+ Watch PSIX
on My Watchlist
Sales growth and insider ownership...
Maybe there is some more gas in the rally
Should continue to beat the market because low cost natural gas utilisation
Making a bespoke product more cheaply than a significant rival with a potentially great future
Insiders own more then 58% of this newly listed company http://investors.morningstar.com/ownership/shareholders-overview.html?t=PSIX®ion=USA&culture=en-USThey make engines for natural gas and propane forklifts, cleaner and cheaper to operate than the diesel or gasoline.They also make engines for medium duty trucks, which they are testing now with Peapod grocery delivery trucks. They report this as a much larger market than the long haul trucks that Westport is going after.They make engines to generate power for drillers at the wellhead, they are robust enough to take the dirty gas that is flared off. They report that new laws will no longer let drillers flare off gas after some date (something like 2014 or 15). And that driller have been trucking in diesel for peer needs. This sounds like a very good market opportunity to me.I liked the folks after listening to their two earning calls, available on their website. you should listen. I am buying a real stake today.
Power Solutions seems like it is headed in an upward trajectory. However this growth is heavily dependent on the expected EPA regulations tightening which is already happening. When the EPA tightens its regulations, it is usually the case that other countries will also move towards doing the same. PSIX already has strategic partnership with MAT (an OEM that has most of the market share in China for industrial forklifts). The pie is going to expand. On the other hand, I'm not exactly sure if Power Solutions would be the best positioned among its competitors to take advantage of the widening pie (also, there is the question of whether or not the pie will actually widen, given that it is all very political). PSIX is trading at 17x book when its competitors are only trading at around 2-6x book. They also have 9x debt as they do cash. I am looking to end this pick when the 10-day minimum is met.
Natty lights = Natty Gas
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