SwingTrade Member Forum

[MikeDDKing]

I nibbled a bit on PSIX today at $45.51. I suspect it is a reaction to oil prices although I'm not certain. If it is due to oil prices, then I think this is a good buy here as oil prices impact sales for PSIX less than people think. If it is something else....

I think the biggest impact from oil prices is the use of PSIX engines for generators in the oil patch. The sales there relate more to well completion rather than oil prices. Therefore, oil prices should not have much of a permanent impact on sales in that sector.

In just the past few days I was driving back from vacation. I saw CNG for sale at a rest stop. I think it was in Ohio or Pennsylvania. I believe the price of CNG was $2.09/gallon. I believe the regular gas price was something like $2.80 at that same spot. Whatever, the prices were, it is sufficient to say that CNG was significantly cheaper than gas. Here are some links to corroborate that:

http://www.cngnow.com/average-cng-prices/pages/default.aspx

http://www.pennsylvaniagasprices.com/index.aspx?fuel=D&area=Lancaster&dl=Y&intro=Y

Keep in mind that CNG engines are much cheaper to produce than diesel. Therefore, fuel prices are only one reason of several for conversion.