Investing Observation & Opinion


  • Economy & Politics
  • Investing
  • Personal Finance
  • Related Posts

    Is The ‘Easy’ Money Over For European Stocks?
    Europe Cracks Down On Bitcoin, Virtual Currencies To “Curb Terrorism Funding”
    For Caterpillar The Depression Has Never Been Worse… But It Has A Cunning Plan How To Deal With It
    A Modest Proposal: All Companies Should Shut Down At Age 18
    Star Wars Could Break Box Office Records After This News
    Leave Bitcoin Alone. Abolish Cash Instead.
    What UnitedHealth Doesn’t Mean For Obamacare
    This Could Be The Next Weapon Of Mass Destruction
    Warren Buffett Stocks To Ditch In 2015
    What Are The Stock Buyback Benefits For Investors?
    The Eerie Link Between The Federal Reserve And The Sinking Of The Titanic
    What The $16.6 Billion Nokia Merger Means For Investors Today
    New Salmon Is The First GM Animal Approved For Sale As Food
    Wal-Mart Scrimped On Hiring As Store Space Grew Rapidly
    Aetna Says Individual Obamacare Business Performing As Expected

    This Fast-Growing Company Could Kill The Gasoline Engine

    Every now and then, I run across a statistic or a fact that makes me feel really stupid. I kick myself and ask: "Why didn’t I already know that?"

    What got me is that my red Dodge Ram 1500 is technically classified as a "light truck." I was mortally offended. My pickup has a 5.7-liter HEMI V-8 and is as loud as the space shuttle and almost as fuel efficient. It doesn’t feel like a light truck. 

    But it is. 

    The thing that matters more than light trucks, though, are the larger semi trucks that roll down the highway. There are millions of them. They drive a huge amount of miles, and they get about five miles to the gallon. These rigs burn through billions of gallons of diesel a year. 

    Imagine if we could replace diesel with something else; that fuel would be a serious game changer. 

    If that fuel were cleaner than gasoline and diesel, then transportation emissions would drastically decrease. And if this new fuel were cheaper, the diesel dominos would begin to fall. Quickly.

    Now, hold on to your hats. Because the reality is, all of those various kinds of light and heavy trucks — and cars, too — can get the same energy out of a fuel that costs about half what diesel sells for.

    Let me explain.

    Natural gas is abundant, clean and, unlike oil, can be domestically sourced. In fact, there’s an entire ocean of natural gas in this country waiting to get tapped. 

    As most of you already know, natural gas production is on the rise because of an increase in oil production in the nation’s massive shale formations. 

    What you may not know is that natural gas has the ability to displace billions of gallons of diesel, not only on the road, but for heavy equipment like cranes and bulldozers and even tractors and combines on the farm.

    That’s all around the corner. And I’ve found a stock that is the strongest pure play on this trend.

    That stock is Westport Innovations Inc. (WPRT).

    This is an area that has several key tailwinds behind it: environmental, governmental and industry support. I think natural gas vehicles are the inevitable future. 

    Westport makes natural gas engines that are cost-competitive with diesel engines and have 80 percent of the parts in common.

    Vancouver-based Westport has a market cap of $1.5 billion, which is right in the sweet spot for the types of companies I like to recommend in Game-Changing Stocks, my bi-monthly stock advisory, which focuses on aggressive growth. 

    It’s growing its top line and not by a little. The orders for these vehicles are clearly fueling remarkable growth: In the past 12 months, it’s booked $371.48 million, according to Bloomberg, a 64 percent increase from the $226.5 million recorded in fiscal 2011. (And that figure was $100 million more than the year before, in 2010.) 

    That’s the type of growth Westport is seeing now. 

    Today, there aren’t all that many of these cars on the road in this country. So imagine what that revenue is going to do when consumers learn they can drive a car on fuel that costs drastically less than gas — or when truckers start buying big rigs that burn clean fuel that lets them sidestep ever-increasing diesel emissions rules. 

    Action to Take —> A number of factors have converged to form what looks a lot like the perfect storm for natural gas to become a substantial fuel source. Supply and pricing dynamics, industry support, continuing infrastructure development, strong political support and international opportunity — it’s all there. There’s simply too much to say on these points to fit into one article. 

