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Question: Even though it might be risky, I want to invest in fuel cells. I don't understand how they work, but can you tell me about UTC and FuelCell Energy?

A BuyandHolder

Answer:

Dear BuyandHolder,

I cannot tell you whether or not you should invest in specific stocks as I don't know what your portfolio consists of, what your income is, what assets you own and other facts required to dispense specific investment advice. However, I can give you some general information to keep in mind.

Regarding the industry...

In January, the Bush administration said it would spend $1.7 billion so that hydrogen fuel-cell cars will be on the road within a generation. (A hydrogen fuel cell combines hydrogen and oxygen to produce electricity.)

Knowing the facts...

Before you invest in an unknown, I urge you to play Joe Friday and get some of the facts. It's not wise to invest in something you don't understand. Log on to Ballard's site (www.ballard.com). Ballard already has a portable fuel cell generator available for use indoors. About the size of an air conditioner, it can power a small house. The site has an excellent explanation of how fuel cells work.

Your two questions...

UTC Fuel Cells is a division of the huge Hartford-based conglomerate, United Technologies Corp (NYSE:UTX; $73.73). In addition to UTC, United Technologies' other major divisions include: Otis Elevators, Carrier, Pratt & Whitney and Flight Systems. UTC currently has 250 fuel cell power plants in operation. The stock's 52 week high/low is: $74.25/$48.83. Its total debt to equity: 0.54.

FuelCell Energy, Inc., (Nasdaq:FCEL; $8.07), a smaller company, makes similar fuel cells although its generators can also run on natural gas. It is based in Danbury, CT. The 52-week high/low is: $10.06/$4.54. Total debt to equity: 0.01.

Bottom line...

Before you add fuel cell stocks (or any stock) to your portfolio, read the analysts' coverage in Value Line Investment Survey, a weekly independent research publication available at most public libraries.

Good luck!

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