The 52 week high

Why you should own Fuel Cell Energy (NASDAQ: FCEL)

2007-08-20T04:49:00.000-07:00

On March 27th, the Connecticut Clean Energy Fund (CCEF) recommended projects that incorporate 68 megawatts of Fuel Cell Energy's (NASDAQ: FCEL) product as part of Connecticut's Project 100, renewable power initiative. The stock put in a then 52 week high that day at $9.30. For perspective, the Company has an installed/backlog base of 31 megawatts. The potential value of the Connecticut selection is over $200 million and would turn Fuel Cell Energy into a legitimate, commercial stationary power provider. Now the relevant kicker, the Hartford Advocate recently reported that the State's two utilities are scheduled to report to the Connecticut Department of Public Utility Control by August 21 on which projects they recommend building for the Project 100.

Fuel Cell Energy is the only fuel cell pure play you should consider as a long. With the increasing environmental cost of coal consumption and the lack of nuclear traction the U.S., natural gas is a common fuel for new power plants. Fuel Cell Energy’s products can run on natural gas as well as methane gas, cooking oils and other renewable sources. They don’t have to wait around for a future hydrogen economy, their products work with our current infrastructure with virtually no pollution. As governments and businesses are required to reduce their emission levels, Fuel Cell Energy's products are a tested, reliable and efficient option. Beyond their success and tax breaks in Connecticut and California, South Korea recently passed legislation that favors fuel cells. In February, Fuel Cell Energy signed a distribution and manufacturing agreement with POSCO power that has already resulted in orders of 7.8MW.

The potential Project 100 development in Connecticut would be a huge catalyst for Fuel Cell Energy shares. Trading in FCEL has been erratic over the past three weeks, including a new 52 week high. A move above resistance at $10 would signify a true breakout. The short interest on this stock is insane. It was last reported at 14.5 million shares or 31% of the float. If Fuel Cell Energy were to get a good portion of the recommended 68 megawatts, you'll already want to own shares when the short squeeze starts.

DISCLOSURE: THE AUTHOR IS LONG FUEL CELL ENERGY

Gigabeam (Nasdaq:GGBM) Up big on a nasty day yesterday, investor call today

2007-07-25T04:44:00.000-07:00

GigaBeam Corporation (NASDAQ:GGBM - News) is hosting an investor conference call today, Wednesday, July 25, 2007 at 12 noon Eastern, to discuss the Company's recent orders and other milestone strategic achievements. The Company is making solid progress in their strategy to penetrate major metropolitan areas with next generation wireless technology able to bypass existing telecom infrastructure at speeds equal to 1000 DSL lines, known as WiFiber. WiFiber is similar to terrestrial fiber in terms of speed and reliability, yet has a substantial advantage because WiFiber can be rapidly deployed at a fraction of the cost of terrestrial fiber. Last Friday they announced "milestone orders" accounting for 24 additional WiFiber links for use in the Western United States. Yesterday, they announced an order for four additiional WiFiber links for their South African reseller. The Company has also announced recent orders in several US regions, the Middle East and Europe.

Based on this week's action, traders are expecting big things out of Gigabeam. The stock closed at $5.93 yesterday, up 22% on an otherwise massacre of a day on the Nasdaq. Last Friday, Gigabeam closed at $2.80 and had traded between $2.06 and $9.55 in the last 12 months. Gigabeam also has a very low float of 6.5 million shares and traded 4.6 million shares today , so dont go crazy and buy 100,000 shares or anything. Also of note, Gigabeam had just regained Nasdaq compliance by naming an independent director and audit committee member in early July. Their previous independent director resigned in the first quarter.

Current GigaBeam partners and customers include Google, Verizon, ING, Sprint, The Department of Defense, as well as several cities and universities such as San Francisco and Boston University. The DoD made a follow on order through a reseller in May and I would expect them to be a pretty picky wireless customer.

Gigabeam is an exciting company that should continue to make news for years to come. A word of caution, this is an extremely speculative stock so be careful and dont get too greedy. The investor call today should fuel continued interest in the stock, will we see the 52 week high?

DISCLOSURE: The author is long Gigabeam, Inc.

