Designs, manufactures, distributes and services diesel and natural gas engines, electric power generation systems and engine-related component products, including filtration and emissions solutions, fuel systems, controls and air handling systems.
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Bullish on natural gas as the energy of the future. T. Boone Pickens has said he could power his car on NG at less than $2 a gallon. Now, while that could be a little overstated, it still shows us just how dirt cheap natural gas is. Plus, natural gas is more enviromentally friendly (burns 30% cleaner than coal, 50% cleaner than gas because of a higher hydrogen content), so it is protected from political risks more so than other fuels. With the trucking industry soon to start using some NG engines and NG gas stations already on it's way, this sector looks very promising. And as long as NG stays around $2.80, irbid cheaper than coal, which is causing many to switch over to NG and move away from coal, further benifiting Cummins. Plus, has a much lower PE and PEG than other players in the industry. Bullish.
Actually TBP said $.20 (as in 20 cents) not $2. I have a NG powered Honda Civic right now and pay less than $1/gallon.
Even more of a reason to be bullish on Natural Gas and Cummins. I think it depends on your location and what time you are talking about. According to http://www.pickensplan.com/news/2012/05/15/pickens-truckers-natural-gas-allies/, "price differential between natural gas and diesel – about $1.50 per gallon – Pickens says", which would imply around a price of $2.50 ($4 - $1.50) per gallon. The general point is that NG is so much cheaper than oil, and we should start using a lot more as a country to bring down fuel prices and be more environmentally friendly. If you are in a major natural gas producing area, then it will be much cheaper than if you are somewhere with no NG production.