"oh any buy the say.....anyone know the price pickens options are priced at and what are its rules ?"
On December 28, 2006, the Company issued to Boone Pickens a five-year warrant to purchase 15,000,000 shares of the Company’s common stock at an exercise price of $10.00 per share. See note 13.
(13) Related Party Transactions (Continued)
On August 2, 2006, the Company entered into certain futures contracts related to January 2008 through December 2011 (Positions). During the period August 3, 2006 through December 28, 2006, the Positions decreased in value by $78.7 million. On December 28, 2006, the Company entered into a transaction with Boone Pickens, its majority stockholder, whereby Mr. Pickens assumed the obligations related to the Positions in exchange for a five-year warrant to purchase 15 million shares of the Company’s common stock at $10 per share. The derivative obligation of $78.7 million was removed from the Company’s balance sheet, and the warrant (valued at $80.9 million) was recorded as an increase of stockholders’ equity. The difference between the value of the warrant and the value of the derivative obligation ($2.2 million) was recorded in the Company’s consolidated statement of operations for the year ended December 31, 2006 as a loss on extinguishment of derivative liability.
As the Positions decreased in value, the Company was required to make certain additional margin deposits to cover the losses. Mr. Pickens agreed to loan the Company up to $100 million to make such deposits under a revolving line of credit (the Revolver). At December 28, 2006, Mr. Pickens had advanced the Company $69.7 million under the Revolver to make additional margin deposits which he remitted directly to the broker. As part of the transaction, Mr. Pickens received back the deposits he had funded with advances under the Revolver as payment of the outstanding Revolver balance. The Company paid Mr. Pickens $1.2 million of interest expense on advances made under the Revolver during the period. The Revolver was cancelled on December 28, 2006 after the transaction was completed.
pages 91 and 97
Just like Cramer, they all have their motives. If anyone thinks that after CLNE has come this far, that they are going to roll over and put their head in the sand, PLEASE SHORT ! While we could see near term resistance, just remember there are many funds that missed the ship leaving dock and want to back the tape up to when it was $18/share. All the data I read from Reasearch reports available on ETRADE says its going much higher long term. Another press release with another positive story should be coming again soon from Clean Energy!
I like CLNE, but I also think its overextended and is due for a contraction more than the 10% its just seen. Hence I took 1300 sh off the table Friday. If I'm correct, I will be getting back in. If I'm wrong and the stock price zooms, so be it. I rode it since about $6, so I'm certainly happy. GO CLNE, but back off a bit now!
THE ARTICLE SAYS BASICALLY WHAT I HAVE BEEN SPEWING FOR THE PAST SEVERAL MONTHS, THAT THE STOCK PRICE AND VALUATION HAS NO WAY OF JUSTIFYING CURRENT PERFORMANCE AND EVEN FUTURE GROWTH POSSIBILITIES. *IT'S ALL PRICED IN*- EXCEPT PERHAPS FOR THIS T-BOONE PICKENS WARRENT DEVALUATION, WHICH I HAD NOT HEARD OF. EXPECT THE STOCK TO TAKE AT LEAST A 10% HAIRCUT ON MONDAY.
(BUT WHAT DOES BARRONS KNOW? A FEW MONTHS BACK THEY SOLD YOU TO SHORT WPRT AT 12 DOLLARS AND LOOK WHAT HAS HAPPENED!?)
HERE IT IS, FULL ARTICLE TEXT:
T. Boone Pickens' Gassy Stock
By BILL ALPERT | MORE ARTICLES BY AUTHOR(S)
Even if the government raises subsidies to the natural-gas industry, shareholders in Clean Energy Fuels don't have much chance of hitting pay dirt. Industry tycoon T. Boone Pickens may get his payday, though.
T. BOONE PICKENS SAYS HE STARTED PROMOTING natural-gas- fueled vehicles back in 1988, hoping to boost the price of his company's natural gas. "I predicted I would do it within three years," says the 81-year-old tycoon. "Now it's 2010."
Clean Energy Fuels has set up more than 200 natural-gas fueling stations across the country. Will there be enough takers?
After 22 years, he thinks it's finally happening. A Pickens-controlled company, Clean Energy Fuels, sells natural gas to trucks and buses at yearly volumes equivalent to 120 million gallons of gasoline. Shares of Clean Energy (ticker: CLNE) have quadrupled within the past 12 months, to around 21. With America's natural gas currently cheaper than OPEC's diesel fuel, Pickens is optimistic that Congress will enact an energy bill that subsidizes the conversion of trucks to natural gas. He's lobbied politicians and the public with his "Pickens Plan" for oil independence: generate electricity with wind and solar power plants, fuel vehicles with the natural gas supplied by the likes of Clean Energy Fuels.
