Fuel Cell Stocks Didn't Enjoy 2001
Staff -- Consulting-Specifying Engineer, 3/1/2002
Shares of fuel-cell companies "soared last year [2000], posting triple-digit gains during the California energy crisis. This year, as energy suppliers have rebounded, stock prices for the fuel-cell makers have sunk as much as 95% from the highs."
That's how The New York Times led off a report on fuel cell investments in its December 23, 2001 edition. According to Richard Giesen, manager of the Munder Power Plus mutual fund, "The valuations had gotten way ahead of themselves." Said David Schoenwald, co-manager of the New Alternatives fund: "The [fuel-cell stock prices] can be incredibly volatile. It's very hard to value these things."
Fuel-cell stock investments favored by fund and analysts and listed by the Times were: FuelCell Energy, Hydrogenics and Proto Energy Systems. The report noted that analysts and investors "say that the stocks will trade less on industry trends than on company fundamentals—and that the companies are risky investments because they are not yet profitable."
From Pure Power, Spring 2002.
