and appropriations pursuant to the Hydrogen Future Act; authored by new DCH board member Bob Walker and signed into law in 1996.
eren.doe.gov
DCH Chairman Dave Haberman is also the 1999 President of the California Hydrogen Business Council, which is active in promoting the growth of hydrogen and also coordinates with and supports the goals of the National Hydrogen Association.
wmrs.edu
The DCH Technology story has not yet come to the attention of the investment and analyst community, and is still virtually unknown.
SUMMARY
DCH is supplying hydrogen safety devices to a growing $200 Million dollar market. The overall gas sensor market is $2 Billion.
DCH is weeks away from entering the $1 Billion a year Fuel Cell market.
DCH has No Debt, outside from loans from corporate officers.
DCH has an experienced management team, with careers stemming from RCA Aerospace, Rockwell, Los Alamos National Laboratory, Aeronautics Corp. of America, General Instruments, Motorola, etc.
DCH is projecting $105 Million in Revenue and $26 Million in Net Profit from sales of only one of their products, the Robust Hydrogen Sensor, over the next 5 years.
By using stock to pay for services and R&D, they have remained free of outside debt. They have kept their outstanding shares low at roughly 14 million, with a float of under 4 million (Mar. 27, 1999).
DCH Technology has now targeted June 15, 1999 to become a fully reporting company. While it cannot be guaranteed they will meet that target, the indications are very positive.
It is our opinion that DCH will qualify for Nasdaq small cap listing by year-end, 1999.
For more information contact:
Steven Oshinsky, GM
E-mail: RAMCapMgmt@aol.com
Phone: (561) 338-3390
Fax: (561) 394-9695
Web Site: ramcapitalmanagement.com
DISCLAIMER: The information and opinions in this report were prepared by RAM Capital Management; an independent private consultant. RAM is not an investment advisor or a broker dealer. RAM does not undertake to advise you of changes in its opinion or information. RAM and others associated with it may make markets or specialize in, have positions in and effect transactions in securities of companies mentioned and may also perform or seek to perform investment banking services for those companies. RAM and/or their affiliates or their employees have or may have a long or short position or holding in the securities, options on securities, or other related investments of issuers mentioned herein. As of Feb 8, 1999, RAM has received compensation for services of 100,000 shares of DCH Technology and a monthly expense fee of $ 5,000. The investments discussed or recommended in this report may be unsuitable for investors depending on their specific investment objectives and financial position. Where an investment is denominated in a currency other than the investor's currency, changes in rates of exchange may have an adverse effect on the value, price of, or income derived from the investment. Past performance is not necessarily a guide to future performance. Income from investments may fluctuate. The price or value of the investments, to which this report relates, either directly or indirectly, may fall or rise against the interest of investors. Private investors should obtain the advice of a qualified professional about their investments. Do not use this report as the basis for an investment in DCHT. Nothing herein shall be construed as investment advice. Statements contained herein are made as opinions and are not endorsed by the company. Nothing to the contrary is implied or intended. In the opinion of RAM, only accredited investors who have the financial capability to withstand the entire loss of their investment should consider trading in or investing in OTC BB securities. RAM assumes no liability from the unauthorized posting or reprinting or downloading of this report to or from any electronic or Internet related forum.
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