The gains are real. They saved fifteen million dollars from buying back debt on a bargain deal. They would have paid that debt back at higher price if not. So over the course of time, that money will be saved. It's just that insteead f realizing those gains over a year, they got it all in one quarter. Actually, if those gains had been spread over several quarters, it might have benefited their stock price more.
And with the extinguishing of so much debt, interest payments are going to dive. Anyone got numbers for that? Anyhow, they are on track to destroy earnings estimates for 2016.
Q1 saw 25 dollar oil. Wht happens when it doubles to 50? What happens to margins then? Looking at huge gains. If margins go up to 40 cents, say, or 50 cents, could easily see sustained profits very soon.
As oil goes up to 50, or 60, you will see major increases in gross margin. And station construction and compressor sales. Cost and expense reductions along wthe whole vertical production line -- from manufacture of trucks, to fuel efficiency, to fuel costs, to fuel processing, to sg and a in both clne and wprt. and then there is the merger.
Estimate based on Q1 gross margins and backing out gain from debt purchase. So, in a year, CLNE should be making profits every quarter. This means they beat the heck out of expectations for this and next year. Profitable for whole year 2017 though losses in first two quarters. of course, this is based on Q1, and they could keep improving gross margins. Station construction could go up, and certainly compressor sales will increase
what to google to get the details of this?
I will take that 27% gain from 55 to 70 any day. I expect this to happen within four months.They will make some announcements over the next few months that will ease worries. Oppenheimer sees likely capacity expansion -- makes sense with SUNE bankruptcy, YGE maybe going down, global solar boom, and US ITC extension.
Also with such low FSLR debt, the stock deserves higher p/e, closer to 20.
context: they expanded during a quarter when oil hit the 20's. Should be the worst quarter in their history, but they have cut costs so much.
They could have gotten more than 10% interest on the 4 dollar shares. Instead they took the stock at 4 dollars, assuming they are worth 10% more than the 4 dollars .. . in two years.
from white house press release
Recognizing the excellent collaboration between Canada and the U.S. to establish world-class, aligned regulations and programs to improve the fuel efficiency and reduce greenhouse gas and air pollutant emissions from on-road vehicles, the leaders reaffirm their commitment to continue this strong collaboration towards the finalization and implementation of a second phase of aligned greenhouse gas emission standards for post-2018 model year on-road heavy-duty vehicles. The two countries are currently implementing aligned requirements for greenhouse gas emission standards for cars and light trucks and the leaders commit to continue close collaboration in conducting mid-term evaluations of the applicable standards for the 2022-2025 model years to ensure further acceleration of the improvement of vehicle efficiency and zero emission technologies
I agree that much of their investment was in the ANGH. But they have been able to grow their sales volumes steadily even with diesel prices plummeting. Meanwhile, the stock price has been cut to about a third of what it was a year ago. The stock has priced in a major bankruptcy or liquidity crisis event. And with their cash flow increasing, debt going down, and expenses down . . . looks like no bk risk at all. No liquidity problems.
Nat gas at five year low -- shippers will opt more for trucking than ever if the fuel price plummet is translated to shipping prices. Plus consumer goods sales will increase a good deal as people spend more. Economy is strong.
Margins will go down for first two months of this year compared to average last quarter, I would bet, but not by much. I mean, the margins seem to hold pretty steady despite drop in nat gas prices. Because of increased demand. Nat gas prices go down, margins go down very very slightly, and demand goes up substantially -- that's what I see for Q1.