Great quarterly earnings but very poor next quarter guidance. That will weight on the stock pretty heavily. I don't know how you can forecast a decrease in earnings next quarter that is 60% below this quarter unless the Chlor Akali business is going to fall off the map.
The basic issues with CLNE stock price. The ultimate cliche fits perfectly here. The chicken VS egg. Nobody is going to buy vehicles without having fueling stations. Nobody want's to build stations without demand in place. CLNE stepped up and committed to building the stations even when no LNG vehicles are on the road. They will come eventually, the problem is in the mean time they loose money on each additional station they open. Investors typically don't have the patience and every time earnings come out they freak out because of another loss even thought that's what the analyst are forecasting.
The simple fact is that you can't build a 3 million dollar station to fuel 30-40 vehicles and make that profitable. However the day will come soon that those 30-40 will swell to 300-400 or even 3000 and then the money will come rolling in. It's just takes time to ramp up. Westport is producing most of the engines needed
If you are a investor in CLNE everyone should take the 15 minutes and watch the LNG VS CNG video on the CLNE website. It talks about the Pro's and Cons of both. It's very difficult to get fast fill CNG at most locations as you have to a location that is on an existing gas line and a location where there is ample electrical service. To fill four vehicles simultaneously take a 500HP compressor. To do 8 would be 1000 HP. There is not that much grid capacity sitting idle. I am in the electrical business and have been waiting for one year for my utility to bring me enough service to hook up a 800HP chipper and a wood yard.
If you are more than 20-30 miles from a decent size city chance are you are not going to have either one of those two variable available for a long time. Also to note a major constraint may be permitting. I talked to a local station operator (Quarles) in my area who has a joint venture station with CLNE about 20 miles away. I asked what it would take to get one in my area (within 3 miles there are probably 600+ fleet vehicles plus a Fed EX dist. center that sits on NG pipeline on site). He told me they had inquired in our county and they county said no way. I think the regulators are feel very safe permitting a gas station but for some reason seem very afraid of a NG station in a densely populated area. Go figure. I am sure as they gain traction
The US gov't site finally updated yesterday. Seems to happen every four to six weeks. Results 13 new stations added in the last five weeks for CNG. Not all CLNE but a good sign. Also 10 LNG stations opened in last two months (forgot to write down the numbers the last couple of times for LNG) but there were only 32 open in August and now 42.
He makes 378K per year. If he was paid $5 million a year you would be complaining. He makes a very average or below average salary for a man who is co founder of a billion dollar market cap company. If he want's to sell 3% of his holding to cash in on his success that' not unusual. As a stock holder you would rather him do that than have management line their pockets with huge salaries.
The guy probably just wants to buy a vacation home or something similiar and wanted to free up $1 million bucks.
At first glance 36 trucks doesn't sound like that much but at 1,000,000 gallons at $2.75 that is nearly 1% of current yearly sales. 20 of these type of announcements a year and you have 20% growth.
Not saying that PJ is correct, I have no idea. However just thinking out loud, I wonder how hard it would be to make their planned sites at Pilot/Flying J combo sites with both LNG and CNG? I know that CNG has some very large power usage requirements to run the compressor that might not be available at all installations but there are bound to be some that could sustain the extra load. To me that would be the holy grail where you could get passenger cars and fleet vehicles that are either CNG or LNG. Assuming you could convert LNG to CNG on site that gets you over one of the main hurdles or CNG which is that you have to be on a NG main line to support the demand. I have over 30 pickup trucks and half past a Flying J with LNG. If it was CNG I would start buying the new fords but right now I have no fueling option.
I would like to punch Mr. Binz squarely in his face. He like all the idiots that thank we are all going to be driving electric cars in twenty years are MASSIVELY out of touch with reality. They live in big cities where there will be charging stations everywhere and people only travel 10 miles a day. I live in a subdivision of 100 homes ten miles from the city limits of a 1.2 million person city and I can't even get cable or a high speed internet connection after 20 years of the internet. How do they think we are all going to have charging stations for our prius's in that time frame?