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Motley Fool on fuelcells

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  • Dave Cline
    http://www.fool.com/News/mft/2006/mft06090618.htm Alternative energy upstart FuelCell Energy (Nasdaq: FCEL) will report earnings tomorrow morning for the third
    Message 1 of 1 , Sep 6, 2006
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      http://www.fool.com/News/mft/2006/mft06090618.htm

      Alternative energy upstart FuelCell Energy (Nasdaq: FCEL) will report
      earnings tomorrow morning for the third quarter of fiscal year 2006.
      We'll take a look at the company to see whether or not we should
      expect sparks flying in the morning sun.

      ...

      If that describes you, I hope you're prepared to hold on for a few
      years, at the very least. This kind of change don't happen overnight,
      as a full-blown fuel cell revolution will take significant
      infrastructure changes and the technology is still not ready for prime
      time. Even FuelCell says that the power efficiency of its generators
      is only at 30%. That's about even with diesel efficiency and much
      better than the 11% or so for state-of-the-art solar panels, but well
      below the target efficiency of 50% for the type of large fuel cell
      generators that FuelCell Energy makes.

      This stock is expensive -- regardless of what metric or method you use
      for valuation -- and responds to the slightest surprise with wild
      swings. It's always tricky to come up with an accurate forecast for a
      small company like this, where the timing of a large order or two can
      substantially change the income statement, so I won't try. Right now,
      fuel cells are more of a gamble than an investment, and Fools rarely
      reach for the dice.

      Related companies:

      * Ballard Power (Nasdaq: BLDP)
      * Energy Conversion Devices (Nasdaq: ENER)
      * Honeywell International (NYSE: HON)
      * Plug Power (Nasdaq: PLUG)
      * Millennium Cell (Nasdaq: MCEL)
      * Teledyne Technologies (NYSE: TDY)
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