In the ever-
expanding move to
help our dear Mother
Earth take a load off,
our new (very PC)
fascination is with
environment-friendly
cars. The push makes
sense—  not only in an
effort to preserve the
ozone layer, but also
to deny funds to the evil Middle Eastern oil empire—  but will
mainstream consumers really buy it?        The trend started just a few years ago
when we began spotting small, bug-like
vehicles cruising the highways. After the
initial double take, these weird hybrid
cars became much more appealing when
we discovered that they were not only
eco-friendly but got excellent gas mileage
as well. Nothing like killing two birds with
one stone. Since its mainstream introduc-
tion in 1997, the Toyota Prius hybrid has
sold over 120,000 vehicles worldwide,
and company president Fujio Cho recent-
ly announced his goal to sell 76,000 more
in the coming year. Bush’s baby Enter the next wave of the clean-air car crusade—  the hydrogen (fuel cell) car.
Recently championed by President Bush’s
US$1.7 billion FreedomCar and Fuel
Initiative, a five-year federally funded
project to develop hydrogen-powered fuel
cells, hydrogen cars will be vying for the
top spot in gas engine alternatives in the
coming years. Many experts are touting
hydrogen fuel cells as the replacement for
diesel, petroleum and natural gas over
the next 20 or so years.        GM announced in October that they
aim to sell one million fuel-cell cars by
2020, claiming that they will make hybrids
obsolete. And the company is currently
pumping 25% of their R&D into fuel-cell
technology development. GM will break
into the market with their HydroGen3 (H3), a hydrogen-powered minivan, which
was approved in March to become the
first-ever fuel-cell vehicle permitted to
drive in Japan. And they recently passed
safety and emissions inspections in
Washington, D.C.        Nevertheless, I must regretfully burst
the fairy-tale hydrogen bubble. One of the
main problems, as anyone who has taken
Chemistry 101 can tell you, is that hydro-
gen in its natural state is found in chemi-
cal compounds, not as a gas. Converting
it to a gas is a lengthy and pricey process.
And then you have to liquefy the gas for
storage—  again expensive. Profit potential Here’s where we can move in and take profits on the fuel-cell phenomenon. This
company has devised an innovative sys-
tem for converting natural gas into hydro-
gen. Because natural gas gridlines are
already in place around the country, gas
stations could in the future sell hydrogen
for cars as easily as gasoline.        The company is Plug Power
(PLUG:NASDAQ), an innovator in fuel-cell
applications. Plug recently announced the
creation of GenSite, a product line that
operates on natural gas to provide
99.95% pure compressed hydrogen gas.
This is a huge first step in the direction of
commercially viable hydrogen-powered
vehicles.        Plug’s price has bounced all around
the chart for the past few years, hitting a
high of US$130 in February 2000. After a
huge selloff and a roller coaster of ups
and downs, Plug is currently pricing
around the US$5.75 mark. This is our
opportunity to buy while it’s cheap and
ride the upward wave.        Over the next few years, hybrid and
fuel-cell cars will become more the norm
and not the redheaded stepchild of the
automotive family.        Buy shares of PLUG under US$7.00.
This is one to stick in your back pocket
for a while. 12 Hotline: 410 528 8228 TAIPAN Publisher:
J. Christoph Amberger Editors:    Christian DeHaemer,
Brian Hicks, Siu-Yee Ng,
Briton L. Ryle, Adam T. Lass,
Bryan Bottarelli, Ian Cooper,
William Colburn, Martin
Denholm, Ann Sosnowski
Erin Beale Managing Editor:
Ned Humphrey Art:   Elliana Brocato Fulfillment:   Alex Ferguson Tours and Conferences:
Barbara Perriello Customer Care:
Call (508) 368-7498
9 A.M.  to 5 P.M.  Eastern Time Email:
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maxim of Caveat Emptor applies—
let the buyer beware! Taipan does not provide individual investment advice, or act as an
investment advisor, or individually
advocate the purchase or sale of
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T  #123384745 TAIPAN www.taipanonline.com Buy while it’s cell-ing cheap and
drive away with profits Erin Beale