Fuel cell Energy, Inc (FCEL)

Discussion in 'Chit Chat' started by wiesman02, Dec 18, 2011.

  1. I was wondering what you all thought of this company. Its an alternative energy play that hasn't really taken off yet. Hell, the entire alternative energy sector has been absolute crap for the last decade. In my opinion, some of the stronger companies in the alt. energy sector will end up with some BIG gains. One of which, i think, is Fuel Cell Energy.

    This is what they do: http://finance.yahoo.com/q/pr?s=FCEL+Profile

    Pluses:

    1) Its been steadily increasing revenue growth every quarter. qtr 4 '11 was the first time its had a positive gross revenue. It has the potential to be the first stock in its sector to be profitable.

    2) Its dirty cheap at the moment. 92 cents.
    3) If it ramps up sales and production, the company can be profitable in 2012.
    4) speculative stock = high risk high reward

    Disadvantages to owning:

    1) the company is burning through cash at a fast rate.
    2) It has 25 million in debt.
    3) It can be argued the technology is somewhat outdated.
    4) Cheap cost of natural gas makes replacing your heating source with fuel cells not a very fiscally smart idea at the moment. Waiting for nat gas to increase in price will cause fuel cells to be more in demand (yet i dont see nat gas prices increasing anytime soon due to supply issues)

    All in all I think this stock is a great play to throw in my IRA. BUT, i want someone elses opinion on this stock. Perhaps I'm absolutely nuts and this stock has no potential. I want to hear about it.


    DISCLAIMER: I am long 3000 shares @92 cents
     
  2. nitro

    nitro

  3. nkhoi

    nkhoi Moderator

  4. Looks like a good exercise in bottom picking. Not for me.
     
  5. I have played with FCEL once before and it worked out well for me. As I recall, I made $1000 on 1000 shares in a relatively short period of time. Maybe a year or two ago. However, I think you have to recognize FCEL is a gamble, not unlike putting it all on red in roulette. I certainly wouldn't tempt fate by doing it again but that's just me.