The Not So Redeeming Tweets By Clean Energy
Last week, the CEO of Clean Energy Fuels (CLNE) tweeted about an exciting company event sending the stock 10% higher the following day. On Thursday, the company announced the distribution of a renewable natural gas fuel, Redeem, made entirely from waste. The stock though plunged back close to the previous levels as the market expected something bigger regarding customers or government incentives. This round trip move should highlight the perils of investors paying too much attention to social media. A big difference exists between a company important achievement and a stock moving event.
The basics are that the CEO started tweeting on Sept. 24 discussing big things in the works at Clean Energy and natural gas fueling. On that day, he promised a big announcement the following week. Due to his recent addition to Twitter and limited followers (around 425 at time of writing), his proclamation probably didn't get a lot of notice nor did it again with a further tweet about a big announcement on Sept. 26. By the 30th though, the Twitter account was identified and the tweet regarding a big announcement on Oct. 3 hit the mainstream investors. The stock soared the following day based on the typical over-hyped expectations. Below are the three tweets:
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