Wall Street has already voted for the Pickens Plan. Clean Energy's $1.3 billion stock-market capitalization values the yet unprofitable venture at 45 times the cash flow that analysts forecast for this year and 20 times the average forecast for 2011 -- about double the multiples of some rival companies. A jubilant end-zone dance like that seems premature. Natural gas clearly merits increased use as truck fuel, in place of the dirtier, more expensive, imported diesel. But after rising 50% since December, the stock price of Clean Energy more than discounts a potential boost in the generous government subsidies that have kept losses at the Seal Beach, Calif.-based enterprise from being even deeper than they are.
Short Hedgies love to plant stories in the media and I've witnessed a good number of them thru the years. And a good number of them authored by Bill Alpert. It appears he is one of their entry points into the media. fwiw, most of these negative "plants" don't affect the stocks longer term, by my experience.
If large fleets of trucks eventually roll on natural gas, major oil and gas companies could step in without much trouble and compete away Clean Energy's gross margin -- which is five times the average for gasoline and diesel distributors. Shareholders can expect to get massively diluted, also. To build out its fueling infrastructure, Clean Energy has had a cash-sucking need for capital investment. Management awards itself piles of stock options. Warrants hanging over the company will dilute earnings almost 30%, including a wad that Pickens must exercise before 2012 or lose a profit of $150 million. He can use the money: Most of his shares are pledged to a bank. Clean Energy investors should brace for that 30% haircut.
IN 1996, PICKENS RETIRED FROM his independent energy company, Mesa Petroleum, and from a swashbuckling career as a corporate raider. Since then, he's managed money with uneven results -- and been a generous donor to hospitals, universities and Republican candidates.
He also paid Mesa $1.3 million in 1997 for two natural-gas fueling stations at the airports in Los Angeles and Phoenix. Those stations were the start of Clean Energy Fuels, which now counts more than 200 locations in 23 states. Another 50 stations are in the works, says Andrew Littlefair, who is the company's chief executive and a Pickens colleague since the days at Mesa.
Cities from Los Angeles to Atlantic City are deploying natural- gas-fueled trucks and buses. Commercial trucking fleets are testing the fuel at companies like UPS, Wal-Mart and AT&T. Those are good-sized markets. Municipalities use more than five billion gallons of diesel and gasoline a year to run heavy vehicles, while regional trucking fleets use an estimated 30 billion.
"People are finally figuring out that this thing can and will work," says Littlefair. "The story's not that complicated. It's a low-carbon fuel that's cheaper and works pretty well for the right vehicles."
For many frustrating years, Pickens argued that the right vehicles included cars. Among the 11 million vehicles now running on natural gas worldwide, there are over 60 models of car. Fiat sold more than 140,000 natural-gas-powered cars last year in Italy. But in the U.S., a paltry total of 130,000 vehicles use the fuel, few of them cars. Honda markets the only natural-gas car, the Civic GX, in California and New York.
Gasoline was always cheaper in the U.S. than in Europe. And now, America seems to have picked batteries to replace the gasoline in cars. Natural gas may help generate some of the electricity that powers plug-in electric cars, but the gas will get burned at power stations and the energy distributed through electric wires rather than fueling stations like Clean Energy's.
But 18-wheeler trucks can't run on today's batteries. Vehicles in the heavyweight classes known as Class 5 to Class 8 can carry the large fuel tanks required to cover meaningful miles on compressed natural gas (squeezed at 3,600 pounds per square inch) or liquid natural gas (cooled to minus 160 Celsius). So Pickens and Clean Energy have refined their sales pitch to target the 18-wheelers.
State and local governments were the first large customers. In California and Arizona, air quality concerns got government agencies interested in natural-gas-powered trucks. Compared with diesel, natural-gas engines produce much less nitrous oxide and particulate matter, and about 20% less greenhouse gas.
The container ports of Los Angeles and Long Beach, Calif., play host to about 500 gas-powered drayage trucks, which haul containers away from ships. Another 500 are being deployed now, with 160 more this summer. In less than two years, the number of states with some gas-fueled municipal trash trucks has risen from three to 11, and Clean Energy has contracts to fuel many of these government vehicles.