DESC

[ScottishTrader]

A heads up to all interested - any bets on whether it will be positive or negatively revieved???

Distributed Energy Systems Schedules Conference Call To Discuss Third Quarter Results

WALLINGFORD, Conn., Oct. 20 /PRNewswire-FirstCall/ -- Distributed Energy Systems Corp. (Nasdaq: DESC - News) announced that it will release its results for the third quarter ended September 30, 2005 on Monday, November 7, 2005. The company will also host a conference call on the day of the release at 11:00 a.m. Eastern Time.
ADVERTISEMENT

Individuals wishing to participate in the conference call should dial (866) 578-5801 or for international calls (617) 213-8058. The call will also be broadcast live over the Internet, and can be accessed by all interested parties at www.vcall.com or through the investors' section of the Distributed Energy Systems website at www.distributed-energy.com.

[logocovet]

My science on fuel cells is limited (saw a PBS documentary once), but my understanding is that the biggest obstacle to developing a fuel cell car is how to obtain the hydrogen.  This is an article about an Israeli company that has developed a practical fuel cell car:  I believe this development shows that fuel cell technology can be practical:  The market has noticed. 

http://www.isracast.com/tech_news/231005_tech.htm

THE CAR THAT MAKES ITS OWN FUEL
A unique system that can produce Hydrogen inside a car using common metals such as Magnesium and Aluminum was developed by an Israeli company. The system solves all of the obstacles associated with the manufacturing, transporting and storing of hydrogen to be used in cars. When it becomes commercial in a few years time, the system will be incorporated into cars that will cost about the same as existing conventional cars to run, and will be completely emission free.


Illustration photo – the car in this image is not related to the story. Actual pictures of Engineuity's system are classified at this stage.
(Image credit: Ford)

As President Bush urges Americans to cut back on the use of oil in wake of the recent surge in prices, more and more people are looking for more viable alternatives to the use of petroleum as the main fuel for the automotive industry. IsraCast recently covered the idea developed at the Weizmann Institute to use pure Zinc to produce Hydrogen using solar power. Now, a different solution has been developed by an Israeli company called Engineuity. Amnon Yogev, one of the two founders of Engineuity, and a retired Professor of the Weizmann Institute, suggested a method for producing a continuous flow of Hydrogen and steam under full pressure inside a car. This method could also be used for producing hydrogen for fuel cells and other applications requiring hydrogen and/or steam.

The Hydrogen car Engineuity is working on will use metals such as Magnesium or Aluminum which will come in the form of a long coil. The gas tank in conventional vehicles will be replaced by a device called a Metal-Steam combustor that will separate Hydrogen out of heated water. The basic idea behind the technology is relatively simple: the tip of the metal coil is inserted into the Metal-Steam combustor together with water where it will be heated to very high temperatures. The metal atoms will bond to the Oxygen from the water, creating metal oxide. As a result, the Hydrogen molecules are free, and will be sent into the engine alongside the steam.
The solid waste product of the process, in the form of metal oxide, will later be collected in the fuel station and recycled for further use by the metal industry.

Refuelling the car based on this technology will also be remarkably simple. The vehicle will contain a mechanism for rolling the metal wire into a coil during the process of fuelling and the spent metal oxide, which was produced in the previous phase, will be collected from the car by vacuum suction.



Click to enlarge

Beside the obvious advantages of the system, such as the inexpensive and abundant fuel, the production of Hydrogen on-the-go and the zero emission engine, the system is also more efficient than other Hydrogen solutions. The main reason for this is the improved usage of heat (steam) inside the system that brings that overall performance level of the vehicle to that of a conventional car. In an interview, Professor Yogev told IsraCast that a car based on Engineuity's system will be able to travel about the same distance between refueling as an equivalent conventional car. The only minor drawback, which also limits the choice of possible metal fuel sources, is the weight of the coil. In order for the Hydrogen car to be able to travel as far as a conventional car it needs a metal coil three-times heavier than an equivalent petrol tank. Although this sound like a lot in most cars this will add up to about 100kg (220 pounds) and should not affect the performance of the car.

Engineuity is currently in the advanced stages of the incubator program of the Chief Scientist in Israel, and is seeking investors that will allow it to develop a full scale prototype. Given the proper investment the company should be able to develop the prototype in about three years. The move to Hydrogen based cars using Engineuity's technology will require only relatively minor changes from the car manufacturer's point of view. Since the modified engine can be produced using existing production lines, removing the need for investment in new infrastructures (the cost of which is estimated at billions of dollars), the new Hydrogen cars would not be more expensive. Although Engineuity's Hydrogen car will not be very different from existing conventional cars, the company is not currently planning an upgrade kit for existing cars but is concentrating on building a system that will be incorporated into new car models.

