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The fuel cell industry has had its hiccups, but it is now steadily growing revenues. Four pure play fuel cell companies that I follow are Ballard Power (NASDAQ:BLDP), Hydrogenics (NASDAQ:HYGS), Fuel Cell Energy (NASDAQ:FCEL), and Plug Power (NASDAQ:PLUG). None of my following are profitable as of Q4 2011, but each holds its own potential. Analysts have projected Ballard Power to be the first profitable company with an EPS of $0.05 in 2013. As of FY2011, only Hydrogenics and Ballard Power had the economies of scale to sell products at positive gross profit margins with Hydrogenics leading the pack at 26% and Ballard following at 18%.

Since profits can only be projected at this point and dilution appears to be coming across the board, it is important to give Ballard Power management recognition. It is a company that has managed cash best when as compared to its peers in order to protect shareholders. Instead of using the market as an ATM as other sector companies of its market cap position have, Ballard has consistently navigated its business decisions to avoid dilution and maintain shareholder rights to future profits.

Observe the following tables in order to make your own judgment. Ballard Power has kept dilution around 1% while the industry average has been an average of around 30%. Though Ballard shares can be considered at a premium on a revenue per share basis, it has been the sure winner when considering revenue growth in comparison to shares outstanding.

Table 1 (3 Year Revenue Growth)

CompanyRevenue Q4 2009 (thousand)Revenue Q4 2010 (thousand)Revenue Q4 2011

(thousand)

BLDP46,72265,01976,009
HYGS18,84120,93023,832
FCEL88,01669,777122,570
PLUG12,29319,47327,629

Table 2 (3 Year Dilution)

CompanyNumber of Shares Q4 2009 (thousand)Number of Shares Q4 2010 (thousand)Number of Shares Q4 2011 (thousand)
BLDP83,63784,10284,148
HYGS3,6984,6906,180
FCEL72,39393,926124,498
PLUG12,91113,12322,676

Table 3 (Revenue per Share)

CompanyRevenue Per Share 2009Revenue Per Share 2010Revenue Per Share 2011
BLDP0.560.770.90
HYGS5.094.563.86
FCEL1.220.740.98
PLUG0.951.481.21

Table 4 (Dilution Rate)

Company2010 Dilution Percent2011 Dilution Percent
BLDP1%0%
HYGS27%32%
FCEL30%33%
PLUG2%75%

Source: Ballard's Management Deserves Recognition While Peers Are Diluting