If you are long CLNE you might want to read the latest issue of NGV Today.
There is a report on the LNG fuel market and it is not positive for CLNE.
The article is more objective than the Seeking Alpha articles but leaves me wondering how
CLNE will deal with their "premature escalation" problem.
CLNE aggressively opened LNG stations over the last couple of years but the LNG fueling of HD trucks is rolling out slowly.
At the 8/7 conference call we need to hear what strategy CLNE is employing to deal with this situation.
CLNE has 72 stations yet to open at a cost of around 200 million. Are they going to convert them to CNG?
Will they consider being acquired by Shell, who has announced an LNG strategy?
NGV Today estimates the LNG percentage of HD trucks as 12% with only 11,000 trucks by 2020.
I hope the analyst on the CC push for a much more detailed explanation of how CLNE will handle what is clearly a major miscalculation. "Trust Me" doesn't cut it anymore.
We saw in February how quickly things can go bad. It's time to own up to the problem and convince investors that a viable plan is in place.
I'm long CLNE.
As a fleet industry guy I believe that natural gas will work in the future, but not in the near future or at least not soon enough to keep clne out of the $5 range. Slow conversion, excessive cost of new nat gas equipment and a bias toward CNG spell trouble for clne. Remember these guys beat the farm on LNG for over the road trucks. Press releases of 30 or 40 trucks show us that nothing big is converting. A target of thousands of units to be deployed will prove to be exagerated by at least five fold. The only OEM engine manufacturer, Cummings just cut production goals of natural gas engines by almost 50% for '14. I like the industry long term, say 3-5 years but with the debt and bloated expenses I don't see clne staying at 10 for long.
As a fleet person can you answer this question please:
Why does it cost only $2500 parts and labor to convert a gasoline powered passenger vehicle to run on EITHER natural gas OR gasoline (using a dashboard switch to change back and forth)?
What is the problem here in USA?
Hedge, the street hears your comments thus a 10 buck stock and not a 20 buck stock. Little did gamble and so far it has not paid off. As a small company CLNE really couldn't wait until the boom in that Shell or other Big Money would have put in all the stations at Flying J. Little stated that the government being involved will accelerate this industry by at least 5 years and in my opinion that is absolutely correct. With the new laws in California coming and the President putting NGV in the next budget the industry will have more motivation to convert. All the incentives in the world wont work unless one has an Engine and/or conversion equipment available. A combination of current rigs being converted to run a duel system and the Cummings engine being available as an option from the trucking manufactures could finally make this market hot. I am holding in that we are probable just on the verge of a lot of pieces coming together in this sector.
kaiser, people seem to forget the bottom line. CLNE is closer and closer to unsubsidized profits with each quarter, and this year there has been an acceleration of gallons accumulated under contract. If they do 25% increase as they say, and just part of the IMW contracts come to fruition, profitable, easy.
A message to be delivered to BoonLittle and the self serving millionaire club:
"It's time to own up to the problem and convince investors that a viable plan is in place." ret_ hedge...."
"the street hears your comments thus a 10 buck stock and not a 20 buck stock. Little did gamble and so far it has not paid off. " Kaiser
" you have abused this company for the past 10+ years, it's time to return to a fiscal responsible plan to enhance shareholders' value OR GET OUT! Sell OUT. The waiting game IS OVER." Teach
from kaise:" I am holding in that we are probable just on the verge of a lot of pieces coming together in this sector."
my friend do you know how many times Little has used those wards (lies) in the past? on the verge , on the cusp ....we're on our way.... turned the corner... we don't need gov....we will be profitable.... SOON. SOON has never come and the club is sucking the living out of this company at the expense of longs who still believe "on the verge"
This management belongs to the HALL of GREED/shame. Company could be profitable by end of year with necessary restructuring but it will NOT because IMO they have to lavishly feed the club, cant afford to give competitive bids due to their salaries and bonuses and yes also those bond holders, option players, and insider scoop.
Will they touch their executive $$$ bonanza , oh NO shareholders have to shell out the money no matter what because it's THE PLAN! It's the Boon plan to save America from foreign oil ,take it from shareholders and give it to the few. The waiting game!
Ask any famous investor and see what they think of a stock that could not return positive earnings after 10 years! It's management stup####!
ret_ hedge..I. love your questions, aren't you risking 3 thumb down? LOL