Progressive Investor Sample Article

Vestas/ NEG Merger; Stocks for an Accelerating Economy

Issue 13: December, 2003

SB20 News

(Companies on our SB20 Stock list)

FuelCell Energy (FCEL), a leading manufacturer of stationary fuel cell power plants for distributed generation, reported 2003 fourth quarter and year-end results that were in line with expectations. FCEL received fewer research and development contracts resulting in lower revenue for the quarter ($7.3 million compared to $13.7 million the previous year), even though product sales were up. Revenue for the fiscal year was $33.8 million, compared to $41.2 million for the previous fiscal year even though product sales increased from 7.7 million in 2002 to $16.1 million in 2003.

Jerry Leitman CEO spoke of FCEL's progress: "We made significant progress on our 2003 focus areas, including delivering products to customer sites, generating additional orders, strengthening our distribution partner network, and adding to our high temperature fuel cell expertise with the award of the $139 million SECA contract and acquisition of Global Thermoelectric."

Green Mountain Coffee Roasters (GMCR) announced fourth quarter sales rose 27.1% and net income rose nearly 46%, beating analysts' expectations. Sales grew most in supermarkets, due to shipments Wild Oats and Costco.

Quantum (QTWW) was a runner-up for the SB20 and is the leading manufacturer of hydrogen tanks for fuel cell vehicles. QTWW reported an increase in revenues of 19.6% ($6.7 million) for the second quarter of fiscal year 2004. This is the third consecutive quarter its Fuel Cell Systems operating division achieved profitability. Revenues increased by 43.1% for the six month period. CEO Alan Niedzwiecki said their gross margins improved to a record 40% and their Alternative Fuels segment is also close to being profitable. The company also strengthened the balance sheet with a recently completed equity offering.

Moody's Investors Service is reviewing Whole Foods Market's (WFMI) ratings for an upgrade. Moody's says the upgrade is prompted by the WFMI's strong performance; it's been financing its ambitious expansion internally; strong sales growth; and continued improvement in debt protection measures.

Wainwright Bank (WAIN) is included in the America's Community Bankers NASDAQ Index, launched earlier this month. The purpose of the index is to draw attention to community banking, an often overlooked financial sector. The index outperformed the S&P for most of the past 15 years when back-tested. WAIN's stock gained 29.3% in 2002, and is at an all-time high.

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