Publication date: 23-October-2003 
Source: http://www.renewableenergystocks.com/

These comments are on a purely technical basis (non-emotional) and are intended only as a rough guide for an investor who wishes to protect his capital and not get caught up in the emotional nature of speculative stocks. These are not recommendations, only suggestions that should be considered in light of each individual's tolerance for risk.

General Rule of Thumb for Conservative Investors.

Sell ½ of a position every time it doubles.

For example, if you bought FCEL at $7, you should sell ½ of your position at $14.  If FCEL goes to 28, you would sell half of your remaining balance, and so on.  In this manner, you protect your principal, but still participate in any additional longer term upside price appreciation.

Fuel Cell Energy, Inc. - FCEL
Current Status

Stock has run up from a substantial base in the $8 to $10 area and has made two recent attempts to break the $14 barrier.  The most recent move taking the stock over $15, ($15.44 high) on very heavy volume (a good sign).

The top of the FCEL's 10-week trading range is approximately $16.  Given the distance the stock has moved in recent weeks, it would appear that $16 would be an upper limit on the current move upward.

The stock will need time to consolidate its recent gains (no stock goes straight up for long).  Before it makes another significant move upward.  In any general market weakness, the stock could easily correct to the $13 to $13.5 area.

Current Technical Stops - FCEL

These points are designed to keep you in the stock for the long-term, but prevent you from staying in a stock too long, if significant technical supports are broken.

   1. Sell ½ of position if stock trades below $12.5
   2. Sell the balance of position if stock trades below $9.00 

Stock has finally broken above a substantial base in the $4.50 to $5 area that had been forming since the summer of 2002.  The stock made 5 previous attempts to break through the $5 barrier and finally did so on October 7th, when the stock closed above $5.50 ($5.69).  The most recent move has taken the stock over $7, ($7.27 high) on significantly above average volume (a good sign).

The top of the stocks 10 week trading range is approximately $6.50, so the stock is a little overextended.  Given the distance the stock has moved in recent weeks ($5 to $7 or 40%), it appears that $7.50 would be the technical upper limit on this latest move.  In all probability, the stock would correct to the area of $5.5 in order to consolidate before its next upward move.

Earlier this week, the relative strength of the stock turned positive.  This is a very positive long-term (greater than a year) technical improvement.

Current Technical Stops - HYGS

These points are designed to keep you in the stock for the long-term, but prevent you from staying in too long, if significant technical supports are broken.

   1. Sell ½ of position if stock trades below $4.75
   2. Sell the balance of position if stock trades below $4 

Current Status

Stock has broken above a base in the $2.50 to $3 area that had been forming since fall of 2002.  The stock had a sharp run up ($2.50 to $5.00) in February of this year.  The stock came back to support in the $3.00 range and proceeded to build a base in the $3.00 to $3.25 area.  The most recent move has taken the stock over $4.25, ($4.47 high on October 15th) on above average volume (a good sign).

The top of the stocks 10 week trading range is approximately $4.75, so the stock is not over extended at this level.  The stock appears to be consolidating its recent gains within a normal trading range.  The only problem with HHO appears to be the lack of consistent volume, probably due to the fact that it trades on the Toronto Exchange.

Current Technical Stops - HHO-T

These points are designed to keep you in the stock for the long term, but prevent you from staying into long, if significant technical supports are broken.

   1. Sell ½ of position if stock trades below $3.25
   2. Sell the balance of position if stock trades below $3

J. Peter Lynch

Investors can also read our Renewable Energy Stock Watch: 

http://www.investorideas.com/Companies/RenewableEnergy/Stocks/StockWatchList.asp

Renewableenergystocks.com offers investors research, news and company links within the renewable energy sector.  To compliment this site, we also feature http://www.fuelcellcarnews.com/to meet the interest in fuel cell technology and the participating public and private companies.  The Renewable Energy Stocks section is broken down by industry category to include:  Fuel Cell stocks, Flywheel stocks, Micro -Turbine Stocks, Photovoltaic Stocks, Wind Power Stocks, and Recycling Stocks. 

The site http://www.renewableenergystocks.com/also features a live industry news feed provided by 

http://www.alternate-energy.net/. 

Mr. J. Peter Lynch, Solar Energy/Renewable Energy Guest Columnist 

Mr. Lynch has over 25 years experience working as an investment banker with start up and development stage companies in the technology, computer and medical fields.  In addition, he has worked for 25 years as an independent securities analyst in small emerging technology companies with a primary focus on alternative energy and has served as a contributing editor for the past 15 years to the Photovoltaic Insider Report, a leading alternative energy publication primarily directed at industry. 

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