Stephen Leeb: Fired up Over Fuel Cells
09/05/2002 12:00 am EST
A regular feature of the highly-popular and respected newsletter, Personal Finance, is its high-stakes investing section, in which editor Stephen Leeb focuses on speculative stocks with above-average risks. Included among these high-stakes picks are several companies poised to benefit from the emerging market for fuel-cell technology as a long-term alternative fuel source.
“American’s energy crisis is far from behind us and one group that has held firm in the nearly unrelenting bear market is energy stocks. While the poor market may have exposed economic sore spots such as the consumer debt burden and overcapacity in the tech sector, it’s also made it clear that energy prices are in a long-term up-trend and that investments leveraged to this up-trend should remain very strong relative performers.
Most of the US’ power needs are satisfied by traditional fossil fuels – namely oil and natural gas – and with domestic stocks of these commodities dwindling, most of the new drilling and exploration sites are in remote parts of the world. The answer to this problem is alternative energies and among the most promising possibilities are fuel cells.
Fuel cells don’t work without catalysts and the only effective catalyst found to date are platinum group metals. London–based Johnson Matthey (
Perhaps our riskiest play in the alternative fuel sector, but one that could hand us outsized gains, is high-stakes pick FuelCell Energy (
In addition to the stocks above - which are speculative, high-stakes picks, Leeb also offers two additional ways to benefit from fuel-cell technology:
“Ballard Power (
Perhaps the most hedged way to play fuel cells, however, is with IdaCorp (