    But let me be clear: None of this is theoretical. None of it is on a chalkboard. 

    It’s here. It’s happening.

    The trucking industry wants to use natural gas, the truck-stop operators are willing to sell it, and corporate America is only too glad to embrace the significant cost cuts natural gas will afford. 

    Natural gas also clearly has White House and Congressional support, and it is gaining serious traction abroad, especially in China. A prime candidate to invest in the space is clearly the pure play, Westport.

    [Note: Westport is just the tip of the iceberg. The abundance of natural gas in the United States will lead to the third industrial revolution. One analyst is predicting a stock could rise 1,566 percent. Another stock has already jumped more than 1,000 percent and is expected to keep going. To learn more about investing in the natural gas boom, click here.]

    Andy Obermueller

    This article was originally published on Jan. 25, 2013, at

    Andy Obermueller is the Chief Investment Strategist for Game-Changing Stocks. He spent ten years as a financial journalist, working for some of the nation's largest newspapers. At the business desk of The Star-Ledger, his market acumen helped guide the financial news read by more than a million people each day. After watching business from the outside for ten years, Obermueller got an inside look as a commercial lender with Wells Fargo's Business Banking Group, where he worked prior to joining StreetAuthority.

    | All posts from Andy Obermueller

    Discuss this Story:

    Comment Policy: We encourage open discussion. Comments including racist statements, profanity, name calling or spam will be removed at our discretion. We use filters for spam protection. If your comment does not appear it is likely because it violates the policy.

    Oil Trades Near Three-month Low As Excess Supply Takes Toll
    Number Of $5 Billion-plus Takeover Deals Hits Record
    Investor Gabelli Joins Millennials Cutting The Cable Cord
    Gap Cuts Full-year Profit Forecast As Dollar Weighs
    This Is How GOLD Acted During Past Rising Rate Cycles
    Tumbling Treasury Yields Signal Possible Fed ‘Policy Error’ Being Priced In
    WTI Tumbles Back Below $40, Goldman Warns Risk Of “Sharp Leg Lower”
    Former Subway Pitchman Jared Fogle Is About To Be Sentenced
    This Is The Biggest Diamond Found In More Than A Century
    What ISIS ‘Blood Oil’ Really Means For Oil Markets
    The Day Before Thanksgiving Actually Isn’t The Busiest Time To Fly
    Gender Equality Is Now Better In Rwanda Than In The US
    Anonymous Could Hobble ISIS By Hacking PlayStation Consoles
    The Best Advice If You Find Yourself In A Terror Attack: Do Not Play Dead
    Not Much Evidence Mass Surveillance Works
    Home Depot & Lowes Avoid The Retail Bloodbath With Strong Earnings
    It’s REIT Time: Stock Up Durable Dividends Now
    A Global Financial Literacy Test Finds That Just 57% Of Adults In U.S. Are Financially Literate
    Starboard Asks Yahoo To Drop Alibaba Stake Spinoff Plans
    Oil Slides Again As Focus Returns To Heavy Glut
    Best Buy Comparable Sales Miss On Low Demand For Mobile Devices
    Stock Futures Rise After Fed Minutes Soothe Investor Nerves
    U.S. Consumers Favor Amazon For Online Holiday Shopping
    Pfizer-Allergan Talks Accelerate Amid New Inversion Clamp-down
    Soothing Fed Sounds Send Shares, Emerging Markets Higher
    Crude Tumbles To $40 Handle After DOE Confirms Significant Cushing Inventory Build
    U.S. May Bring Criminal Charges Against JP Morgan, RBS Executives, Prosecutors Pretend
    BlackRock Liquidates Its Macro Hedge Fund Following Worst Loss Since Inception, Surge In Redemptions
    It Will SUNE Be Over: Axiom Says SunEdison “Credit Event Appears More Likely”, Sees Price Dropping To $2/Share
    Read more from Investing...

    Liberty Investor Digest

    Get today's most important
    financial headlines all in
    one place by email!



    Sign Up For Liberty Investor Digest™!

    Get Liberty Investor Digest FREE By Email!

    Input your name and email address in the fields below and get today's most important financial headlines sent straight to you inbox!

    Privacy PolicyYou can opt-out at any time. We protect your information like a mother hen. We will not sell or rent your email address to anyone for any reason.