1. Global natural gas production is increasing astronomically. Countries abroad are discovering their own natural gas deposits. The huge glut will dampen NG prices comparatively with diesel. The spread is likely to widen.
2. The global trend is for countries to seek their own energy independence with less control by oil producer cartels. This translates into more NG engines in the global transportation sectors. Not only is it the U.S. , but countries like Japan and China are vigorously seeking their own energies.
3.WPRT possesses the most competitive alternative energy engine technology. The alliances WPRT has formed with other companies is paving the way for a very profitable future.
4. Climate change is much worse than the public realizes and is accelerating. Government polices will become more conducive to NG in the transportation sector.
All of the above criteria are important. However, climate change will be emerging as the real game changer as the world changes its mentality from sustainability to survivability.
I am old enough to remember the gas lines of the 70s. Long term (5 plus years out) who knows if we really do have a huge glut and Adam Smith was correct that any glut will be consumed. 40 years back many said we would be out of oil by 2000. With all that has been found consumption will be moving up for sure.
With world population continuing to rise it's going to take every type of energy source out there to get us through the next 25 years.
As for climate change, forget about it. If climate change is under way with what we have consumed to this point, it's all over because I and others are not going to stop. My house is going to stay warm and the gas tank in my Toyota truck will stay full. No matter what anyone says, consumptions is going up not down. We are going to use everything we can get our hands on. In addition world economies and the pyramid schemes of all the central banks are going to make the problems of climate change look like nothing. The worlds banking systems are going down long, long before climate change is going to be any problem. Plus, if Al Gore the environmentalist can live like a king with 5 houses, private jets, big SUVs and burning propane to melt snow on his drive way, so can I.
The abundance of NAT gas is only positive for WPRT but like PNGGGJONES stated, management needs to execute and it's still not happening. They must start to face cost control. They can't float shares forever and spend their way to profitability. They are going too far.
Down 20000 bucks but still holding for the long term.
Wayne, you are only focusing on the external factors, but it is the INTERNAL FACTORS which will move this share price to the positive. MANAGEMENT needs to EXECUTE !!! Natural gas can go to $0.00, but if this company can't get its act together, it won't "go higher". In fact I think Westport will go to $0.00 before natural gas does. IMO
There's an interesting article in Forbes (which is quoting an article in Financial Times) about the world's dumbest idea. The idea is that there has been a "shareholder valuation" revolution in public companies in the last few decades. Management in public companies (which spend half as much as private companies on the research that fuels future growth, no pun intended) has been focusing on short-term profits, with devastating long-term consequences for those companies and the US economy as a whole.
I think it's actually good that WPRT management has been focused on the long-term possibilities that are there for the taking in this space, maybe. They have been focused on research and long-term projects rather than driving toward a self-defeating drive to short-term profitability.
It's more of a gamble than many stocks, but the upside reward might be substantial. No guts no glory--this is not an investment for the faint of heart.