Possibly the most appealing aspect of the system is the running cost. According to Yogev, the overall running cost of the system should be equal to that of conventional cars today. Given the expected surge in oil prices in the near future Engineuity's Hydrogen car could not come too soon. [/b]

[cumulina]

Hi, logocovet.

I think it's more a problem of storage and transportation/distribution that is the problem
with that kind of fuel.

Here is the danish version of storage of the fuel:

http://www.amminex.com/index.htm

The danish government is going to weep if people no longer buys gasoline. 1 (That is ONE) liter of gasoline costs here DKK 10,- This comes out to $US 1.6205 pr. liter... Been that way for years...
Hurray for taxation...pays (amongst other things) for the good roadsystem that we can't afford to drive on...
But everything is taxable, so I trust they'll come up with something.


When I cheer higher oilprices, it's because that will speed up the development of alternative energyforms.

[logocovet]

Thanks Cumulina,

I do recall something in the documentary about the dificulties of storing hydrogen.  I believe that the alternative energy movement is much bigger in Europe than it is in the US.  (What can U exect from a president who doesn't believe in global warming or evolution) 

But oddly enough, Bush is very pro fuel cell technology, although for the wrong reasons.  Bush is unwilling to introduce strictly fuel efficiency/emission standards b/c of his buddies in the oil industry.  Instead he supports "totally clean" energy like fuel cells knowing that they are not a practical reality yet.  It is his red herring.  (Solar is very small in the US).  I guess, in an odd way, this puts Bush in the alternative energy movement.

Back to DESC.  I've heard many times said that DESC is considered best of breed.  Can anyone explain why DESC is different or better than the other alternative energy companies ?(FCEL, PLUG, Ballard, ENER, etc).  Thanks.

[stout7735]

DESC deserves a fresh analysis...May move up next week...

[ScottishTrader]

ok I'll give you my thoughts on DESC, as it is one that I have followed for a little while, and have traded a couple times - once for a good profit, and once for a loss, after seeing a big profit on the last run-up.

DESC is still clearly in a bullish trend - one look at the chart tells you that, rising from the low 3s to over $8 where it now stands since June, within that trend, we have seen 2 clear ascending trendlines - the initial trendline (TL1) that lasted until mid-august, was replaced by a steeper one (TL2) that held until early October, when DESC pu in its recent high of 8.88.

Unfortunately, this trendline couldn't hold (and I got burned on it) - after printing this high, it pulled back below this trendline and key support at 7.50.  However, TL1 did hold and continues to do so - in fact, the recent move since rebounding off TL1 has ranged between it and TL2, now upper resistance.

Having consolidated this week aroound 8.00, DESC put in a nice solid marobozu on Friday, suggesting it wants to go higher.  I'm not sure TL2 will break though, and it may climb up the underside of it until it pushes recent highs at 8.88.  A word of caution though, what we may have developing is an anscending or symmetric triangle, as it pushes towards new highs - I would look for it to rebound back to TL1 at some point in the near future before breaking 8.88.  The chart is very bullish though, and I wouldn't be surprised to see that eventual breakout, but I think there will be better entry points than buying in on Monday morning.  If we do indeed have an ascending triangle forming, it would give a technical breakout target of around 12.30, which would be veery nice

As many have said on this thread, DESC is considered "best in breed".  Simply comapring its chart with other AE plays such as CPST and BCON, demonstrates why this is so - when the AE bubble burst in September, and these stocks took a tumble back to their starting points, DESC just kept on going.  I see that as a very good sign, and an indication of higher prices to come.  DESC should eb at least a $10 stock by Christmas, at least in my opinion.

Any other thoughts are most welcome.

The Scotsman

[cumulina]

So quiet here - if nobody else will, then I shall be happy to post it:




Distributed Energy Reports Record Revenues of $12.3 Million, Sharply Reduced Net Loss in 3rd Quarter

November 07, 2005 08:01:52 (ET)


WALLINGFORD, Conn., Nov 07, 2005 /PRNewswire-FirstCall via COMTEX/ -- Distributed Energy Systems Corp. (DESC, Trade) reported today that revenues rose to a record $12.3 million for the third quarter ended September 30, 2005, compared with $4.8 million in the same period one year ago. The company sharply reduced its third quarter net loss to $3,587,000, or $0.10 per share, from $5,780,000, or $0.16 per share, during the same period in 2004.

