Tag Archives: Westport Innovations

Business, Finance, Occupation & Industry

Has the EPA Made These Companies Rich?

April 9, 2013 Bartle Doo Leave a comment

By Tyler Crowe and Aimee Duffy, The Motley Fool

With the recent EPA proposal to tighten gasoline standards, several oil companies are crying foul. The American Petroleum Institute estimates that complying with these new regulations could cost the entire industry $10 billion upfront with an additional $2.4 billion each year to comply. This isn’t all bad news, though.

Fool.com contributor Tyler Crowe takes a look at this proposed regulation, and he sees some opportunities that could arise from this new standard. As gasoline becomes cleaner, it will also improve engine quality and help to increase the miles per gallon rates on gasoline vehicles, so it could take some pressure off of automotive manufacturers when meeting new MPG standards. Also, the anticipated increase in a gallon of gas resulting from this regulation could also play well into the hands of Tesla Motors and Westport Innovations , whose alternative transportation fuel options become more attractive as gasoline becomes more expensive.

As the most advanced designer of engines powered by natural gas, Westport Innovations is a small company with a big goal: to lead the world in transitioning away from traditional oil-based fossil fuels in favor of abundant, cheap, and clean natural gas. The company has a price tag large enough to match its ambition, and will need to grow revenue quickly in order to justify sky-high expectations. To help you determine whether Westport Innovations is right for your portfolio, The Motley Fool has just released a brand-new premium report breaking down the company’s opportunities, competitive advantages, and risks. To get started, simply click here now for instant access.

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Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Why Global Oil Demand Could Soon Peak

April 7, 2013 Bartle Doo Leave a comment

By Arjun Sreekumar, The Motley Fool

Filed under: Investing

Citigroup stoked a major debate when it argued earlier this year that America would become energy independent by 2020. Now the bank is out with another bold new call. In a research paper titled “Global Oil Demand Growth — The End Is Nigh,” Citigroup argues that global oil demand is “approaching a tipping point.”

The bank suggests there are two factors underpinning this expected trend. Let’s take a closer look at both of them, as well as the shocking conclusion Citi draws about the future of oil prices.

Shift toward natural gas
The first factor is a transition away from oil and toward natural gas as a fuel source. The shale gas revolution has already provided American consumers and companies with cheap and abundant supplies of the clean-burning fuel. It has even ushered in a so-called “renaissance” for domestic manufacturers, including chemical manufacturer Dow Chemical and steelmaker Nucor, which have moved or are planning to move plants that were previously relocated abroad back to the United States.

In addition, several U.S. truck manufacturers are capitalizing on cheap natural gas by equipping new vehicles to run on nat gas instead of diesel. For instance, Navistar reckons that over the next two years, a third of all its new trucks will be powered by natural gas instead of diesel.

Natural gas engine manufacturers such as Cummins and Westport Innovations will play a major role in driving this shift. In February, the two companies said their joint venture, Cummins Westport, is providing engines for two of the biggest natural gas transit fleet orders ever filled in North America.

Both see massive potential in the North American long-haul trucking market, especially as companies such as Clean Energy Fuels develop the natural gas refueling infrastructure necessary to support the transition toward gas-powered vehicles. Having already built dozens of new LNG truck fueling stations, Clean Energy plans on completing an additional 70 to 80 LNG fueling stations adjacent to long-haul trucking routes and key warehouse distribution centers across North America.

If the price of natural gas remains cheap compared with diesel, projects such as these should continue to flourish.

Improving fuel economy
The second major factor that points to a peak in global oil demand, according to Citigroup, is improving fuel efficiency among new vehicles. According to Citi’s estimates, fuel efficiency among new cars and trucks is improving at an annual rate of 3%-4% and 1%-2%, respectively. Combining the two, the bank suggests new vehicles’ fuel economy is improving by around 2.5% every year — an estimate it deems conservative.

Since the U.S. passed the Energy Independence and Security Act of 2007, which enforced higher Corporate Average Fuel Economy standards, vehicle fuel efficiency has improved drastically. The trend also appears to be catching on in other parts of the world, with the European Union, Japan, and Canada having passed similar mandates.

