ITM Power Plc (ITMPF)

[Gerry321]

Will ITM outlast Hydrogenics through the credit crunch?
Hydrogenics are a potential competitor to ITM for hydrogen generators
In the first half of 2008 HYDG had $29.8m in cash and losses of $8.3m suggesting a 2008 year end position of $23m to $25m cash and losses of $14m to $16m at best
At this rate of cash burn HYDG have under 2yrs to turn the business around
Their gross margins are in the region of 25% to 30%
At £1=$1.80
ITM for the 12m to April 2008 had losses of $7.2m and cash of $48.4m suggesting a 2008 year end position of $42m to $44m cash and losses of $5m to $6m at best

At this rate of cash burn ITM have at least 5yrs to turn the business around
However if they sell H2 generators at 80% of the price of Hydrogenics on a like for like technical specification
Then because of their low cost electrolyzer design
ITM can make around 50% to 100% gross margin
So really they are in much better shape to survive any credit squeeze in the next 2 or 3 yrs