Third-quarter results primarily reflect strong performance at Northern Power Systems, where revenue growth derived largely from power installations for building and industrial applications. In addition, due to sufficient and positive warranty experience, Proton Energy Systems recognized $1.6 million in previously deferred revenue during the quarter from the sale of the mid-sized HOGEN(R) S Series hydrogen generators.

Through nine months of 2005, Distributed Energy Systems had revenue of $33.9 million, and a net loss of $12.8 million, or $0.36 per share. One year ago, the company reported nine-month revenue of $11.1 million, and a net loss of $18.4 million, or $0.52 per share.

Northern Power and Proton Energy merged to form Distributed Energy Systems in late 2003. The combined company provides industrial and commercial markets with products and services offering greater control over the supply and cost of power, as well as increased efficiency and reliability.

"We made solid progress in the third quarter toward every one of our objectives," said Walter W. (Chip) Schroeder, president of Distributed Energy Systems. "Revenues at Northern Power continue to grow, reflecting the strong position of our engineering, procurement and construction (EPC) business in the remote and on-grid distributed power segments. Northern's current year-to- date revenues are more than 250% above the comparable period one year ago." He also noted successful progress on signing long-term contracts for Northern Power's PowerAdvantage(TM) operations and maintenance program for distributed generation facilities.

Mr. Schroeder commented on Proton Energy as follows: "There was notable progress at Proton, where we began to see early shipment and order progress from distributor agreements we signed with Airgas, Praxair and Linde earlier in the year."

"These distribution partners tell us that order flow is a function of not only the compelling value of Proton products, but also because of the volatile condition of today's hydrogen supply market," Mr. Schroeder continued. "End users are taking a fresh look at onsite hydrogen generation as an alternative to truck-delivered supplies, and they like the idea of gaining more control over their hydrogen resources."

Mr. Schroeder noted the increased demand and the "value proposition" of the use of onsite hydrogen for electric generator cooling, where the savings to the plant owner typically result in a payback of less than a year. He pointed out that this enables Proton to sell its large HOGEN H Series systems at better margins and into this and other markets, where the company is seeing promising product line acceptance.

"On the financial front," Mr. Schroeder stated, "we moved closer to breakeven," emphasizing the sharp reduction in the third quarter's net loss. "This is our best bottom line since the merger of Northern Power and Proton Energy," he said, "and our improved results also demonstrate the positive effects of remaining focused on the goal of becoming profitable within our existing capital resources."

DESC reported that the company's gross margins were positive for the fourth consecutive quarter. In addition, cash and marketable securities as of September 30, 2005, were $42.7 million compared with $45.8 million as of June 30, 2005. The change primarily reflects the net loss for the quarter, with working capital requirements remaining essentially unchanged. The company defines working capital as current assets minus current liabilities excluding cash and marketable securities.

3rd Quarter Highlights:

Distributed Energy Systems noted several major developments since the regular August 5th investor conference call, including:


-- An agreement with Linde Gas to distribute Proton's HOGEN hydrogen 
       generators in the United States, Mexico and the Caribbean. 
    -- A $2.05 million contract for Northern Power to design and install 
       independent remote power systems for three offshore natural gas 
       drilling platforms in the Gulf of Mexico for Construcciones Mecanicas 
       Monclova S.A. de C.V. 
    -- A contract for Northern Power to provide two TelePrime(TM) power 
       systems for the Sakhalin-II Pipeline project on Russia's Sakhalin 
       Island. The contract valued at $1.5 million, brings Northern Power's 
       total contractual involvement in Sakhalin oil and gas development 
       projects to more than $6 million. 
    -- Announced the promotion of Darren Jamison to president of the Northern 
       Power Systems subsidiary. 
    -- The purchase by Northern Power of a $1.5 million, 110,000 square-foot 
       manufacturing and engineering facility in Barre, VT, to improve 
       production efficiencies. 
    -- An increase in original contract award from the Anchorage-based Alaska 
       Village Electric Cooperative for Northern Power to install three 
       additional NorthWind 100(R) wind turbines, including remote monitoring 
       and controls valued at $1.8 million. 
    -- Announced a multi-million dollar agreement to provide PowerAdvantage 
       O&M service to former DTE Energy distributed generation customers. 
    Outlook: 
"Developments such as these -- together with the momentum from customers who see the need to think smarter and differently about their electric power priorities -- continue to bolster our optimism," Mr. Schroeder concluded. "We are in the right business at the right time, now and for the foreseeable future, and we believe our operational improvements should enable us to report continuing progress over the next several quarters."