Though Citi …read more

Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

3 Reasons to Buy This Company

March 18, 2013 Bartle Doo Leave a comment

By Brian Stoffel, The Motley Fool

Filed under: Investing

What is it that you look for in an investment? Is it the opportunity to realize a return on your investment? Maybe it’s a company with a global presence? Then again, maybe you focus more on the less measurable goals, like the culture and ethical and environmental practices of the company?

Today, I’d like to introduce you to a company that — should you be interested in any one of these three characteristics — could fill that niche: engine and component manufacturer Cummins . Read below to see what I’m talking about, and at the end, I’ll offer up access to a special premium report on one of the companies Cummins works closely with to help bring a new type of engine to the world.

Spending the money where it counts
I could spout off a whole bunch of numbers to you — like how much Cummins revenue grew or shrank last year, or how much earnings and margins are improving. Surely, there is merit to these numbers, but I’m going to focus on why this company should be successful over the long-term for a different reason: sustainability.

Recently, The Motley Fool named Cummins as the best company in America. One of the reasons it was picked was because it has found a way to synergistically do well as a company by doing good for the earth and its inhabitants.

Cummins is one of the leaders in creating low-emission and alternative fuel engines. It’s partnership with natural gas engine designer Westport Innovations — dubbed Cummins Westport — is but one highlight of the company’s commitment to alternative energy. The company is actually taking things one step beyond the partnership, attempting to build a natural gas engine of its own.

As it stands now, Cummins already has engines that meet EPA, European Union, and California Air Resources Board regulations for emissions. It states in its annual report that it will continue to make investments that allow its engines to be the most efficient, cleanest emitting in the world.

Being so far ahead of the game has already paid off financially for the company, as fellow engine maker Navistar was forced to start buying Cummins engines when the EPA doubled the fines for trucks that were non-compliant (as Navistar’s were) on emissions standards.

If you’re a long-term investor, you have to know that such investments in research and development — based on making the world we live in a cleaner and more balanced place to live — are indeed wise ones for the coming decades.

Global presence
As the world continues to change, it’s also important to consider the global presence that a company has. As several countries have begun to spend more on building out infrastructure and adopting Western ways of living — for better or worse — Cummins has been there to meet demand.

And if countries like China, India, and Brazil continue to adopt Western ways of consumption, they’ll have …read more
Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Here's What This $4 Billion Hedge Fund Has Been Buying

March 15, 2013 Bartle Doo Leave a comment

By Selena Maranjian, The Motley Fool

Filed under: Investing

Every quarter, many money managers have to disclose what they’ve bought and sold, via “13F” filings. Their latest moves can shine a bright light on smart stock picks.

Today let’s look at Farallon Capital Management, founded by Thomas Steyer in 1986, and employing a bottom-up fundamental investing strategy.

The company’s reportable stock portfolio totaled $4.3 billion in value as of December 31, 2012.

Interesting developments
So what does Farallon’s latest quarterly 13F filing tell us? Here are a few interesting details:

The biggest new holdings are Dollar General and EMC. Other new holdings of interest include Dynavax Technologies and Freeport McMoRan Copper & Gold . Dynavax has likely hurt the Farallon portfolio, dropping sharply upon an FDA rejection of its hepatitis B vaccine Heplisav. The FDA left open the possibility of a more limited approval, but Dynavax now has more work to do, and it’s burning through cash, while its revenue has been shrinking. Fortunately, it does seem to have have ample cash to keep it afloat for a few years. Investors are right to worry about share dilution, too.

Freeport posted strong fourth-quarter results, and is cutting its costs, as well. It’s also expanding its scope, moving into oil and gas exploration — which has some investors not thrilled, seeing it as a loss in focus. The stock looks attractive, trading near a 52-week low, and with a forward P/E ratio of just eight. It sports a 3.8% dividend, too, and management is expecting moderate growth in the near-term. Bears worry about interest rate hikes from the Fed, though, which can make some alternatives to gold more attractive.

