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Saturday, 04/18/2015 10:33:42 AM

Saturday, April 18, 2015 10:33:42 AM

Post# of 8466
This article is spot on when it comes to NatGas vs diesel pricing. IMO, the carriers that don't make the switch just will not be able to compete in the future.
Didn't copy very well, here's the link

http://www.fool.com/investing/general/2015/04/18/3-stocks-we-love-that-wall-street-hates.aspx


Wall Street doesn't get things right all the time. Heck, it's actually pretty lousy at making any sort of prediction. Yet so many investors follow the advice of these experts, when the best idea might actually be to go in the opposite direction.

So we asked a few of our analysts to highlight a stock they each thought was getting some undeserved hatred from Wall Street recently, and why they think those experts are wrong. Here is what they had to say:

Jason Hall: Needless to say, Clean Energy Fuels (NASDAQ:CLNE) is definitely one hated stock.



CLNE DATA BY YCHARTS.

While a lot of short-seller-pushed misinformation hurt the stock in late 2013 and early 2014, the collapse of oil has been the biggest culprit since last summer, sending gasoline and diesel prices plummeting:



US RETAIL GAS PRICE DATA BY YCHARTS.

This has hurt the stock, because Clean Energy Fuels' business is building stations and selling natural gas for transportation applications, meaning gas and diesel are its "competition."

However, Mr. Market has ignored this:



HENRY HUB NATURAL GAS SPOT PRICE DATA BY YCHARTS.

Natural gas has fallen even further than oil-based fuels. There are other costs that factor into the pump price, but natural gas has retained its price advantage, and Clean Energy's refueling business has continued to grow. The company has increased gallons delivered around 20% per year for the past five years, and actually saw fuel sales accelerate last quarter, even as oil was plummeting.

Since the company has been cash flow negative for the past several years after spending big on expansion, I've kept a conservative approach. But we could see it cash flow positive by the end of the year, a huge step forward. You'd be well served to think about buying shares before Mr. Market falls back in love.
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