Ballard Power, the Comeback Kid?
Wednesday, May 04, 2011
Is the time ripe for Ballard Power Systems Inc. (BLD:TSX, BLDP:Nasdaq) to post a major comeback? Ballard management always said that they were a long way off from maturity but now might be the time to go big in Ballard. With the stock under $2, the recent news by Germany might just kick start the fuel cell market:
1. Germany is shutting down all nuclear reactors by 2022, for sure. http://online.wsj.com/article/BT-CO-20110603-707791.html
2. Germany is the largest economy in Europe and the fourth largest in the world, that's right FOURTH largest in the world! For them to exit nuclear is almost like the US, China or Japan saying it.
3. The domino effect. Other nuclear nations in Europe or around the world will follow suit. Watch for Japan next and the US interest to come back.
4. Wind power comes with it's own problems of unsightly giant turbines, which are also loud. Solar will not meet power demand. The only short term option is natural gas, coal or now fuel cells. Coal won't happen, NG will but the sleeper has been Ballard fuel cells.
5. Ballard distributed power solution; Chemical companies produce excess byproduct hydrogen which can be utilized. http://www.ballard.com/files/pdf/Case_Studies/DPG_FCgen_Germany.pdf
6. Ballard residential cogeneration. Perfected with Ebara of Japan, Ballard has a JV with a German company, "The FCgen-1030 is successfully powering residential cogeneration systems in Europe, through deployment by BAXI INNOTECH GmbH, as part of the German Callux Program." http://www.ballard.com/Stationary_Power/Cogeneration_Fuel_Cells/Application_Overview.htm
7. Lead Customers; http://www.ballard.com/About_Ballard/Industry_Relations/Lead_Customers.htm
8. Heavy vehicles. Batteries are fine for cars but no buses or other heavy vehicles. I think only a matter of time before Tata Motors of India will look to fuel cells for it's buses. That will be a massive market opp.
Just a quick note, but I will follow up later. The buying interest should be back soon and Ballard is CHEAP. Long term hold but looking for a pop this year. Life is short, eternity is everlasting. Always do your own DD and invest accordingly.