Among holdings in which Farallon Capital Management increased its stake was Westport Innovations . Westport designs low-emissions engines that run on natural gas, among other things. Many think its future is bright, thanks to a growing interest in alternative fuels, and currently low prices for natural gas — which may rise. The company recently inked a deal with a China-based natural-gas-fueling-station concern, and it’s also set to provide engines for two of the biggest U.S. transit fleets.

Farallon Capital Management reduced its stake in lots of companies, including Oracle . Oracle, meanwhile, has been shifting its focus from hardware to the cloud computing realm — though some are crying foul there. The company has been posting double-digit revenue and earnings growth rates over the past few years, and bulls see competitive strengths in its cash pile and strong customer roster. Oracle is buying telecom infrastructure specialist Acme Packet, which has some scratching their heads due to a lot of strong competition in its field.

Finally, Farallon’s biggest closed positions included Qualcomm and CBS. Other closed positions of interest include Molycorp , which has been struggling in a tough environment and worrying investors with a surprisingly large share offering and debt issuance, as well as negative free cash flow. Still, for those who can accept considerable risk and volatility, …read more
Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

How This Natural Gas Play Keeps a Technological Lead

March 14, 2013 Bartle Doo Leave a comment

By Daniel Ferry, The Motley Fool

Filed under: Investing

As the most advanced designer of engines powered by natural gas, Westport Innovations is a small company with a big goal: to lead the world in transitioning away from traditional oil-based fossil fuels in favor of abundant, cheap, and clean natural gas. The company has a price tag large enough to match its ambition, and will need to grow revenue quickly in order to justify sky-high expectations. To help you determine whether Westport Innovations is right for your portfolio, The Motley Fool has released a premium research report breaking down the company’s opportunities, competitive advantages, and risks. Today, you can get a free sneak peek at the report, detailing the technology advantage of Westport Innovations. Enjoy!

Technology and Patents
Any business has to watch out for competitors, but Westport Innovations seems especially vulnerable. Since it leaves much of the manufacturing of its designs to joint venture partners, these partners have a lot of incentive to leverage their natural gas engine know-how to create their own designs, shutting Westport out of the market and capturing the full value of the engines for themselves.

Cummins , Westport’s most important joint venture partner, announced back in March that it would be producing a 15-liter natural gas engine entirely in-house. This looked set to compete with the 15-liter engine that the Cummins Westport joint venture had already announced, and Westport stock dropped over 10% on the news. However, Cummins’ own engine will be spark-ignited and lack Westport’s proprietary high-pressure direct injection technology. This means that while Westport engines have the torque to move heavy loads up steep inclines, as diesel engines do, Cummins’ engine will not, severely limiting its use for cross-country applications.

This tale sheds light on the most critical factor for Westport’s success: the superiority of Westport’s technology and, by extension, the strength of its patent portfolio. Worldwide, Westport has filed over 400 patents related to its fuel injection system, cryogenically cooled LNG storage tanks, and combustion technology, making it by far the largest intellectual property holder in the natural gas engine space. Westport is dedicated to keeping its technological lead — in 2011 the company spent $53 million on research and development, over a third of revenue.

However, patents expire and existing technology can be surpassed. With manufacturing capacity basically limited to a small number of components, an investment in Westport is a bet on the company’s technological leadership. So far, the fact that giants like Ford, Caterpillar, and Volvo have preferred to partner with Westport rather than compete suggests that Westport has a valuable and decisive engineering advantage. To realize value for shareholders, Westport will have to keep it.

We hope you enjoyed this sample of our premium research report on Westport Innovations, which also includes a breakdown of the most important areas investors need to watch, an analysis of the risks facing Westport Innovations, and three key reasons to buy or sell the stock. To gain access to …read more
Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Is Cummins Destined for Greatness?

March 10, 2013 Bartle Doo Leave a comment

By Alex Planes, The Motley Fool

Filed under: Investing

Every investor can appreciate a stock that consistently beats the Street without getting ahead of its fundamentals and risking a meltdown. The best stocks offer sustainable market-beating gains, with improving financial metrics that support strong price growth. Let’s take a look at what Cummins‘ recent results tell us about its potential for future gains.