[REALDEALS21]

Its now in the double figures !! Cramers LIKES it !! It has exposure to solar enery and it will be profitable before than it is expected !! Thats tremendoues growth !!

[fous]

Man this price action is in a nice lookin bullish uptrend. Would have been great for a longer term trade.

DESC's price action has 2 ascending triangles.

-Triangle 1 is in the works as we speak with a technical target 9.93

-Triangle 2 just made its confirmation today that it is indeed an ascending triangle, just barley making a breakout to close today at 8.94 above the prior peak at 8.88. Guess we will see tomorrow if this is a confirmed breakout. Target for the break of Triangle 2 is 11.18

Volume needs to begin increasing for the uptrend to continue, It has been decreasing since this uptrend began. Usually when the volume decreases as price action continues to increase, it is a sign that the uptrend is losing interest and running out of steam. And all uptrends eventually run out of steam sad enough  . But those are some beautiful twin triangles on DESC's chart. An increase in volume is going to be key in the continuation of this trend.

Good luck to everyone holding.

-fousc

[ScottishTrader]

But trading at 9.90 AH - if it holds that it should be crazy tomorrow!!!

[Terliso]

Hey guys, i think we missed something here .... the CUP with HANDLE has formed this should have been a great play since the beginning of the breakout.. i just noticed that today   Anyway. i think desc will fly tomorrow

[cumulina]

Great charts, great action! 

Something that might "keep the kettle boiling" might be this conference:

NYSSA Presents 3rd Annual Alternative Energy Industry Conference
- BusinessWire

NEW YORK, Nov 02, 2005 (BUSINESS WIRE) -- The New York Society of Security Analysts (NYSSA) will present the 3rd Annual Alternative Energy Industry Conference on November 29, 2005.

The total clean-energy market is predicted to grow to $92 billion by 2013, about seven times its current size of $13 billion. Is now the time to invest? Don't miss this opportunity to meet the CEOs, CFOs, and other senior executives from public companies that range from the world leaders in fuel cell technology to up-and-coming players in the areas of solar and geothermal power.

The following companies are presenting:

American Superconductor Corporation ; Ballard Power Systems ; DayStar Technologies, Inc. ; Distributed Energy Systems Corp. ; Energy Conversion Devices, Inc. ; FuelCell Energy, Inc. ; Intermagnetics ; MTI (Mechanical Technology, Inc.) ; Plug Power Inc. ; SatCon Technology Corporation ; and U.S. Geothermal, Inc. .

The conference will be held on November 29, 2005, 8:00 a.m. to 5:10 p.m., at the Harvard Club, 27 West 44th Street, New York, NY. Early registration by November 8, $195 NYSSA members, $295 nonmembers. Prices $70 higher after November 8. Registration deadline is November 22. No charge for press with credentials. A complete agenda is available at http://www.nyssa.org/Template.cfm?Section=calendar&template=/ ContentManagement/ContentDisplay.cfm&ContentID=6065


I think we might have to keep an eye on all those companys! 

Surely they're not going there to have a beer and a chat...Could they save something special to show?
I have been keeping a bit of an eye on MKTY, it has been behaving strangely, and have had nice insider-buys...Hmmm...

Looking forward to todays action on DESC ... And VERY much also ENER, they have C/C today. 

[logocovet]

Has everyone seen how many AE commercials there are on TV now?  Every car and oil company has a comercial with green grass and blue skys and a bunch of pastel colors.  Even ADM is producing bio fuel. 

The American car companies have especially jumped on the wagon since they need to change their image from SUV's to hybrid, environmentally friendly cars.    ALot of Ford and GM commecials.

The talking heads have been talking about AE too.  Cramer just recommended DESC  on Friday:

"The "best little alternative energy company you have never herd of ," is Distributed Energy Systems (DESC) according to Cramer. Two big trends are helping this company:

   1. Distributed power
   2. On-site hydrogen power generation

Hurricanes have pushed people toward a reliable source of power. Also economics are making on-site hydrogen power systems more desirable. The company also has exposure to solar and wind power.
The economics of the company Cramer mentioned were a better than expected revenu of $12.3 million vs. expected $9 million. 2% better than expected gross margin also.
Cramer said, "This is not going to be the last good quarter. It is the first great one!"

I think it is the first time he "infomercialed" a stock under $10.  DESC was originally on his under $10 portfolio. 

Good luck all! 

[Terliso]

I firmly believe DESC will continue pushing higher in the coming days & weeks.. there is no doubt about that..just look on the chart 

[Terliso]

DESC