Realistically, I think FuelCell
Revenues for the third quarter were essentially flat year over year at $8.7 million, while net losses increased to $18.7 million from $17 million. With losses of this magnitude, FuelCell has resorted to distracting shareholders from them with a tool called the ratio of costs to product sales and revenue. This ratio was essentially flat year over year at 2.83 to 1. The company has been busily working at commercializing fuel-cell technology since 1999, and certainly has made excellent progress, signing up key customers like Gills Onions this quarter, but I wager it has been a long wait for shareholders, with consistent dilution in one form or another.
For alternative energy plays like Ballard Power
However, investors should be concerned about the group's predictions for alternative energy and some key milestones. Now, given that this survey is from a group of mostly industry insiders and industry experts, you'd expect the results to be a little more biased toward the positive, which makes the actual predictions all the more depressing. The group predicted the development of a "highly advanced" battery in 2012, that solar cells would become affordable enough for a decent return on investment in 2014, and a hydrogen fuel mass-produced car in 2018. While FuelCell is aiming at a more marketable niche (power generators) that could experience success earlier, the story still remains the same: Investors are in for a long wait. This Fool isn't that patient.
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