First Solar (Nasdaq: FSLR) - Pullback to the 50 day moving average?

2007-07-24T05:02:00.000-07:00

First Solar, Inc. (Nasdaq: FSLR) announced some interesting equity news last Friday. The Company's CEO sold 250,000 shares as part of a prearranged trading plan and First Solar filed a registration statement with the Securities and Exchange Commission for a proposed offering of up to 9,650,000 shares of its common stock. The 9,650,000 shares to be registered include 5,650,000 shares owned by certain stockholders of the Company. The value of the offering approximates $1B.

Coincidentally, the FSLR daily chart is showing it's first real sign of weakness since going public in November last year. The MACD has turned harshly negative and the stock has closed below the 10 day moving average the last five days. A pullback near the 50 day moving average, currently at $83.53 is likely at some point. The last two pullbacks under the 10 day moving average approximated the 50 day.

In addition, FSLR has a market cap that appoaches $8 billion with a current year projected P/E of 218, well above its peers. First Solar is a great company with a solid future ahead of it; the stock has just gotten way ahead of itself. The irrational excitement surrounding solar will shift to another clean tech "sector" soon. Fuel cells, microturbines, flywheels, wind turbines, hyrdrogen, butanol and others are calling. The $1B offering, the CEO selling shares and the technical breakdown should provide a great short opportunity right now.

DISCLOSURE: The author has no position in First Solar, Inc.

Fuel Cell Energy (Nasdaq: FCEL) - Take that and double it!

2007-07-23T05:31:00.000-07:00

Lot's of reasons to be excited about Fuel Cell Energy. Of the 15 career opportunities currently posted on their website, one is for a third shift, manufacturing and production team leader. A third production shift from a Company with a history of sporadic orders, it's pretty clear some large orders are imminent.

Some background; Based in Danbury, CT FuelCell Energy (Nasdaq: FCEL) develops and markets Ultra-Clean stationary fuel cell power plants that generate electricity with up to twice the efficiency of conventional fossil fuel plants – and with virtually no air pollution. The Company has more than 60 commercial fuel cell units operating at 50 installations all over the world. The company’s Direct FuelCell® (DFC®) power plants have generated more than 160 million kW hours. Countries and certain states have been passing legislation favorable to fuel cells at an increasing rate.

FuelCell Energy's power plants use a variety of "fuels" ranging from natural gas to cooking oils. These jokers dont have to wait for some futuristic hydrogen infrastructure to develop; they make production sales today and at an increasing rate.

In April, the Connecticut Clean Energy Fund (CCEF) selected six energy projects, encompassing 68 MW of the Company's fuel cell products, under the state's 2003 State Energy Act that requires utilities to enter into long term power purchase agreements with developers to purchase not less than 100 MW of Class I renewable energy by 2008. The six projects, ranging in size from a 2.4 MW hospital project to 20 MW grid-support power plants, are now being evaluated by Connecticut's two major utilities and the state's Department of Public Utility Control (DPUC). The Company also signed a 10-year manufacturing and distribution agreement with POSCO Power, Korea's largest independent power producer and a subsidiary of POSCO, one of the world's largest steelmakers.

In the Company's last quarterly release in June, the Chairman and CEO said they were ramping up production to accommodate current and expected orders from Asia, California and Connecticut. They also reported significant improvement in their backlog and product cost-to-revenue ratio. The stock was trading under $7 at that time and closed Friday at $8.25. It's been in a technical uptrend since late May where it has consistently closed above it's 10 day moving average. The uptrend has slowed the last two weeks, however a good base has now been formed in the $8.20's. This base should provide a solid buying opportunity, a breakout from the current range would occur above $8.40 or below $8.00.

The unstoppable momentum of clean tech should finally overcome major obstacles with the confluence of high oil prices and greater acceptance of global warming. Even if the moronic right wingers in the US refuse to embrace renewable energy; certain states like Connecticut and California are joining European and Asian governments and businesses in their quest for clean power.

Sorry solar, it's time to share the spotlight with FuelCell Energy. This stock could well double before the end of the year.

DISCLOSURE: THE AUTHOR IS LONG FUEL CELL ENERGY