FuelCell Energy, Inc. (FCEL)

How does a company lose money every year for 10 straight years and keep operating? The company says that they need to sell 75-100 MW per year to reach a positive net income. They had something like 20-30 MW of backlog at the end of 2007 (up from around 5-8 MW at the end of 2006). They are making progress.

But their present manufacturing capacity is 50 MW per year with a current expansion program up to 60 MW. So even if they grow their sales to 100 MW, they will have to invest a huge sum of money to deliver the goods. It seems that this will raise the required sales even higher. One good note, they have little debt. Which leads to the questions how does a company lose money every year for 10 years and still keep operating?

The stock price doesn't seem to be related to the company's performance. This stock jumps around so much, I am sure that there will be another peak soon. It has only happened like 5-6 times in the last 10 years. But the valleys seem to be getting lower.

So here is my guess: it will remain low for a short time and when fuel prices go up, it will jump up and then quickly drop again. I will pick outperform and then if it gains 50% (price of around $10), I will end my pick and then pick underperform.

IF, and I mean IF, they can get through the expansion phase, I think they will do well. Very long term (10 years): OUTPERFORM.

Substantially undervalued relative to its potential. As DoD optimizes use of alternative fuel sources, FCEL will continue to become more profitable. Industrial concerns will also be increasing their use of FCELs products incrementally at first, but in a year or so, the rate of usage will begin to increase dramatically.

1. The company has never reported positive earnings (at least in recent memory), the business has produced -$53.73 million in cash in the past four quarters, and the most recent quarter’s profit margin stood at -110.89%.

2. As interesting as fuel cells are, it will be at least several years before it is a source of energy worth producing and using. Someday, maybe, but it will take a lot of cash to keep this baby running for much longer.

3. The only thing keeping the company going is its string of share offerings to the public over the past few years.

Going big on the development and future of fuel cell technology. These guys seem to have the advantage in market, look for a big bounce on future earnings.

0 pe ratio and we're getting dangerously close to the end of the DOW's absurd climb. People are running around like idiots buying stocks from companies that promise to build clean burning engines that run on tabouli. That's fine if you are just riding the stock price based on investor's temporary perception of value, but when the wheels fall off the DOW they are to be royally screwed.

You people are crazy and obviously don't understand the first thing about the mechanics of what it takes to produce power via fuel cell. Fuel cells are outrageously expensive to build, and I'm not talking solar cell expensive, I mean stratospheric expensive. Fuel cells ARE NOT like solar, where they have been having large investments and new technological developments, like thin-film solar. I mean, look at their income statement, they are selling huge set ups for less than cost. If I need 1.4 MW of power, its not going to be from a multi-million dollar fuel cell rig, I'll just spend less than $100,000 for a diesel or natural gas burning generator. Fuel cells might have some real world applications- on mars, where there aren't any fossil fuels (presumably), but there is water, that can be split into hydrogen and oxygen by solar cells and recombined later by fuel cells to generate power. I don't see us going to mars anytime soon though.

daily chart pattern has a bullish downard wedge formation; the daily MACD and price have a bullish convergence; weekly pattern has a bullish ultimate oscillator and price convergence; with a Democratic congress calling for reducing tax breaks for oil companies in favor of alternative energy, then should see a breakout in stock price

FCEL will go down from here (Jan06) (I hope) before it goes up; possibly getting below $5 before the turnaround. They are clearly the world leader in their 'space', of large, stationary, fuel-flexible quiet power plants. Only two years cash at the current burn rate, cost-out product program is succeeding, and is on the cusp of a tipping point if a large order (e.g, tens of megawatts, such as from Connecticut) comes though that enables them to cut cost of production significantly. Outlook in California, Japan, and Korea - in that order- has never been brighter on their side due to new government polices in all three places. I hope to buy at 5 or below; these guys have refined and refined their product, their customer and partner bases and business plans over the years, and I tend to agree with them that over the next twelve months a turning point should be pretty apparent.

FCEL has been slowly improving performance over the last couple of years. I believe the company will continue to generate new interest in it's fuel cell technology.

the longgggggggggg run :)

Two to three year holding

Wake me up if/when it's profitable.

:: rolls over and goes to sleep ::

As Fuel Cells become more available, FCEL will be able to grow with their experience in the current markets.

I have been a long time follower of FCEL so I have seen its ups and downs. I am convinced that this stock is now ready to establish itself. It is not dependent on hydrogen infrastucture and could be a future star performer on waste plants installations alone. Fuel cells have low or no emissions and this is KEY, more important even, than cost competitivity with oil. Combine a greener pesidency and congress in 2009 with improved efficiencies, costs, and furure global rise in oil consumpion, and I think you have an umbeatable winner. FCEL is uniquely able to make use of alternative fuel sources to creat energy also. If they break through with a company such as SSL and utilize coal converted fuels to produce emission free electricity they will become a huge huge player in the future global energy scene.

Are fuel cells the future of power generation? Maybe, maybe not. But I'll take that leap of faith here in CAPS.

These guys hold a heavy amount of natural gas, hydrogen and petroleum fuel cell technology and patents. They have been consistently moving ahead with new work contracts for over a year. In the long-term outlook they have great potential value for those willing to wait even just a year or two from now to cash in. Alternative, sustainable energy technology is an undeniable force and this company is leading the vanguard.

Fuel Cell Energy makes alternative energy distributed power plants. They are on the fine edge between commercialization and bankrupcy, and are burning cash and not generating profit-making orders. But they also tend to cycle with the price of oil/nat. gas. Despite their dificult prospects of moving products in this weak spending environment, I anticipate that their stock price will bounce once oil and nat. gas come off their lows...throw on top of that the democratic government, and some BO bailout $$ supporting green initiatives, and this stock appears to have nowhere to go but up.

Fuel cell-based power plants are a quiet, clean, and reliable way to supply 24/7 distributed power. These characteristics are highly desirable for hospitals, hotels, grid support, and mission-critical applications.

The Connecticut Clean Energy Fund advisory committee has selected six energy projects incorporating 68 megawatts of the firm's products out of a total of 98.6 megawatts in project bids submitted along with its partners.

Posco Power has signed an agreement with FuelCell Energy and announced plans to invest $70 million in its fuel cell business that includes building a manufacturing facility with a capacity of 50 megawatts by 2008 and 100 megawatts by 2010.

The bad news is out of the way and profit margins will improve. Clean energy is a buzz right now and anything having to do with it glistens in the media hype.