What the numbers tell you
The graphs you’re about to see tell Cummins’ story, and we’ll be grading the quality of that story in several ways.

Growth is important on both top and bottom lines, and an improving profit margin is a great sign that a company’s become more efficient over time. Since profits may not always reported at a steady rate, we’ll also look at how much Cummins’ free cash flow has grown in comparison to its net income.

A company that generates more earnings per share over time, regardless of the number of shares outstanding, is heading in the right direction. If Cummins’ share price has kept pace with its earnings growth, that’s another good sign that its stock can move higher.

Is Cummins managing its resources well? A company’s return on equity should be improving, and its debt-to-equity ratio declining, if it’s to earn our approval.

Healthy dividends are always welcome, so we’ll also make sure that Cummins’ dividend payouts are increasing, but at a level that can be sustained by its free cash flow.

By the numbers
Now, let’s look at Cummins’ key statistics.

CMI Total Return Price data by YCharts.

Passing Criteria	*3-Year Change**	Grade
Revenue growth > 30%	60.5%	Pass
Improving profit margin	8.3%	Pass
Free cash flow growth > Net income growth	1.9% vs. 284.3%	Fail
Improving EPS	301.4%	Pass
Stock growth (+ 15%) < EPS growth	163.8% vs. 301.4%	Pass

Source: YCharts.
*Period begins at end of Q4 2009.

CMI Return on Equity data by YCharts.

Passing Criteria	*3-Year Change**	Grade
Improving return on equity	117.2%	Pass
Declining debt to equity	(33.8%)	Pass
Dividend growth > 25%	185.7%	Pass
Free cash flow payout ratio < 50%	39.9%	Pass

Source: YCharts.
*Period begins at end of Q4 2009.

How we got here and where we’re going
Cummins sure looks to be justifying its recent placement atop The Motley Fool’s list of America’s Best Companies — at least from an investor standpoint. The engine maker misses out on a perfect score only because its net income has grown faster than its free cash flow. This isn’t cause for concern, as Cummins’ free cash flow has been higher than its net income for all of our tracking period, and even today it remains more than twice as high as reported net income. Any growth in the future would be icing on the cake. But what will it take for Cummins to earn a very rare perfect score?

As you probably know, Cummins and Westport Innovations are on the vanguard of natural gas-fueled trucking. …read more
Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Westport Innovations Goes Global

March 6, 2013 Bartle Doo Leave a comment

By Tyler Crowe and Joel South, The Motley Fool

Filed under: Investing

In the following video, Motley Fool energy contributor Tyler Crowe talks with energy analyst Joel South about Westport Innovations and the co-marketing agreement it has just signed with Chinese company Enn Group. The company is similar to Clean Energy Fuels in that it is working in China to pioneer the natural gas fueling infrastructure, something that pairs well with Westport’s natural gas engines. Tyler tells investors why, due to China‘s weak domestic oil sources and massive natural gas reserves, there may be even stronger motivation in that country to shift transportation to natural gas than there is in the U.S.

As the most advanced designer of engines powered by natural gas, Westport Innovations is a small company with a big goal: to lead the world in transitioning away from traditional oil-based fossil fuels in favor of abundant, cheap, and clean natural gas. The company has a price tag large enough to match its ambition and will need to grow revenue quickly in order to justify sky-high expectations. To help you determine whether Westport Innovations is right for your portfolio, The Motley Fool has just released a brand-new premium report breaking down the company’s opportunities, competitive advantages, and risks. To get started, simply click here now for instant access.

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Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Westport and Natural Gas Get a Boost From This Analyst Upgrade

March 6, 2013 Bartle Doo Leave a comment

By Blake Bos, The Motley Fool

Filed under: Investing

Jefferies has upgraded Westport to a buy, with a $38 price target. In this video, Motley Fool industrials analyst Blake Bos discusses why investors should always treat share-price pops that accompany analyst upgrades as opinion, not fact, and that your personal opinion on the stock — gleaned from your own research — should be a factor as well.

