more Baines on DemersThe battle of David and, er, David, goes on. This one's a few months old, but I hadn't seen it before. May I suggest that everyone on this BB (or at least those who actually hold shares) send WP investor relations a copy of the article prefaced with the question Baines suggests asking? I'll start.
Vancouver Sun
Wednesday, October 5, 2005
Page: D3
Section: Businessbc
Byline: David Baines
Column: David Baines
Source: Vancouver Sun
As Chinese President Hu Jintao entered the Burnaby facilities of fuel-cell company Ballard Power Systems, touted as the only corporate stop of his Canadian tour, three or four lone voices were reported as shouting "Falun Dafa is Good," referring to the religious movement that is much persecuted by Chinese authorities.
If the reporter listened a little closer, he might have heard me shouting "Ballard is a financial loser" -- a self-evident fact that not many people seem to have grasped.
In its latest edition, Canadian Business magazine praised Ballard and another "green" Vancouver company, Westport Innovations Inc., as companies that "have helped make the Greater Vancouver region a recognized brand in environmental technology."
The fact is, however, both companies are burning cash at a suffocating rate. During the six months ending June 30, Ballard generated $20 million US in revenues, but lost $62 million US, increasing its losses since inception to $725 million US.
The share price, meanwhile, has plunged from a high of $210 in March of 2000 to its current level of $6.69, making it the second-biggest stock bust (behind 360networks) in B.C. history. In my view, the Chinese president's visit isn't going to prevent this company from eventually slumping to penny-stock status.
Westport, which is also touting a China connection, has also been a loser. During the three months ended June 30, it generated $10.2 million from the sale of natural gas engines and parts, but its net loss was $6.2 million, raising cumulative losses to $218 million. The stock, which peaked at $23 in February 2000, is now trading at $1.40.
If I were a shareholder, I would be asking why I paid Westport chairman and CEO David Demers a salary of $325,000 during the year ended March 31, plus a bonus of $100,000, plus 44,248 free shares valued at $2.26 each, for total compensation of $525,000.