Westport Fuel Systems Inc (WPRT)

[Jack_Bolander]

I found this on the Yahoo Board:

"But here’s the catch: it’s a correction based on the very reasonable concern that WPRT is not going to make analyst numbers in the Q4 report, due to 1) sluggish sales growth, 2) 1.9 million in interest payments on the $20 million loan it received from the Canadian government that did not have to be paid inQ3 ; 3) unfavorable exchange rates during Q4. Recall that favorable exchange rates in Q3 were responsible for 60% of its revenue gain in that quarter. That is gone in Q4. Add flat sales and a new interest payment obligation and you are looking at a quarter that will not match Q3. What might change this is significantly higher Q4 sales, but if that was the case we probably would have had the report released by now.

My concern with this company is not the market potential, which is favorable, but the cash burn. WPRT continues to burn close to $5 million a month and is not making up for it in sales. True, development costs will fall in Q1-4 2018. But not in Q4 2017, which will be reported in March. All these factors put together predict an earnings miss, which is why, at least through April, this stock will be volatile at best, or fall significantly at worst."