Blake also discusses why Jefferies is predicting that Westport will strongly benefit from an acceleration of natural gas vehicles in the U.S. and China and why this highly speculative stock still has several challenges ahead.

As the most advanced designer of engines powered by natural gas, Westport Innovations is a small company with a big goal: to lead the world in transitioning away from traditional oil-based fossil fuels in favor of abundant, cheap, and clean natural gas. The company has a price tag large enough to match its ambition, and will need to grow revenue quickly in order to justify sky-high expectations. To help you determine whether Westport Innovations is right for your portfolio, The Motley Fool has just released a brand-new premium report breaking down the company’s opportunities, competitive advantages, and risks. To get started, simply click here now for instant access.

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Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Did Warren Buffett Just Change the Game for Natural Gas Stocks?

March 4, 2013 Bartle Doo Leave a comment

By Chris Hill, The Motley Fool

Filed under: Investing

The following video is from Monday’s MarketFoolery podcast, in which host Chris Hill, as well as analysts Matt Argersinger and Jason Moser, discuss the top business and investing stories of the day.

In a CNBC interview, Berkshire Hathaway CEO Warren Buffett mentioned the potential of natural gas to fuel railroads such as his Burlington Northern Santa Fe. Do Buffett’s comments suggest a big upside for natural gas? What are the implications for energy companies such as Cummins , Westport Innovations , and Clean Energy Fuels ? In this installment of MarketFoolery, our analysts discuss the future of natural gas stocks.

The movement toward alternative energy is gaining momentum. One potential opportunity in this field is Clean Energy Fuels, which focuses its natural gas efforts primarily on trucking and fleets. It’s poised to make a big impact on an essential industry. Read all about Clean Energy Fuels in our brand-new report. Just click here to get started.

The relevant video segment can be found between 7:56 and 10:17.

For the full video of today’s MarketFoolery, click here.

The article Did Warren Buffett Just Change the Game for Natural Gas Stocks? originally appeared on Fool.com.

Chris Hill has no position in any stocks mentioned. Jason Moser owns shares of Berkshire Hathaway. Fool contributor Matthew Argersinger owns shares of, and has long January 2014 $80 calls on, Berkshire Hathaway and also has long January 2015 $25 calls on Westport Innovations. The Motley Fool recommends Berkshire Hathaway, Clean Energy Fuels, Cummins, and Westport Innovations and wns shares of Berkshire Hathaway, Cummins, and Westport Innovations. Try any of our Foolish newsletter services free for 30 days. We Fools don’t all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

3 Big Losers This Week

March 1, 2013 Bartle Doo Leave a comment

By John Reeves, The Motley Fool

Filed under: Investing

In the following video, Fool.com contributor John Reeves gives investors his weekly wrap-up, and tells us the story behind three stocks that were really hit hard this week. He discusses InvenSense‘s nearly 20% fall after an analyst downgrade, part of a continuing trend for the company. He also tells us about Westport Innovations‘ 5% fall this week, as the stock for this potentially disruptive natural gas engine company remains volatile on uncertainty about the future of the technology. Then he discusses SandRidge‘s 9% drop this week, on concerns over both management, and the company’s production.

Investors were startled after SandRidge plummeted when natural gas prices reached 10 year lows, but with the company halfway through its ambitious three year plan to profitability, the future looks bright. If you are unsure about the future of this emerging oil and gas junior, and are looking to find out more about its strengths and weaknesses, you should view this brand new premium report detailing SandRidge’s game plan and what to expect from the company going forward. To get started–click here!

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Source: FULL ARTICLE at DailyFinance

Bartle Doo Article Archives

Tag Archives: Westport Innovations

Has the EPA Made These Companies Rich?

Why Global Oil Demand Could Soon Peak

3 Reasons to Buy This Company

Here's What This $4 Billion Hedge Fund Has Been Buying

How This Natural Gas Play Keeps a Technological Lead

Is Cummins Destined for Greatness?

Westport Innovations Goes Global

Westport and Natural Gas Get a Boost From This Analyst Upgrade

Did Warren Buffett Just Change the Game for Natural Gas Stocks?

3 Big Losers This Week

Articles Archive