The Shorts Are Wrong About This Nat Gas Leader
The following video is part of our "Motley Fool Conversations" series, in which industrials editor/analyst Brendan Byrnes and consumer-goods editor/analyst Austin Smith discuss topics around the investing world.
In today's edition, Brendan takes a look at a natural gas-focused company with a high percentage of short interest. Clean Energy Fuels, a company that specializes in natural gas stations and infrastructure, has about 25% of its float sold short. It's not particularly surprising, considering Clean Energy Fuels isn't currently making money and has been spending heavily on capital expenditures. Still, Brendan disagrees with the shorts on this one. He thinks Clean Energy, though still a highly speculative bet, has advantages as the first mover in the natural gas infrastructure space, and should benefit from tie-ins with truck stops that fleets are familiar with. Brendan thinks that while natural gas likely won't stay as cheap as it is now, it will remain cheaper than gas and diesel for the foreseeable future, and thus remain a compelling fuel for fleets and trucking companies.
Investors are rightly very excited about natural gas and the companies that stand to profit from it. Our analysts have identified a company that uses an interesting approach to play the natural gas boom and will prosper for years to come. Read more about an energy stock set to soar in our special free report: "The Only Energy Stock You'll Ever Need." Don't miss out on this limited-time offer and your opportunity to discover this under-the-radar company before the market does. Click here to access your report -- it's totally free.
At the time this article was published Austin SmithandBrendan Byrneshave no positions in the stocks mentioned above. The Motley Fool owns shares of Westport Innovations and Chesapeake Energy.Motley Fool newsletter services recommendClean Energy Fuels, Chesapeake Energy, Cummins, and Westport Innovations. Try any of our Foolish newsletter servicesfree for 30 days. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.