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Clean Energy Fuels Corporation. Sam Rohrer and Jeff Horowitz. Description. Clean Energy Fuels focuses on the sale of natural gas. Most of their customers are in the US or Canada. Delivers natural gas in LNG and CNG forms. It has about 480 fleet customers which is more than 21,000 vehicles.
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Clean Energy Fuels Corporation Sam Rohrer and Jeff Horowitz
Description • Clean Energy Fuels focuses on the sale of natural gas. • Most of their customers are in the US or Canada. • Delivers natural gas in LNG and CNG forms. • It has about 480 fleet customers which is more than 21,000 vehicles. • In addition to selling natural gas Clean Energy Fuels also makes money by selling natural gas vehicle fuel compression equipment. • The CEO is Andrew Littlefair
Recent News • Clean Energy Fuels Corporation recently signed a 10 year deal to build natural gas fueling stations for Saddle Creek Corporation • Nationwide high temperatures have caused an oversupply of natural gas, which has caused the government to consider boosting natural gas exports
Statistics • 52 Week Range: 9.02-23.80 • Current: $23.27 • Market Cap: $1.94 Billion • Beta: 1.95
Competitors • UGI • In addition to natural gas UGI also sells butane, propane, and electricity. • Vectren • Energy holding company • Works with natural gas and electricity.
Reasons to Buy • It has been steadily increasing since October and should continue. • It recently acquired Saddle Creek as a client. • High gas prices and taxes on pollution will lead to more companies looking for a new, cleaner alternative. • President Obama supports using natural gas for trucking. • 38% revenue growth in 2011. • An abundance of natural gas has led to low prices which may cause more companies to switch to it. • There has been a recent movement to fuel trucks with natural gas and to put more fuelling stations.
Recommendation • Buy: 21.50 (8 stocks) • Sell: 25.00 • $28 - $10 = $18 • Reasons • The stock's volatility lends itself to both large day gains and losses • Even if the stock drops some, the market is growing so it will increase in the long term. • News of new partnerships will drive the price higher
Conclusion • Recently acquired Saddle Creek Corp. • An abundance of natural gas caused prices to be low. • Buy: $21.50 • Sell: $25.00