This teaser and the solution were sent in by an alert reader (an anonymous Gumshoe, by his choice), so I’m just sharing and can’t take credit. The ad is from Daniel Denning, an Australia-based analyst selling the Australian Small Cap Investigator service. This looks to be aimed at Australian investors and most of my readers are in the US (though certainly not all), but it’s a global world — if the great investments are in Australia, let’s take a look there.

Here’s the key info from the ad, which essentially promises to supply the name of an Australian fuel cell pioneer in exchange for a subscription to the newsletter (which appears to be AU$199/year):

“a little-known Australian company is preparing to unleash a patented new technology… and single-handedly launch an enormously profitable and life-altering global revolution.”

300% gains are “virtually in the bag.”

The product this company is involved with is very rare so far … but the author says that’s about to change.

They provide a photo of a strange looking cabinet, and say that this “odd-looking Aussie invention could make you a 300% fortune – but only if you act in the next month.”

“Locked inside the cupboard is a way to make electricity by combining air and hydrogen… I call it a home power system. Officially, it’s a solid oxide fuel cell.”

Quotes are given from Governor Schwarzenegger and from the UK government that indicate that these kinds of fuel cells are the future — small power generators for the home.

And this Aussie company has apparently perfected one of these power generators for the home, and overcome the high temperature-related problems that these units can cause. According to the newsletter ad, “In a trading statement, the company announced that they are ‘now at an advanced stage of development, and moving swiftly towards commercialisation’.”

I’ll quote a little more from the ad to explain why these fuel cells are apparently more attractive than others:

“The newly developed Aussie fuel cell I’ve been talking about … is entirely different. These units require no billion dollar national power grid. They make power, right in your own home… and deliver it to wherever it’s needed in the house: radiators, lights, TV, computer, toaster… whatever… And they’re practical, too. They’re designed to fit into an existing domestic kitchen or utility room… they’re the size of a conventional dishwasher!”

In fact, Denning argues, these fuel cells also present a profit opportunity for the electricity companies. I’m not clear on how, but I didn’t read that closely.

So when Denning says, “If you buy just one fuel cell stock in the next five years, make it this one” … what company is he talking about?

Thanks to the Stock Gumshoe’s alert reader, we can share with you that this company is:

Ceramic Fuel Cells Limited (CFU in London and Australia, CEFLF.PK on the pink sheets).

Since I didn’t do the research on this one myself, other than to confirm that my reader’s surmise is accurate by checking a few of the facts (the price matches, and the photo given in the ad is identical to one provided on the company website at http://www.cfcl.com.au/Net_Gen/, among other confirming points), I can’t tell you much about it. So go forth and researchify, and let us know if you think this one is truly worth another look. Sounds like an interesting idea from the ad … but then again, they all sound interesting from the ad.

Best of luck. And thanks to my intrepid and anonymous reader for calling this one out.