Wednesday, February 14, 2007

Beltway Bet: FuelCell Energy

WASHINGTON, D.C. -Seven years ago, with California sweating through rolling electricity blackouts, the stock market worked up an appetite for outfits selling new ways of generating power. Shares of FuelCell Energy, a company in that business, spiked to a split-adjusted $54. Their recent price? $7, down 52% from a 52-week high.
Matters of energy and environment have hardly dropped out of the headlines, but the market's enthusiasm for eco-stocks tends these days more to biofuels and solar power. SunPower, in the latter business, trades just 5% off a 52-week high of $48 and at a relatively rich 13 times its revenues.
For investors looking at long-term energy plays, don't rule out FuelCell Energy. The federal government certainly hasn't.