Cramer Thinks Growth is Limited at Clean Energy (CLNE), Westport (WPRT) Unless Something Big Happens
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Price: $2.29 --0%
Rating Summary:
14 Buy, 6 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 14 | Down: 13 | New: 15
Rating Summary:
14 Buy, 6 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 14 | Down: 13 | New: 15
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Clean Energy (Nasdaq: CLNE) and Wesport (Nasdaq: WPRT) are two potentials the investors like as a play on the conversion of traditional internal combustion engines to run on nat gas, something which the U.S. has an abundant supply of.
However, Jim Cramer thinks that further upside might be limited unless something tot he effect of a presidential intervention takes place.
He notes that Congress has no intention of adopting T. Boone Pickens plan which would subsidize long-haul trucks adopting nat gas engines, which means the industry will need to go it alone. Westport, in collaboration with Cummins (NYSE: CMI), is a big player in this segment.
In terms of infrastructure, only about 600 Clean Energy nat-gas filling stations are operational, versus the 120,000 gas stations operating in the rest of the U.S. Hence, it only makes sense for vehicles like garbage trucks and buses to make the conversion.
Finally, passenger cars aren't likely to see a switch anytime soon, as it doesn't make financial sense for most consumers to pay more up front and reap the rewards later on.
So, unless a drastic changes happens in the industry, there will be companies like Exxon (NYSE: XOM), Chevron (NYSE: CVX), and others blocking Westport and Clean Energy from making significant headway with their nat gas offerings.
Westport is 0.6 percent lower on the session, while Clean Energy is up about 7 percent from a Dougherty call earlier.
However, Jim Cramer thinks that further upside might be limited unless something tot he effect of a presidential intervention takes place.
He notes that Congress has no intention of adopting T. Boone Pickens plan which would subsidize long-haul trucks adopting nat gas engines, which means the industry will need to go it alone. Westport, in collaboration with Cummins (NYSE: CMI), is a big player in this segment.
In terms of infrastructure, only about 600 Clean Energy nat-gas filling stations are operational, versus the 120,000 gas stations operating in the rest of the U.S. Hence, it only makes sense for vehicles like garbage trucks and buses to make the conversion.
Finally, passenger cars aren't likely to see a switch anytime soon, as it doesn't make financial sense for most consumers to pay more up front and reap the rewards later on.
So, unless a drastic changes happens in the industry, there will be companies like Exxon (NYSE: XOM), Chevron (NYSE: CVX), and others blocking Westport and Clean Energy from making significant headway with their nat gas offerings.
Westport is 0.6 percent lower on the session, while Clean Energy is up about 7 percent from a Dougherty call earlier.
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