Why Clean Energy Fuels' Shares Jumped
Nov 13th 2012 2:39PM
Updated Nov 13th 2012 2:42PM
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Clean Energy Fuels (NAS: CLNE) jumped as much as 12% today after announcing a major partnership.
So what: GE (NYS: GE) is partnering with Clean Energy Fuels to build two new ecomagination MicroLNG plants from GE, which will be financed by up to $200 million from GE. The two plants will be up and running by 2015 and are designed to produce 250,000 gallons per day with the capability to expand to 1-million gallons.
Now what: Partnering with GE to expand LNG production is a positive for America's Natural Gas Highway but I don't think it really changes the investment thesis for shares. The plants won't be ready for more than two years and in the mean time the more important factor is the adoption of natural gas as a fuel for large fleets. I like Clean Energy Fuels long term, but today's news doesn't make me any more confident that the company will increase adoption rates near term and return to profitability.
The movement toward alternative energy is gaining momentum. One potential opportunity in this field is Clean Energy Fuels, which focuses its natural gas efforts primarily on trucking and fleets. It's poised to make a big impact on an essential industry. Read all about Clean Energy Fuels in our brand-new report. Just click here to get started.
The article Why Clean Energy Fuels' Shares Jumped originally appeared on Fool.com.Fool contributor Travis Hoium has no positions in the stocks mentioned above. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw. The Motley Fool owns shares of Clean Energy Fuels and General Electric Company. Motley Fool newsletter services recommend Clean Energy Fuels. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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