$12.43
-0.24 (-1.89%)
Clean Energy Fuels Corp. (CLNE)
CAPS Rating:
Provider of natural gas as an alternative fuel for vehicle fleets in the United States and Canada, based on the number of stations operated and the amount of gasoline gallon equivalents of CNG and LNG delivered.
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I have been watching this company for over a year now. While I am not a fan of T. Boon Pickens - I think this company is going to have great success. They are very proactive about creating new or taking over existing fueling stations for their CLN / LNG. With the our domestic car production companies suffering so badly (GMC said today that they are fairly certain that they don't have enough cash on hand to keep operations going through the end of the year) - natural gas a fantastic alternative. It really doesn't matter that electric / hydrogen / whatever is competing with natural gas as an alternative energy because the technology for natural gas is already developed and easier to implement quicker for car production operations.
Honda makes a natural gas car - that if it was available in my state - I would purchase. They can't keep up with demand in Utah (natural gas is something like 80 cents a gallon there). They sell on eBay for more then the MSRP. I know that there is enough demand throughout the country; so when one of the car manufactures finally mass produces one - the industry will grow significantly.
While I wouldn't go as far as saying this company has a very attractive balance sheet - they are healthy enough and expanding at a respectable rate. I just know that natural gas will play an important role in the near future. I am in this for a long term play - HOWEVER - if you are simply looking to make some short term profit - this stock WILL come roaring back when gas prices spike again (and they will come back up in a year or two).
I will say that it is quite foolish to simply invest in this company because Boone Pickens has his hand in it - don't forget that he has been selling his share off for a while now (his wife as well). Although I will give him props for generating some really good television advertisements. He also is lobbying for federal funding (which is why I don't like him - use your own money and start mass producing fueling stations - the car production will follow).
Ask yourself if you believe natural gas will have a large place in the transportation of the future - I believe it will... But then again I still play games on my Dreamcast and long for a big can of Planter's Cheez Balls...