Pollution-Free Autos In 2004?
7 August 1998
Pollution-Free Autos In 2004? Hear How It Will Happen At Informed Investors Forum Aug. 8 In Seattle
SEATTLE--Aug. 6, 1998--Automobile pollution -- a creation of 20th Century technology -- could be largely eliminated in the 21st Century and few companies are more deeply involved in that effort than Ballard Power Systems and (TSE:BLD).
Ballard, based in Vancouver, B.C., is one of four companies presenting at the Informed Investors New Millennium Stocks Forum Saturday morning Aug. 8 at the Columbia Tower Club in Seattle. Ballard joins Wall Data , Medical Science Systems and INTERLINQ Software as presenters. Executives of each firm will give attendees full analyst-style presentations of their prospects plus answer questions.
"While Ballard is not yet well known to most U.S. investors -- only Morgan Stanley Dean Witter covers the company -- its reputation internationally is well established," said Steve Chanecka, president of Informed Investors, Inc., organizer of the Forum. "It is the clear leader in the development of proton exchange membrane fuel cell power systems.
"Ballard's current market cap is about $1.5 billion -- even though its shares are off about 50% from its highs and revenue for the first six months of this year was under $14 million (Canadian). It does have a strong balance sheet, though. At June 30, shareholders' equity in Canadian dollars totaled $634.4 million, including cash and short-term investments of $430.4 million," said Chanecka. "Investors apparently feel Ballard has potential to be the '800-pound gorilla' in its industry, like Amazon , America Online , Intel , Microsoft , Cisco , Dell , Yahoo , IBM , Pfizer , etc. are in theirs.
"The extensive report issued last week to the California Air Resources Board suggests strongly that Ballard will be a major player in the growing commitment by automobile manufacturers to produce virtually emission-free autos," Chanecka added.
The focus of Saturday's Forum is to help individual investors discover companies that will grow into the industry leaders and blue chips of the 21st Century. The keynote speaker is Michael Adams, First Vice President/Investment Officer at Dain Rauscher in Seattle. His talk is titled "How To Spot Winning Stocks Of The New Millennium."
The Forum runs from 8:45 a.m. to 12:30 p.m. The cost is $20 and includes a full breakfast. Audio tapes are available for $25 plus $3.95 shipping/handling. Call Informed Investors at 800/992-4683 or 916-448-8222 to register or order tapes. For information about Informed Investors, visit www.informedinvestors.com.
Individual investors are invited to hear Ballard's acting chief financial officer, Paul Lancaster, describe the technology that could help revolutionize auto transportation. Also, John Wall, founder and CEO, will present for Wall Data, Spencer Allen, CFO, will present for Medical Science Systems and Stephen Yount, CFO, will present for INTERLINQ.
According to a weighty report, "Status And Prospects Of Fuel Cells As Automobile Engines," issued on July 30 to the California Air Resources Board (www.arb.ca.gov), Ballard's technology, in addition to its business plan and strategic partnerships with Daimler-Benz and Ford , gives it a pivotal position to lead the effort toward developing a commercially viable zero emission engine that can compete with the internal combustion engine within a decade.
"The largest and most advanced integrated development effort -- the alliance of Ballard Power Systems, Daimler-Benz and Ford -- is aiming for a go/no-go decision on the investment in fuel cell manufacturing facilities by the end of 1999. A go-ahead decision will result in investments of approximately $1 billion and adoption of a schedule for production of thousands of engines by 2002, 40,000 per year by 2004 and about 100,000 per year by 2006," the report said.
Citing major investments by "organizations whose participation and leadership is essential if a commercially viable fuel cell electric engine is to emerge," the report's tenor is optimistic.
"As discussed in some detail in this report, past efforts have resulted in remarkable advances in almost every aspect of automotive fuel cell technology, but major steps are still ahead even for the most advanced programs. At this time, the most compelling argument for the Panel's cautious optimism about prospects for ultimate success is that the promise of fuel cells as an environmentally superior and more efficient automobile engine is being pursued with an unprecedented combination of resources by powerful organizations acting in their own interest and with strong public support. The Panel, therefore, considers the statements of several major automobile manufacturers -- that they expect to have production-ready fuel cell electric vehicles by the year 2004 -- as bona fide expressions of automakers' confidence in their plans."
In the section entitled "Fuel Cell Technology Developers," the report discussed the Panel's inquiries into business strategies of major companies involved in the efforts to develop proton exchange membrane (PEM) fuel cell development. It gave Ballard high marks not only for its technology, but also its business approach and strategy.
"BPS stands out ... the senior technical and business management of BPS provided the most definitive information on their business plans, the scope of these plans is the most comprehensive, and the capabilities and resources being committed by BPS and its allies (Daimler-Benz and Ford) are the most extensive among PEM fuel cell developers."
In a press release issued by the Air Resources Board summarizing the report, Chairman John Dunlap said, "Fuel cell development has exceeded all expectations, and we now expect introduction of fuel cell engines in the first half of the next decade. We are confident that it will lead to a viable alternative to complement the increasingly cleaner vehicle fleet."
In addition to partnerships with Daimler-Benz and Ford, Ballard supplies fuel cells to General Motors , Chrysler , Nissan , Hitachi , Honda , Mazda, Volkswagen, Volvo , Matsushita Electric Works , GPU International , ALSTOM, EBARA, and Cinergy .
Since 1993, Sacramento, Calif.-based Informed Investors has been linking investors with management of public companies with particular strength in technology and biotechnology. Informed Investors represents individual investors who collectively hold an estimated $2 billion in investable assets.
