Monday, February 10, 2014
Are Sharks Really Circling Clean Energy Fuels?
In a couple of recent articles (I, II) it was presented that Clean Energy Fuels (CLNE) had sharks circling for the great demise of a failing provider of natural gas for transportation fuel. While the stories provide tons of details regarding a market preference for compressed natural gas, or CNG, the articles fall far short in explaining that Clean Energy already has a focus on CNG. The big point of the articles was the flawed build out of America's Natural Gas Highway (ANGH) based on liquefied natural gas, or LNG. While possible, investors need to remember that Clean Energy is the leader in both CNG and LNG with no preference in the fuel to use other than economics. Did it leverage the business on a flawed concept or is it possible that competitors in the fueling industry lack the same level of knowledge and made mistakes?
Interested parties should review the video from Clean Energy discussing the reason for choosing LNG for the highway network and review why an alternative fuel transportation expert such as United Parcel Service (UPS) would utilize LNG from Clean Energy. More importantly, investors should read the market update from Clean Energy on Monday.
Read the full article at Seeking Alpha.
Disclosure: No positions mentioned. Please review the disclaimer page for more details.