Out Fox The $treet

Westport Innovations has a history of large losses and heavy spending on research and development. The company changed directions towards the end of 2014 with a stronger focus on financial discipline. The stock is investable for the first time in years though still extremely risky. It has been almost a year now since our last full coverage on Westport Innovations (NASDAQ: WPRT ) warned investors that the stock wasn't investable until it had turned around the financials. The unquestioned leader in natural gas engines hadn't figured out how to turn a technological advantage in the growing sector into a profitable business. At the time, the stock was down to roughly $15 from a previous high of $50, but investors were in for further turmoil. Read the full article on Seeking Alpha. Disclosure: No positions mentioned. Please review the disclaimer page for more details. 

Summary Operational improvements aren't hitting the bottom line. Analysts appear more negative despite the stock jump. Westport remains a technology leader in natural gas engines, but shareholders may not profit. It's really shocking to see Westport Innovations ( WPRT ) surge 24% on the day following earnings to only find out that analysts have actually cut estimates for the current and next fiscal years. Sure, the stock was beaten down so some bounce back is possible based solely on first-quarter results being better than feared, but the trend isn't so encouraging. Read the full article at Seeking Alpha. Disclosure: No positions mentioned. Please review the disclaimer page for more details. 

After another quarterly report, Westport Innovations ( WPRT ) had mixed results with good news for longs and bad news for shorts. Any investor checking back into the story after an absence should realize that since the last earnings release, the much-anticipated Cummins ( CMI ) - Westport , or CWI, joint venture's 400HP 12-liter engine hit production and the company completed a secondary offering to raise cash. The combination of news items sets the company up for positive results in the future. Unfortunately, the leader of natural gas engines didn't provide details on the earnings report that helped the stock, though it shouldn't be hurt that bad either. The lack of details regarding CWI growth and the continued focus on new development projects again left the investment community with concerns about profitability. Read the full article at Seeking Alpha. Disclosure: No position mentioned. Please review the disclaimer page for more details. 

Very few scenarios occur where a stock drops due to an event that's a major positive for new investors. A secondary stock offering can be harmful to existing shareholders, but new investors get the advantage of a stronger balance sheet or a major insider reducing a position possibly overhanging the stock. In the case of Westport Innovations ( WPRT ), the company is busy developing technology to take advantage of the switch to engines that can use the suddenly abundant and cheap natural gas supplies. In fact, a joint venture with Cummins ( CMI ) recently released the much hyped 12L engine needed for regional-haul trucks that don't daily return to the base of operations. As recently detailed in Westport: Joint Ventures Hide Major Catalysts , the release of this engine is one of several major catalysts that should propel the stock higher with one major catch at that point. That catch just happened to be the cash burn questions that he company solves in this offe...

Throughout 2011 and into 2012, the high cost of oil-based fuels and the low cost of natural gas stoked excitement over several stocks designing vehicles that run on alternative energy. Among this crowd, two companies have really stood out -- and ironically, they've taken opposite directions during the last year, providing a potential catch up period for the laggard. With a focus on natural-gas engines for trucks, Westport Innovations ( NASDAQ: WPRT     ) soared into the start of 2012. But the stock has spent the last 18 months losing 40% of its value. Conversely, Tesla Motors ( NASDAQ: TSLA     ) focused on building premium electric cars and had a more muted stock performance before its well-discussed 400% gain over the past 12 months. Now, the question is whether Westport can reignite its previous excitement, and catch up to Tesla's gains. Read the full article here . Disclosure: No positions mentioned. Please review the disclaimer page for...

Small Cap Insight After disappointing revenue guidance for the remaining of 2013, Westport Innovations ( WPRT ) slumped 11% to start August. This placed the stock back at a level originally reached in late 2011 on the back of the hype of natural gas as a transportation fuel for the trucking industry. With low domestic natural gas prices and plenty of supplies, the maker of engines that use natural gas stands at the intersection of huge potential and dwindling stock support. The confusing part about the Westport situation is that the vast majority of the promising future of the company is tied up in two major joint ventures (JVs). These businesses are booming with promising developments, yet the ownership percentage prevents the loading of the revenue into the financials. The rareness of this situation appeared to even have the analysts confused on the earnings call . The typical question focused on the honestly unimportant revenue of the 100% owned business units. Re...

Westport Innovations, Inc. (WPRT) remains a leading way to invest in the transition to natural gas as a transportation fuel. As previously noted, the market is no longer impressed with the growth rate of this once market darling. The company expects to benefit greatly from the building of the natural gas highway by Clean Energy Fuels (CLNE) and a new engine from the Cummins Inc. (CMI) joint venture, though in both situations the catalyst remains months away. The company is a global supplier of proprietary solutions that allow engines to operate on clean-burning fuels such as compressed natural gas (CNG), liquefied natural gas (LNG), hydrogen, and renewable natural gas (RNG) fuels. Prior to the recent quarterly report, Westport dropped revenue expectations for 2012 from greater than 50% growth to a still strong 30% growth rate. These reduced numbers, while remaining strong, unfortunately point to higher than expected losses into 2013. All signs point to a strong future as US and Chin...

Another company hoping to benefit from abundant and cheap supplies of natural gas in North America is Westport Innovations, Inc. (WPRT) . As previously noted, Clean Energy (CLNE) and Cheniere Energy (LNG) are also exploring ways to benefit from the current market dynamics favoring the users of the fuel. Westport is a global supplier of proprietary solutions that allow engines to operate on clean-burning fuels such as compressed natural gas (CNG), liquefied natural gas, hydrogen, and renewable natural gas (RNG) fuels. Westport expects to end 2012 with greater than 50% revenue growth, though the company expects to still generate losses even into 2013. All signs point to a strong future as US and China demand surges, yet the stock continues to show weakness. Read the full article at Seeking Alpha. Disclosure: Long CLNE. Please review the disclaimer page for more details.